FDI and Collaborative Ventures

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  1. 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.
    1. Explain the objectives and risks of internationalizing through collaborative ventures.
    2. 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.
    3. What type of European partner should Aoki seek?
  1. Describe the four primary challenges faced by retailers when they expand overseas. Provide examples of mistakes made by retailers in foreign markets.
  2. Discuss four strategies that managers can employ in order to increase the chances of a successful collaborative venture.
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