Joint ventures occur when a company forms a partnership with a foreign firm to develop new products

Joint ventures occur when a company forms a partnership with a foreign firm to develop new products

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Joint ventures  occur when a company forms a partnership with a foreign  firm to develop new products or to give each other access to local markets. Normally,  the roles and responsibilities of each organization are clearly spelled out in the joint- venture agreement. This approach increases both control and risk.  Global strategic partnerships  are much larger than a simple joint venture.  Two firms join together and make a long-term commitment, in the form of time and  investments, to develop products or services that will dominate world markets. This  approach does not modify products for a particular market but develops a single  product market strategy that can be utilized in all markets in hopes of dominating the  worldwide market for that product.  Wholly-owned subsidiaries  occur when a firm purchases either controlling  interest or all of a foreign firm. Often, the subsidiary firm is given considerable 
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