Companies International Alliance: International Joint Venture

Introduction Over the past two decades, the League of Nations has become the core of the company's competition and growth strategy (Kale and Singh, 2009). However, the churn rate of the alliance has been reported to exceed 50% (Lunnan and Haugland, 2008). This paper aims to critically study the reason why the success rate of the International Joint Venture (IJV) is low. Definitions Glaister, Husan, and Buckley (2004, 1 page) describe IJV as "two or more legally different organizations (parents) who invest in the business (children) and actively participate in decision- ) "Is defined. entity. "

Once a joint venture crosses the border, it becomes an international joint venture. The international joint venture is defined as a joint venture involving companies in different countries that cooperate between border and culture boundaries. (Aimin and Yadong, 2001). An international joint venture is made up of two companies in the same country, but it may be outside its home country. (Geringer and Hebert 1989). Cost and risk sharing: One of the main reasons for joint venture is cost reduction and risk sharing. It helps to achieve synergies through streamlined employment and other fixed costs, as well as research and development projects such as pharmaceuticals, electronics, aviation engines and telecommunications. Joint ventures are often used for capital-intensive projects such as power plants and infrastructure projects.

This article presents examples of joint ventures that failed and failed. It also highlights important information on important aspects of each country's joint venture. The joint venture is still very popular, and international companies are generating much more every day. Therefore, knowledge of this article will help you better understand the challenges associated with most joint ventures. Another interesting finding that one topic is consistent is that if there is a market barrier like in Japan or if the risk level recognized is high like Russia or China, the joint venture will be the first It seems to be a choice. There is little information on joint ventures among companies in developed countries. This indicates that the joint venture is not a major means to expand for most companies. This does not mean that they will not happen or not recommend it, which means that they are less popular