Discuss the differences and the benefits of joint ventures, branch offices and foreign subsidiaries.

Discuss the differences and the benefits of joint ventures, branch offices and foreign subsidiaries.

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Expert Solution

One of the major advantage with joint ventures is that it enables your business to grow a lot faster and also get to generate greater profits on the whole. Some other benefits of joint ventures include access to new markets and distribution networks and increased capacity.

One of the biggest advantages of establishing foreign subsidiaries is that the operational and strategic control can be enhanced and established in the foreign market with the help of these subsidiaries. Another benefit is that is less risk of losing intellectual property to the competition because the parent can implement common data access and security protocols on the whole.A subsidiary is a separate legal entity unlike the branch offices where the liabilities are limited to the subsidiary

A branch office is not a separate legal entity but a part of the parent company where the liabilities extend to the parent company.. The major advantage of branch offices is to ease the process of business proceedings and to attain maximum amount of customer satisfaction.

Rahul Sunny answered 1 year ago

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