Analysis of International Joint Ventures for Global Expansion

This academic report provides a comprehensive overview of international joint ventures (IJVs) as a key strategy for global business expansion. It begins with an executive summary and introduction, followed by a literature review that explores the formation of IJVs, the process of internationalization, and the decision-making involved in their implementation. The report analyzes the benefits and challenges of IJVs, assessing their role in foreign market entry and discussing factors such as risk-sharing, resource acquisition, and cultural considerations. The analysis and discussion section delves into the practical implications of IJVs, considering factors like partner selection, management, and cultural differences. The conclusion summarizes the key findings, emphasizing the importance of IJVs in the context of globalization. The report also includes a list of references for further research.

Academic Report

EXECUTIVE SUMMARY
At the time of effective growth of globalisation, there are various concerns which are
related with suitable benefits. For this, they tends to brought essential changes for the segments
of human life and global business which is a specific area by having effective contribution. For
this, organisations tends to have presence at the global level and make their position for business
plan by undertaking the suitable trends at the global level rather than domestic market. Besides
from this, prominent expansion at global level undertake ventures for the market entry methods
including joint venture. Hence, the overall discussion is about joint venture and effective market
entry tools for the global business environment.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW................................................................................................................4
Understanding regarding the formation of international joint ventures and the
internationalisation/globalisation process...................................................................................4
Analyse the decision making process by determining the use of international joint ventures....5
Demonstrate the understanding of international joint venture for global expansion..................6
Critically assess the benefits and challenges for the use of international joint ventures in
foreign market entry....................................................................................................................7
ANALYSIS AND DISCUSSION...................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
International business depict the trade of products and services and effectively undertake
knowledge across the national borders and at the global scale. It prominently undertake cross
border transactions of suitable commodities and services among two or more countries. For this,
suitable transactions of economic resources undertake skills, people and capital for the purpose
of international development of the presence of physical goods including finance, insurance,
banking and so on. In terms of organising business overseas, organisations tends to develop
separate national markets at the global area and effectively undertake reduction of barriers in
order to make cross border trade easier (Aguilera and Grøgaard, 2019). Along with this, it also
undertake technological change, specific development for the communication, transportation and
information processing. In regard of this, the report tends to cover the prominent information
about the international business and joint ventures which are useful for them in terms of effective
expansion in foreign market. Moreover, it also critically assess the benefits and challenges for
the use of international joint ventures in foreign market entry.
LITERATURE REVIEW
Understanding regarding the formation of international joint ventures and the
internationalisation/globalisation process
According to Linhart F., (2014), International joint venture occurs only when two
businesses are depends on the two or more nations undertaking the suitable form of partnership.
For this, company tends to explore international trade without undertaking suitable
responsibilities for the cross border business transactions in order to opt and form joint venture
with foreign company who tends to have already successful image in market. Moreover,
international investors also tends to enter into the market undertaking joint venture in order
eliminate risk that occur from the acquisition of business. Along with this, joint venture is the
suitable collaboration among the international and domestic organisation and also tends to
collaborate towards the share of rights, invest capital and also tends to handle their share in
company (Peterson, Arregle and Martin, 2020). Along with this, it also tends to maintain
professionalism among the new business in order to take entry for the several components of
work life and regulatory violation. Furthermore, joint venture also require effective responsibility

from company and other methods as they are not much workable. Joint ventures also undertake
tax benefits for several nations, prominently when business is taxed at higher rates.
Despite from this, when most of the organisations work collectively on the specific
project then they tends to exchange their skills. In this, one partner tends to take suitable control
over the skills and competence in order to retain workforce for the effectively moving
technological changes. Besides from this, each partner tends to give suitable assets and
prominently consider the cooperation in order to expand their expertise by setting new area.
Away with this, effective collaboration also tends to lead towards the financial system which is
effective authorised regarding the involvement of company in terms of collecting the extended
source and achieve the suitable position for the success at international level. In regard of this,
companies with effective expertise tends to relies on each other in terms of proving their skills
instead of enhancing their resources and time to effectively evolve for the accomplishment of
business.
Along with this, several foreign business projects tends to effectively require suitable
skills from several areas. For this, companies tends to prove in order to develop and maintain the
effective requirement of expertise in company. For this, technological and administrative issues
also tends to expand and companies need to analyse the environment (Nambisan, Zahra and Luo,
2019). For this, they tends to push organisations in order to accept prominent planning to keep
proficiency. Furthermore, planning also tends to keep the suitable requirements in order to spend
their assets and consider the risk factor which is concerned with the involvement of specialists.
Moreover, risk sharing also tends to effectively collaborate for the suitable research and
effective development. In regard of this, effective research prices are tends to grown for the rate
of prominent revolution towards the products which are grown and investigate regarding the risk
factor for the evolution of risk factor which is high. Besides this, considering the effective
planning regarding the international businesses which are concerned with success in order to take
entry for new international market. In regard of this, suitable collaboration tends to work for the
traditional marketing and administration system in order to undertake the market and consider
effectively securing the commodity for market in order terms of enhancing the chances for
purchase.

Analyse the decision making process by determining the use of international joint ventures
According to Manzella J., (2020), The joint venture partners has homogenous insight,
regarding the mission, strategies, objective and plans to have effective cooperation to develop
harmonious working relations. For this, effective identification regarding the decision making
and selection method tends to deal with joint ventures for the effective suitability of businesses.
For this, effective operation of business by undertaking the joint venture need to effectively
develop prominent management of business by having suitable focus in various selection and
decision criteria including technical skills, developing effective level of dependency, size of
partners, communication barriers and so on. For this, the primary selection effectively depict the
capability of partner in order to provide technical capabilities undertaking the suitable use of
complements by which company tends to seek their partners effectively. Moreover, it also tends
to determine the effective success factors regarding the areas that suitably impact the position of
competitors for execution and also effectively tackle other successful joint venture (Sinkovics,
Sinkovics and Archie-Acheampong, 2019). Along with this, they also consider the prominent
resources for the company of partner and leads to make joint venture to operate their business at
the international level. Besides from this, management team also plays an effective role
regarding the success of joint venture and also have good management team by which workforce
tends to perform their roles and responsibilities in an effective systematic manner. In terms of
several organisations, they tends to make joint venture due to this it is useful in terms of running
the business operations regarding the development in an effective manner (Wettstein and et. al.,
2019).
For instance, in terms of undertaking several cultures and developing personal rapport is the
essential factor for business before concur each and every factor. For this, joint venture with
organisations in several nations undertake China, Japan and so on and other organisations tends
to develop close relations for the benefit of business and their negotiations. They also tends to
appear unfortunate regarding the western administrator for the joint venture and also depends on
the personal terms among the main management that tends to hinder the functioning of company
and effectively maintain close relations among the management partners. It also leads to reduce
the prospects for the crucial things and for this, companies need to be constant among the
individuals of the team.

Demonstrate the understanding of international joint venture for global expansion
According to D’Alimonte D., (2014), Joint venture is undertaken as the effective
development of business that leads to incorporated by two or more organisations. Before
commencing the operations, company tends to undertake threats for the suitable remunerations
and also leads to assign operational responsibilities for each and every individual in order to
protect autonomy. Besides this, after the completion of joint venture the global joint venture is
useful for company in order to set up effective marketing or developing prominent presence
which is useful for the local foreign partner. Despite from this, the other company tends to
provide suitable knowledge for the prominent rules, laws, internal market and effectively
distribute acknowledgement. Moreover, joint venture is effective for company regarding the
expansion at international level which is useful for effective marketing tool and leads to make
suitable growth for the profitability and productivity (Rana and Morgan, 2019). Along with this,
companies also leads to operate their organisations at the global level by undertaking the specific
demand of nation which is useful in order to enhance the customer base and sales of company.
Therefore, it is useful to enhance the financial and economic condition of organisations.
Despite from this, joint venture is quite sustainable as it is less risky for having prominent
acquisition and undertake the capital investment. They also tends to provide effective flexibility
by focusing on the prominent situation and their changes undertaking the relations among the
market area (Prud’homme, 2019). Therefore, this tool is effective as for this, company need to
undertake prominent entry in new market by developing effective position with specific business
area.
Critically assess the benefits and challenges for the use of international joint ventures in foreign
market entry
According to Rooyen W. V., (2020), Global joint venture represent the suitable plan
which is less expensive approach for the global market area which can be accomplished by
having effective purchase for current organisation in management by commencing the new
enterprise. In regard of this, international joint ventures offer fast approach for having effective
allocation and offer prominent permission to the non-native companion and knowing about their
local market by enhancing the possibility for the success of company. In regard of this, the native
collaborator tends to offer effective connections regarding the main offerings to their customers
and considering effective skills for native speech and responsibilities. In relation with this, the

suitable benefits for the small size business that does not have suitable money and mandate skills
describing the chance which is able in order to share insecurity for the price by the company
including foreign joint venture. Moreover, international joint venture also tends to authorise the
effective collaboration which are cost effective and also have effective credit in domestic market
(Ratten, 2020). For this, the parties also tends to grasp prominent benefits for the harmonising
the prominent lines that exist among the two companies.
In regard of this, the global joint venture tends to persuade skills and also represent the
incompetence regarding the deficient which is enough for planning the process. In regard of this,
the prominent components undertake market evolution, technical issues, financial downturns and
so on which are quite hard to expect and also have impairing collision on international joint
ventures. Away with this, the prominent benefits which are obtained from global joint ventures
are quite weak in nature as they are shared. For this, the collaborators also leads to find
prominent things which they does not measure regarding the assumptions for the variable in
order to convert and also helpful for having prominent development of business (Kahiya, 2020).
Along with this, joint ventures also tends to complicated regarding the object of finance and bills
which are limited for their time and also tends to promise for the suitable joint venture by
enhancing the prominent level of risk for their venture. Moreover, the prominent drawback is the
possibility for the chance of the design of player and prospective of rivalry in terms of shaping
for the personal joint venture collaborator.
ANALYSIS AND DISCUSSION
The global business environment is multidimensional by undertaking the political risk,
cultural differences and exchange of risk. For this, all the prominent factors are undertaken as the
factor of PESTLE analysis. These elements tends to put huge impact on the running of business
and their activities. In relation with this, the political environment leads to indicate towards the
government, for having prominent relations with the businesses and undertake political risk for
nation. In terms of this, because of constant financial instability, the national authority motivate
organisations to develop job opportunities for domestic population. For this, ventures plays an
important role in order to generate employment in order to enhance the demand for the
commodities and diversifies workforce. Besides this, the economic factor leads to impact the
business considering the inflation that occur because of Brexit and COVID-19 that tends to
impact the economic system of company. Apart from this, social factors tends to impact the

cultural differences due to the operations of company at the global level undertaking the number
of individuals in terms of running venture that belongs from various cultures and regions.
Furthermore, company tends to make effective use of techniques of businesses at the
international level that positively impact organisations (Koveshnikov, Tienari and Piekkari,
2019). Besides this, there are various types of changes which are made by government and
considering the situation of COVID undertaking the trade, taxation and so on which is related
with business operations that tends to impact the specific business.
Trade leads to undertake the exchange of products and service among country. For this, they
tends to bought things for the nation and termed as import by sold it to another country as
exports. For this, the base for trade including internal or domestic and foreign or international
trade. Undertaking the international level there are various types of changes that occur for the
international trade and investment. They also tends to transfer the prominent technology
undertaking the trends that occur for the global investment. It effectively represent the activity
for the commercial technology by taking the form for the technology by transferring the
transactions which may or may not legally bind the contract and also undertake the suitable
communication for the effective knowledge of recipient (Chow and Schoenbaum, 2020). It also
leads to depict the emerging market that plays an important role for the international trading and
investment. They also tends to increase the prominent size for the current global trade that leads
to make things easy for the new generation regarding the innovative organisations. They also
tends to analyse prominent trading for various nations and international business environment by
considering the joint venture strategy which is important for company to take entry in business
environment and having prominent expansion in business.
It effectively represent various methods and strategy which is undertaken by the global
business venture in order to reduce risk which is being faced by operating businesses by
considering the option of joint venture. In order to recruit prominent talent, develop business
model and also have contingency plans they tends to add effective methods which is useful for
executing things at the international company. Besides this, by recruiting local individuals,
company leads to implement its business activities in terms of easy operations. They also
undertaken the purchasing power of customers by offering them prominent products as per the
needs. It is useful to manage risk for their customer base and low sales. Along with this, by
developing business models for the specific market company also leads to operate business in

effective way for the specific market and also offer effective structure to workforce undertaking
the risk of ineffectiveness of business that can be eliminated (Sinkovics and Sinkovics, 2019).
Despite from this, having contingency plan leads to offer prominent support of business
undertaking the suitable situation for risk as by this company tends to sustain in global business
environment.
Joint venture method is prominent for company in order to have suitable expansion to take
entry at the global business market by effectively offering various benefits. Moreover, the
partners also tends to offer effective for the local customers, allocation of benefits and also reach
towards the knowledgeable and well trained workforce. For this, partners tends to offer new
production capacity and products and this strategy is less risky for the type of merger by this, the
other type of merger effective fund the financial investment (TORSELLO and WINKLER,
2020). It also leads to offer flexibility for the local circumstances and undertake the market
relationship. It also tends to monitor various problems and issues when company leads to make
joint venture with other ventures and firms by effectively communicating with partners and the
level of expertise for the investment. Along with this, developing partnership with other
organisations tends to consume time in terms of making effective relations which is quite hard to
evade the issues. Along with this, the development and success is depends on the effective
planning and communication by describing the clear agreement which is essential for the
segmenting and developing effective partnership relations. Besides from this, there are various
workplace related issues which are faced by company for having effective operations at the
international scale undertaking the manufacturing, workforce and so on.
It effectively represent several concepts and various frameworks which are undertaken
for the management and global venture which is useful in order to manage the systematic
business operation and experiences in terms of motivating workforce and identifying the best and
effective development. For this, classical management and behavioural theory is helpful as these
are complex for prominent management at workplace. For this, classical management framework
is the old management concept that effectively focus on the operations and development of
standards to enhance production result (Pudelko and Tenzer, 2019). For this, the management of
company tends to undertake effective concept to develop and get prominent result and enhancing
their remuneration for high performing workers. Besides from this, behavioural theory also tends
to follow international organisations they tends to get rise for the human interest for the working

environment. For this, management theories undertake effective people and consider human
behaviour to fulfil the prominent needs and demand of employees for having effective
administration. For this, the manager for global organisations tends to practise behavioural
management theory in terms of motivating group work by fostering collaborative environment.
Away with this, joint venture depict the great way for making new business by which company
has the shortage of abilities and also helpful for businesses in terms of accessing the foreign
markets or eliminating risk for effective development of venture (Blackburne and Buckley,
2019). Therefore, it effectively represent the option which is opted by company with the
objective of taking entry in market by having heavy investment for effective use of economies of
scale.
CONCLUSION
Therefore, it has been summarised that the international business is an activity for the
suitable process in terms of operating and performing business action for the global business
environment and also tends to make effective development for the profit margin, customer base,
effective sales and productivity. Moreover, undertaking the joint venture for the market entry
ways, by which company tends to expand in an effective manner which is less risky. Besides
from this, undertaking the international scale by which companies tends to influenced by various
external business environment factors in diverse ways. In regard of this, company leads to
operate by international joint venture and then develop suitable position for the effective brand
image for the specific sector.

REFERENCES
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