Year 11 Exam  >  Year 11 Notes  >  Business Studies for GCSE/IGCSE  >  Joint Ventures & Licensing

Joint Ventures & Licensing | Business Studies for GCSE/IGCSE - Year 11 PDF Download

Overcoming Problems of Entering Foreign Markets

  • Businesses often utilize two prevalent strategies to address the challenges of entering new markets: global mergers and joint ventures.
    • A global merger involves two businesses from different countries coming together under an agreement.
    • Joint ventures entail two businesses pooling their knowledge, resources, and expertise to establish a distinct business entity.
      • For instance, the mobile network EE resulted from a joint venture between the French mobile network Orange and the German mobile network T-Mobile.
  • These strategies may offer a more cost-effective approach compared to other methods such as exporting, licensing, or franchising.

Reasons for Mergers or Joint Ventures

Joint Ventures & Licensing | Business Studies for GCSE/IGCSE - Year 11

  • Risk Diversification:
    • Operating across multiple markets reduces dependence on any single geographic market.
  • Market Entry:
    • Utilizing mergers or joint ventures expedites market entry compared to organic growth.
    • In emerging economies, governments often mandate foreign businesses to operate via joint ventures, benefiting domestic firms.
    • Collaborating with local companies through joint ventures facilitates access to local market knowledge and business operations.
  • Acquisition of Intellectual Property:
    • Patents grant legal rights to individuals or businesses for making, using, or selling an invention, while excluding others.
    • Developing intellectual property is typically a time-consuming and costly endeavor.
    • Mergers or acquisitions provide avenues for accessing intellectual property or businesses with strong reputations.
  • Supply Chain Security:
    • Joint ventures with suppliers enhance the availability of scarce resources crucial for manufacturing processes.

Question for Joint Ventures & Licensing
Try yourself:
What is the benefit of utilizing joint ventures in entering foreign markets?
View Solution

Evaluating Global Mergers & Joint Ventures

Joint Ventures & Licensing | Business Studies for GCSE/IGCSE - Year 11

The document Joint Ventures & Licensing | Business Studies for GCSE/IGCSE - Year 11 is a part of the Year 11 Course Business Studies for GCSE/IGCSE.
All you need of Year 11 at this link: Year 11
Are you preparing for Year 11 Exam? Then you should check out the best video lectures, notes, free mock test series, crash course and much more provided by EduRev. You also get your detailed analysis and report cards along with 24x7 doubt solving for you to excel in Year 11 exam. So join EduRev now and revolutionise the way you learn!
Sign up for Free Download App for Free
70 videos|94 docs|25 tests

Up next

FAQs on Joint Ventures & Licensing - Business Studies for GCSE/IGCSE - Year 11

1. What are the common problems companies face when entering foreign markets?
Ans. Some common problems companies face when entering foreign markets include cultural differences, legal and regulatory challenges, competition from local businesses, language barriers, and difficulties in building a local customer base.
2. Why do companies opt for mergers or joint ventures when entering foreign markets?
Ans. Companies may choose mergers or joint ventures when entering foreign markets to gain access to local expertise, resources, and distribution channels, reduce risks and costs, share technology and knowledge, and overcome regulatory barriers or restrictions.
3. How can companies evaluate global mergers and joint ventures effectively?
Ans. Companies can evaluate global mergers and joint ventures effectively by conducting thorough due diligence, assessing the compatibility of cultures and strategies, analyzing the financial implications, considering legal and regulatory issues, and developing a clear integration plan.
4. What are the benefits of entering foreign markets through joint ventures or licensing agreements?
Ans. Entering foreign markets through joint ventures or licensing agreements can provide companies with local market knowledge and expertise, access to established distribution networks, reduced financial risks, shared costs and resources, and faster market entry.
5. What are some key factors companies should consider when forming joint ventures or licensing agreements in foreign markets?
Ans. Some key factors companies should consider when forming joint ventures or licensing agreements in foreign markets include selecting the right partner, defining clear objectives and responsibilities, establishing effective communication channels, addressing potential conflicts and disputes, and ensuring compliance with local laws and regulations.
70 videos|94 docs|25 tests
Download as PDF

Up next

Explore Courses for Year 11 exam
Related Searches

mock tests for examination

,

Joint Ventures & Licensing | Business Studies for GCSE/IGCSE - Year 11

,

shortcuts and tricks

,

video lectures

,

Sample Paper

,

study material

,

pdf

,

Free

,

Viva Questions

,

practice quizzes

,

Joint Ventures & Licensing | Business Studies for GCSE/IGCSE - Year 11

,

MCQs

,

Previous Year Questions with Solutions

,

ppt

,

Important questions

,

Summary

,

Semester Notes

,

Joint Ventures & Licensing | Business Studies for GCSE/IGCSE - Year 11

,

past year papers

,

Objective type Questions

,

Exam

,

Extra Questions

;