Prospects of International Joint Ventures in Emerging Economies

Abstract

Joint Venture and Emerging Economies, Problems and Future Perspective

In these days, the International Joint Venture (IJV), which is an equity-based cooperation between organisations from various nations, is an essential and popular organisational structure of the Multinational Corporation (MC). As many businesses form international joint ventures (IJVs) to expand their businesses by successfully utilising their own or their allies' resources and core capabilities. Moreover, worldwide joint ventures are hailed as a way for businesses to have entry to resources and experience while also expanding globally. The global economy is currently beset by numerous issues, such as rise of new powers, competing in a new era of globalization and making forecasting the future extremely challenging. However, when compared to other types of partnerships, such as mergers and acquisitions, the nett worth of joint ventures is rapidly increasing. From this point of view, the study must critically review the prospects for joint ventures in international emerging economies and evaluate their alliance and must investigate many instances from various industries in depth. In This research it will be compared and analysed the performance of Joint venture as one of the most common types of Foreign Direct Investment (FDI) investments. Several different intercompany modes of interaction and alliances will be investigated and analysed, in order to quantify the weight of factors influencing compatibility of firms involved in joint venture. Based on result, the study will be developed based model that can be used by project management teams of future Joint ventures in emerging economies.