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Marketing Management Class Discussion wk6 - Essay Example

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It tries to analyze how business partnership is influenced by the host nations. In forming business ventures, the host countries usually develops laws and regulations that tend to favor local firms…
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Marketing Management Class Discussion wk6
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Marketing Management MARKETING MANAGEMENT International joint partner selection was an article by Oliver and Roy in 2009. It tries to analyze how business partnership is influenced by the host nations. In forming business ventures, the host countries usually develops laws and regulations that tend to favor local firms. These laws often provide them with a larger percentage of the company shares in products production. Through the data collected and analyzed by the article, it negatively affects partner relationship due to variations in costs of production rather than equity.
Thus, this constitutes unfair trading terms between the partners which are as a result of legal terms that are imposed by the host country. The other partner is viewed as an outsider and will have to spend more if they are to operate in the market. However, these disputes can be resolved by conciliation between the business partners or an agreement between the countries so that they provide favorable trading terms to the affected parties.
Nevertheless, there must be a mutual agreement between the two nations if investments are to increase in the future. By an outsider partnering a local company, they increase the level of investment and improve productivity of the country. This investment creates more jobs to the population and helps the economy to grow (Cravens, & Piercy, 2008). Hence, the host nation will benefit more even if it is indirectly. Thus, they should provide the other partner with equal rights so that they share costs and profits equally. They will be motivated and increase their bilateral ties that are beneficial in the future.
References
Cravens, D., & Piercy, N. F. (2008). Strategic marketing. McGraw-Hill Irwin. Read More
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