Global Expansion of Major Corporations [ READ ]
Sultan Gashgari
Many multinational enterprises are under intense pressure to expand their overseas operations due to globalization. To achieve this, these companies have formed international alliances with other related companies abroad. Many global companies are employing joint venture to expand in international markets. Among the companies using this strategy include Wal-Mart, which has collaborated with the Brazilian company, GrupoGarantia. Such an action is driven by the desire to access other markets located outside the borders of parent countries. Joint ventures are essential in cases where Direct Foreign Investment face strict restrictions. When a country's government employs total direct investment, a corporation can work together with an established venture in the same industry. Such an investment ensures that a multinational company is selling its outputs and inputs in that market. Enterprises can also expand their market globally through partnership. This discussion looks into the reasons behind the adoption of joint ventures as the preferred strategy to enter international markets.
Sultan Gashgari
Many multinational enterprises are under intense pressure to expand their overseas operations due to globalization. To achieve this, these companies have formed international alliances with other related companies abroad. Many global companies are employing joint venture to expand in international markets. Among the companies using this strategy include Wal-Mart, which has collaborated with the Brazilian company, GrupoGarantia. Such an action is driven by the desire to access other markets located outside the borders of parent countries. Joint ventures are essential in cases where Direct Foreign Investment face strict restrictions. When a country's government employs total direct investment, a corporation can work together with an established venture in the same industry. Such an investment ensures that a multinational company is selling its outputs and inputs in that market. Enterprises can also expand their market globally through partnership. This discussion looks into the reasons behind the adoption of joint ventures as the preferred strategy to enter international markets.
