Joint venture

1,148 views

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,148
On SlideShare
0
From Embeds
0
Number of Embeds
3
Actions
Shares
0
Downloads
54
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Joint venture

  1. 1. Inputs<br />Share of Profit<br />Joint Venture<br />HOME COUNTRY<br />HOST COUNTRY<br />MNE<br />Local Firm<br />Share of Profit<br />Inputs<br />Joint Venture Company<br />
  2. 2. Joint Venture<br />Advantages<br />Access to partner’s local knowledge<br />Reduction of concern about overpayment<br />Both parties have some performance incentives<br />Significant control over operation<br />Disadvantages<br />Potential loss of proprietary knowledge<br />Potential conflicts between partners<br />Neither partner has full performance incentive<br />Neither partner has full control<br />When Is a Joint Venture Appropriate?<br /><ul><li>Both partners contribute hard-to-measure inputs
  3. 3. Large expected mutual gains in the long-run
  4. 4. Trade secrets can be walled off</li>

×