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The Key Term And Why You Are Interested

Decent Essays

Discussion Board # 4
Johan Rivera
Liberty University
KEY TERM and WHY YOU ARE INTERESTED IN IT This academic paper will be exploring the key term, joint ventures. This concept is of interest because in today’s business environment due to the economy downfall, many organizations recourse to this strategy in order to easily infiltrate in a foreign market. Companies are seeking more opportunities to expand their market share and a joint venture is an attractive option to do so. Getting involved with a foreign market come with several obstacles and challenges. It is for the same reason that organizations engage in a joint venture whit a partner that knows and understand the culture and preferences of that specific nation.
EXPLANATION OF THE KEY TERM “Join ventures usually involve an alliance where two or more companies contribute assets, which results in the formation of a new legal entity” (Satterlee, 2014, p. 228). Whit this strategy companies can do business in international markets but have a partner that will ease the process by helping with the start-up and management of the new corporation. Organizations will be able to compete in a foreign market in a cost-effective and successful way. This strategy can increase the profit of an organization, however, if effective planning is not incorporated, it can be a major failure that will result in profit loss.
MAJOR ARTICLE SUMMARY In the article, “Understanding Performance of Joint Ventures: Modeling the Interactional

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