4.2.4 global mergers + joint ventures

• businesses may choose these methods of reaching a new market as they may be more cost-effective than exporting, licensing and franchising
• global merger

  a permanent agreement between two businesses from two different countries to join together
• joint ventures

  when two businesses join together to share their knowledge, resources and skills to form a separate business entity for a limited period of time
• do this to...

  • access new markets/trade blocs
  • benefits from skills/expertise and resources
  • share risks
  • gain brand recognition, patents
  • allow to compete other big businesses and/or reduce it