How to Spot an Excellent International joint venture Strategy

There are a number of good reasons why many foreign companies (usually Multi-National and Trans National Corporations) go for an international joint venture with a domestic/local business. Sharing the capital, human resources, technology, rewards and risks, it compliments both parties in terms of business growth and development. Given the fact that international joint venture offers a very attractive opportunity for companies, it is very important that before taking the risk, trust, mutual understanding, and the will to adjust to evolving problems, is established between both parties.

Joint venture in developing countries, to a certain extent, has helped boost the economy of developing nations as they gain access to new marketing ideas, strategy and technology. In one activity assessing the joint venture negotiations in developing countries, some of the problems that arose during the negotiations were transparency, conflict resolution, tax issues, ownership and control problems, division of management's responsibility, marketing and staffing issues and problems related to multinationality. Thus, it is imperative that a suitable agreement is formed and that all terms and conditions must be scrutinized and thoroughly discussed.

Furthermore, in a study of manufacturing consumer electronic products in India, it showed that in the early stages of the venture, the new formed business was successfully flowing like water. However, in the latter stage, unanticipated, unforeseen problems occur such as their terms and conditions with export. The incident further implicates that as you go along, new evolved problems rise and negotiations need be regular to avoid disputes between the venturers.

On the final analysis, international joint ventures opens the window of for a lot of opportunities which can excite domestic companies tremendously. However, the difficulties and complications attached to the process poses a challenge. To be able to sustain the new formed business, flexibility, mutual aid and cooperation are the 101 to get the job done.


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Rivers Corbett
Founder - MyRewardsBiz.com

"Award Winning Entrepreneur and Joint Venture Specialist, Rivers Corbett and Financial Engineer, Doug Anderson, have teamed up to offer an exclusive and exciting opportunity to a limited number of entrepreneurs who are looking to steer clear of the typical ''Get Rich Quick'' hype and build a solid business of * lasting *significance. Click on http://myrewardsbiz.com for more information.