Joint ventures(JVC) vs. wholly owned enterprises(WHOES) review of current trends
Joint ventures(JVC) vs. wholly owned enterprises(WHOES) review of current trends

Summary/Abstract: The increasing globalization of business, the opening of traditionally closed markets, and the emergence of innovative organizational forms have heightened concerns over issues relating to international entry strategies. While the process of internationalization raises a number of issues for a company, such as the choice of product market, the form of governance and the partnering strategy, the provided analysis in this coursework will focus on the influence that the relaxation of restrictions on foreign ownership had on the entry strategy of companies across many industries. Specifically, the analysis is made on the preferences of companies regarding the entry mode in international markets: a wholly-owned enterprise (WHOEs) vs. an international Joint Venture (JVCs). The analysis is focused on countries like India and China, due to the fact that these countries attract the highest amount of FDIs, are seen as the most attractive foreign markets for the future, have been marked by heavily regulated FDI market in the past and have introduced extensive changes in the requirements regarding ownership structure of foreign direct investments (UNCTAD 2009a).The purpose is to provide a comprehensive analysis of the reasons that have led to the change in preferences in the market entry strategies of companies and to critically discuss the relative advantages and disadvantages of JVCs versus the WHOEs as an entry mode.

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