Entering international markets part 7 more on international business
D. Example of Two or More International Companies for a Limited Duration Project: a very popular mode. This mode can be demonstrated best by considering a construction project in Turkey. Bechtel Group established a joint venture with Enka Insaat va Sanayi to construct the 229-kilometer Ankara-Gerede Highway in Turkey. The agreement outlined the duties each in regards to:
financing, project management, procurement, hiring, design, subcontracting, and administration.
The advantages include shared risk and expertise and increased resources. An excellent by-product of this agreement is the upgraded skill level of the countrymen as a result of the work. The Ankara-Gerede Highway project employed nearly 6,000 Turkish workers, some of which arrived not knowing how to drive a car and left as expert operators of multimillion-dollar equipment.
The drawbacks are similar to other joint ventures along the lines of shared profits, loss of complete control, and potential loss of intellectual property.
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