Joint Ventures

e. Joint Ventures: A joint venture represents a direct investment in which two or more firms share ownership of a new company in a foreign country. Forms of joint ventures include

two firms from one country joining together in a foreign market, a foreign firm joining with a local firm, companies from two or more countries establishing a joint venture in a third country, a private firm and a local government forming a joint venture, a private firm joining a government-owned firm in a third country.

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f. Equity Alliances: An equity alliance represents a collaborative arrangement in which

at least one of the collaborating firms takes an ownership position (usually a minority) in the other(s).

3. Wholly owned subsidiaries (no collaboration is involved): The MNE owns 100% of its foreign operations. This entry strategy can be accomplished in two ways: acquisitions, or greenfield investments.

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