mergers and joint ventures

Question 1

what is a joint venture

Answer 1

where two or most firms work together on a joint project

share profits in the venture

Question 2

what is a merger

Answer 2

where two or more firms from different countries agree to become a single business

Question 3

why does a business choose to become merger or joint venture

Answer 3

spears risk

effects of a downturn in one country’s market are likely to have small impact as sales in other firms markets may not fall as much or may even rise

access to different markets
avoid govermmnment restrictions

securing resources and supplies

can give access to help it secure supplies of raw materials and other resources

one of the firms in the joint venture or merger amy have good business relationship with a particular supllier, which other firm may want

Question 4

intellectual property

Answer 4

includes copyrights and parents for intentions

patent held by one from prevents others from copying its work for certain period of time

could merge into well known international brand name meaning can gain customers who are already loyal to exiting brand