Explain the Risks of the Joint Venture Entry Mode
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Explain the Risks of the Joint Venture Entry Mode
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- Define strategic alliance and joint venture, and explain why companies would choose these options over a merger or an acquisition.Compare and contrast acquisition of a foreign firm and licensing in terms of growthprospects and risks.SECTION B Read the following extract and then answer the question belowTwo business entities come to you for assistance and they would like enter into a stock agreement supply. The other is a manufacturer and one is a retailer. It is their fist time to be committing to such a huge business arrangement and they both realise that it is important to do it right because as much as it looks like a great business deal, should it fail to work, it can lead to serious business losses that can even lead to liquidation and litigation. All they ask for is to be advised on the essentials of a valid business contract, and the need to explain conditions for compensating parties for breach of contract. In doing that, it is important to quote relevant authorities. Evaluate how the two enterprises need to be assisted.