Thesis: Global Strategies-Joint Venture and Direct Investment

Sample Thesis Paper

Joint ventures are another strategy that can be employed. The circumstances that can catalyze this kind of strategy encompass government regulation, risk and rewards sharing between the partners, partners learn form one other, shared technology and product development. Among the problems that limit this strategy is likelihood of mistrust among the partners, organization culture classes, lack of parent firm support, knowledge spillovers and conflict of interest. The main strengths of this strategy include combination of resources reduces the individual cost burden, ownership limitation and cultural distance is overcome.

According to Williams (2005), direct foreign investment involves where the production facilities to a target economy. The technology and all other capital are transferred to the target country. A firm may buy the whole production facility in the target country of build a new one. A major strength of this strategy is that a firm has all the control over the production, low chances of knowledge spillover maintain the organization culture however, a heavy investment is required.

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