Chapter 13 - Entry Modes
10. How can a company control a joint venture if it only has a minority share of the equity?
It may be able to use such options as management contracts, supermajority voting requirements,
11. What is the difference, if any, between a joint venture and a strategic alliance?
A joint venture is a cooperative effort among two or more organizations that share a common interest in a
2 GlobalEDGE Answers
Exercise One
1. Entrepreneur magazine annually publishes a ranking of America’s top 200 franchisers seeking
international franchisees. Provide a list of the top 10 companies that pursue franchising as a mode
of international expansion. Study one of these companies in detail and provide a description of its
business model, its international expansion pattern, the qualifications it looks for in its
franchisees, and the type of support and training it provides.
Answer:
http://globaledge.msu.edu
Exercise Two
2. You are working for a computer manufacturer that is planning to set up an assembly unit in
Uruguay to serve the region. Since this would involve importing parts from other countries and
then exporting the finished products throughout Latin America, top management has requested
information on the trading practices of Uruguay. In particular, these managers want to know: 1)
the average time to clear both imports and direct exports through Customs; 2) the percentage of
losses from direct export due to theft, as well as, breakage; and 3) the percentage of firms
identifying Customs and trade regulations as a major constraint. Using Enterprise Surveys, a site
provided by the World Bank, that measures business perceptions of the investment climate,
prepare a brief executive report summarizing your findings. How does Uruguay compare to other
countries in Latin America on these measures?
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