Continuing the article on entering international markets

B. Example of Two International Companies Joining for Business in a Third Market: Ford and
Volkswagen teamed up in 1987 to form Autolatina in an effort to sell cars in South America. Autolatina produced vehicles that were based on Ford and Volkswagen designs but marketed through each respective manufacturer’s distribution channels. The advantages of such an agreement include the increased resources and expertise gained by each participant as well as the shared risk between the companies.

The obvious drawback of this type of joint venture is that neither company may have an existing foothold in the third market. In this regard, the process may be similar to starting a business from the
ground up, which is extremely costly and time consuming. The remaining disadvantages are similar to other types of joint ventures in that both companies will lose some management control, some profits, and some intellectual property during the agreement.

C. Example of an International Company and a Government Entity: this is a lesser-used mode of joint venture. This type of agreement has been used extensively by the various states of the former Soviet Union. Tengizchevroil is a joint venture between Chevron and Kazakhstan to produce, refine, and transport oil for both domestic use and sale abroad. The oil is located in Kazakhstan and Chevron has the expertise and equipment to run the entire operation.
The advantages for Chevron include a virtually unhindered access to the market, ease of licensing and tax benefits. The advantages for Kazakhstan are just as obvious. The former Soviet republic gets expert production of its oil, newly created jobs, and profits.
The disadvantages to Chevron include the hardships in dealing with the unstable political, economical, and legal framework; the difficulty in accessing the pipeline for transport, and the extremely high and uncertain export taxes on oil leaving Kazakhstan. Chevron might also have to deal with a government that is not concerned with profit. In other words, Kazakhstan may not care about keeping production high so long as oil is being produced.

[tags] Market Entry, International business consultant, international business videos, what is international marketing, china podcast, international business podcast, global podcast, international marketing, international marketing tools, strategy, market research, international research, planning, international business, off shoring, outsourcing, Global business, marketing, business planning, marketing abroad, strategic consulting [/tags]


  1. Whats up this is kinda of off topic but I was wondering if blogs use WYSIWYG editors or if you have to manually code with HTML.
    I’m starting a blog soon but have no coding knowledge so I wanted
    to get advice from someone with experience.

    Any help would be greatly appreciated!

  2. Hey there! Someone in my Myspace group shared this website with us
    so I came to look it over. I’m definitely enjoying the information. I’m book-marking
    and will be tweeting this to my followers!
    Great blog and fantastic design.

  3. I really love your site.. Very nice colors & theme. Did you develop this website yourself?
    Please reply back as I’m wanting to create my very own website
    and would like to find out where you got this from or exactly what the theme is called.

  4. It’s a shame you don’t have a donate button! I’d without a doubt donate
    to this outstanding blog! I suppose for now i’ll settle for bookmarking and adding your RSS feed to my Google account.

    I look forward to fresh updates and will talk about this
    site with my Facebook group. Talk soon!

  5. Just wish to say your article is as surprising. The
    clarity for your put up is just excellent and that i could assume
    you’re knowledgeable in this subject. Well with your permission allow me to grasp your
    feed to keep updated with coming near near post. Thank you a million and please carry
    on the gratifying work.

  6. hi!,I really like your writing so so much!
    share we be in contact extra approximately your post on AOL?
    I need an expert in this house to solve my problem.
    Maybe that is you! Taking a look ahead to look you.


Please enter your comment!
Please enter your name here