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Globalization and International Management - Assignment Example

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The objective of this assignment is to outline the fundamental principles of managing international companies. The writer will also discuss the aspects of expanding a domestic company into a multinational business such as managing restrictions and establishing distribution…
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Globalization and International Management
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Since 100 % stake is not possible while doing business in other countries, a considerable stake can be given to the company in the joint venture, as a business strategy.
Protection of own technology is important in the joint venture, various policies of the state may not fit the business liabilities of international companies but stay lenient towards the domestic ones. In such cases, wherein a joint venture the domestic company gets more authorities can easy get the technological secrets of the other company.
The plan was to negotiate the domestic company to start up the joint venture where our company will have to make least compromises in terms of government restrictions, so as to establish sales, distribution and retail networks.
The plan had to be modified when the point of sharing technology came, sharing technology has always been a risk with other company in their own state. This was overcome by maintaining the standards of top management level by giving them extensive training to act as the top management in the joint venture.
The other company can be influenced only if they sense gain in their own business. So, things will go easier when both the companies negotiate towards mutual benefit from each other’s countries and that will truly be actual globalization. Read More
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