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Wordcount: 3792
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strategic vs operational differences between Joint Ventures
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Abstract
At the heart of things, firms enter foreign markets for various reasons. These reasons/factors are because of:
„X Better interaction or closeness to foreign customers;
„X Foreign production costs can be kept down. For example access to cheaper labour, land;
„X Transportation costs may render bulk products non-competitive;
„X Guaranteed supply of raw materials;
„X Tariffs can prevent entry of an exporter¡¦s products;
„X Increase profits;
„X Test unknown environments;
„X To open up new markets;
„X Protect foreign and/or local markets
„X Government restrictions could present a problem.
Once the company¡¦s objective or reasons have been set, the next stage is deciding on an appropriate entry method. Of the many methods avai
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