International management

The quest to develop a global outlook and create a huge profit range in the world today is based on the availability and the overall outlook of the business in the global scale. The global developments and the global phenomenon that is meant at fostering the business outlook in the outside world is based on various factors that necessitate such move. Introduction One of the key issues that are currently applicable to the development of a global scale and making the business go international is the utilization of International Joint Ventures (IJCSs). This report aims to recreate the meaning of the International Joint Ventures, the circumstances under which the Multinational Enterprises (MNEs) can apply the International Joint Ventures and the various multinational corporations that have used the International Joint Ventures criterion to establish themselves in the business world.

International Joint Ventures The application of the international joint venture is gaining popularity in the present world. The application of the interaction joint ventures will provide the way that the business will work together without any hiccups. That is the reason behind the application of the law and the legality issues that will bind the development and the success of the joint business venture in the global business environment. There are basic elements that are needed to facilitate the smooth running and the smooth application of international joint ventures in the business world. These basic elements are what is created by the law and which will lead to the development, and the overall success of the international joint ventures time weight.

One of the basic elements that will create the effectiveness and the applicability of the international joint ventures are the contractual agreements4. There is also the method that shows how the business will deal with the shared profits, any risks that might felt in the business, the management and also the control structure for the business. The specifications of these will help ensure that all the deeds and characteristics that the business will employ will be of highly beneficial to the entire scale. The circumstances under which MNEs internationalize using IJVs The application of the international joint ventures by an organization is based on various factors which necessitate the multinational enterprises (MNES) to apply it as a business method. One of the key factors that necessitates the application of this method is the quest to expand the business.

Most of the businesses who want to expand to other countries may consider the same of the IJVs as a method of entering into new sites. The general profit making of the business is deemed important in the business, and a business with many branches is deemed more profitable and can amass large profits wavelength in the business. (Yiu, Daphne, and Shige Makino, 2002)9. Moreover, the same concepts help the business to enter the competitive global scale. Competition is a key instrument in the business setting, and it is a perfect method that creates a more robust way of engineering success in the business community. Therefore, the use of international joint ventures enables the business to be more engraved in managing extensive competition in the business environment10.

However, its products are consumed internationally. The technological company in the recent past has been on the verge of increasing branches to deal with the high-end competition that is currently in the technological world12. Sony is primarily known for the development of the games that are consumed across the globe today. Play Station 4 and PlayStation Viva are some of the high-end games that have been created by the company which has put it among the top games in the world. However, the competition in the industry is quite large and hence there is a need for more prudent marketing techniques to apply to create and arrive at the more profitable sale. The success of these two giant technological companies in China is based on the development of the legalities that were formed that made up the two companies.

The promulgation of the deal was based on various agreement that allowed the two businesses to develop bylaws and policies that will allow for the two countries to enjoy success from the provisions of the inoculation. The same also provided one of the most elaborate methods of following the law and becoming legally constituted companies and the law that factors the two companies were created. Everything was considered on the deal which binds how the business should run, how the profits, losses and any other risks ought to be dealt with in the organization and also the developments that will allow for a robust way of solving any issue that may arise in the joint venture15. The two companies have enjoyed massive success out of their deal, and it has projected sales way higher than the two giant techs had anticipated.

Many factors contributed to these failures that were registered by the International Joint Ventures. One of the key reasons that have been extensively noted is the failure of Groupon Inc. to conduct a feasibility study on the dynamism in the Chinese market. The company only based itself on the existing American market and it attempted to use the developments in the American market to determine the same in the Chinese market. The company was also faced with a lack of identity in the Chinese market; it also failed due to the cross-cultural differences in the Chinese market. "Socio-cultural distance and the choice of joint ventures: a contingency perspective. " Journal of International Marketing 2, no. Beamish, Paul.  Multinational joint ventures in developing countries (RLE International Business).