fdi and collaborative ventures
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- Case analysis: Suppose you work for Aoki Corporation, a producer of processed foods. Your boss, Hiroshi Aoki, heard there is a big market for processed foods in Europe but does not know how to enter or do business there. You recommend entering Europe through a joint venture with a local European firm. Answer the following to be discussed with Mr. Aoki.
- Explain the objectives and risks of internationalizing through collaborative ventures.
- Explain why a collaborative venture might be a better entry strategy than wholly owned FDI. Keep in mind that processed food is a culturally sensitive product that entails various complexities in marketing and distribution.
- What type of European partner should Aoki seek?
- Describe the four primary challenges faced by retailers when they expand overseas. Provide examples of mistakes made by retailers in foreign markets.
- Discuss four strategies that managers can employ in order to increase the chances of a successful collaborative venture.
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