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A special type of strategic alliance in which the partners share in the ownership of an operation on an equity basis is known as joint venture. In a joint venture company foreign investors join with local investor and they share ownership and control. This type of ownership is very popular among international companies and in which a company is owned by more than one organization. For example coca-cola and nestle joined to develop international market for “ready to drink’ tea and coffee. The foreign firms might lack financial, physical, or managerial resources to undertake the venture alone; or the foreign government might want a joint ownership as a condition of entry. It may be required for economic or political reasons. Having the advantages joint ownership has some disadvantages. The more companies involved, the complex is the ownership arrangement. The partner may dislike over investment, marketing, or other policies. One partner may like to reinvest earnings for growth, and the other may want to declare more dividends. The main disadvantage is that the joint ownership restricts multinational companies from carrying out specific manufacturing and marketing policies in the worldwide basis. Certain types of companies favor joint ventures more than others do. The companies that are new at foreign operations and those are decentralized domestic decision making and very often multiproduct companies tend to favor joint ventures. Because these companies are accustomed to extending to control downward in their organizations, it is easier to them to do same thing internationally (Kotler, 2008).

Licensing in another form may result in a lower additional capital resource commitment than a joint venture will and in this case licensor use manufacturing process, trademark, patent, trade secret or other item of value or fee or royalty of a foreign company. In addition acquiring and selling process and product technology along with turn key contact can in collaboration with foreign companies.

Internally the decision to mode of entry is influenced by the firm’s own objectives and strategies (Daniels & Radebaugh, 2002). Companies have a wider choice of operating form where there is less likelihood of competition. Experienced MNE decides which country to enter according to its capabilities, specific product characteristics and foreign operating characteristics. Triad firms and MNEs firm are mutually interested in using these strategies because of their advantages. Companies must focus on their strategies and objectives that they want to achieve. To do so companies arrange it function so as it can use minimum resources and policies effectively. Indeed the selection of entry mode in emerging market is basically restricted by local environmental conditions and is dominated by green field investment and joint ventures which in terms yield more unpretentious opportunities than acquisitions. It is considered that acquisition plays an important role in the small business due to its better institutional development compared to the other firms. 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。