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I will pay for the following essay International Business management: Continental Cablevision / Fintelco Joint Venture (UVA-F-1149 Darden School case). The essay is to be 8 pages with three to five so
I will pay for the following essay International Business management: Continental Cablevision / Fintelco Joint Venture (UVA-F-1149 Darden School case). The essay is to be 8 pages with three to five sources, with in-text citations and a reference page.
Thus before making an entry into a foreign market, the firm has to consider two strategic decisions – the level of control over the local engagement and the mode of entry. Various factors like investment costs, market size, difference in technologies, market structure and competition intensity affect the market choice. In larger markets acquisition is more favorable (Muller, 2007). Cross border deals were very high 1979 and 1985. Findings suggest that US firms rely a great deal on joint ventures. Studies further suggest that 15% of the joint-ventures end in the first two years and about 50% are dissolved in the first six years. Joint ventures are close substitutes for assets sale and they are merely an intermediate form between hierarchy and markets that permit firms to overcome information asymmetries at low cost. Many MNCs decide on joint ventures when entering a country where political risks are high. They require the local partner to be well equipped for dealing with host governments. Joint ventures may perhaps be time-consuming and initially difficult, but yields optimum results both for the foreign firm and the local company offering partnership (Gross, 1995). The major advantage in joint ventures is sharing of risks and the ability to combine local knowledge with a foreign partner with know-how in technology or process.
Foreign investments can be in three forms – foreign direct investments, indirect foreign investments and official loans. FDI includes investments in physical assets such as plant and machinery and it is based on an equity ownership of at least ten percent (Forfas, 2002). The main types of FDI are acquisition of a subsidiary or production facility or participation in joint venture, licensing and establishing of Greenfield operations. FDI involves transfer of knowledge and technology. The FDI has an influence on the host country’s productivity.
Continental was looking for investment opportunities in countries that were