What are some of the advantages and potential disadvantages of entering a joint venture?

Identify the various ways of entering the global marketplace. Firms use the following strategies, in descending order of risk and profit, to enter global markets: direct investment, joint venture, contract manufacturing, licensing and franchising, and exporting. Questions 4.1 , an upscale manufacturer of lamps and lampshades in America, has decided to “go global.” Top management is having trouble deciding how to develop the market. What are some market entry options for the firm? 4.2 Explain how the U.S. Commercial Service can help companies wanting to enter the international market. 4.3 What are some of the advantages and potential disadvantages of entering a joint venture? 4.4 Why is direct investment considered risky?


 

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