Joint Ventures

Question 1

Benefit of joint Venture 1

Answer 1

Legal requirement, 50% ownership

Reduces total profits that can be earned in that market

Question 2

Benefit of joint venture 2

Answer 2

Local knowledge
Skills experience, distribution
Adapt closer to local tastes
Increase prices and increase market share

Question 3

Benefit of joint venture 3

Answer 3

Access to materials and suppliers

Reduced unit cost

Question 4

Benefit of joint venture 4

Answer 4

Spreading costs spreads risk

Leader to EOS

Question 5

Drawbacks of joint ventures 1

Answer 5

Share profits

Question 6

Drawbacks of joint ventures 2

Answer 6

Unreliable partners and clash of cultures

DEOS

Question 7

Define joint ventures

Answer 7

Two companies make a third with separate identity