Structuring an International Joint Venture in the European Union
Table of contents
1. Introduction ..………………………………………………………………….…... 3
2. General overview of international joint ventures ……………………………... 4
2.1 Main classification of joint ventures ……………………………………. 5
2.2 Structure of joint venture entity ………………………………………..… 5
3. Advantages and disadvantages of international joint ventures …………….. 6
3.1 Advantages of IJV ……………………………………………………….... 7
3.2 Disadvantages of IJV ……………………………………………………... 8
4. Planning an international joint venture ………………………………………... 8
4.1 Preliminary investigation …………………………………………………. 8
4.2 Planning the operation …………………………………………………… 9
4.3 Finalizing the operation …………………………………………………... 9
5. Antitrust issue ……………………………………………………………………... 12
6. Joint ventures in Poland …………………………………………………………. 13
6.1 Examples of international joint ventures in Poland ……………………. 15
7. Conclusion ………………………………………………………………………… 17
8. Bibliography ……………………………………………………………………….. 18
1. INTRODUCTION
Globalization has radically changed the way many European companies do business. Because of advances in communications, transportation, and technology, virtually every business of any size can now internationally distribute goods, services, or intellectual property.
Although dealing with international markets could be difficult, companies must be ready to overcome differences in legal and regulatory regimes, cultural norms, language problems, and currency issues especially in Member States where the Euro has not been introduced. Only the largest companies have the resources and experience to surmount these obstacles on their own. Many other businesses simply do not have the capacity to deal with all the variables in foreign jurisdictions without a partner organization. For this reason, many companies create an international joint venture (IJV).
In this project I will briefly examine the structure, the advantages and disadvantages of international joint ventures; the key contract provisions for creating them; and
1. Introduction ..………………………………………………………………….…... 3
2. General overview of international joint ventures ……………………………... 4
2.1 Main classification of joint ventures ……………………………………. 5
2.2 Structure of joint venture entity ………………………………………..… 5
3. Advantages and disadvantages of international joint ventures …………….. 6
3.1 Advantages of IJV ……………………………………………………….... 7
3.2 Disadvantages of IJV ……………………………………………………... 8
4. Planning an international joint venture ………………………………………... 8
4.1 Preliminary investigation …………………………………………………. 8
4.2 Planning the operation …………………………………………………… 9
4.3 Finalizing the operation …………………………………………………... 9
5. Antitrust issue ……………………………………………………………………... 12
6. Joint ventures in Poland …………………………………………………………. 13
6.1 Examples of international joint ventures in Poland ……………………. 15
7. Conclusion ………………………………………………………………………… 17
8. Bibliography ……………………………………………………………………….. 18
1. INTRODUCTION
Globalization has radically changed the way many European companies do business. Because of advances in communications, transportation, and technology, virtually every business of any size can now internationally distribute goods, services, or intellectual property.
Although dealing with international markets could be difficult, companies must be ready to overcome differences in legal and regulatory regimes, cultural norms, language problems, and currency issues especially in Member States where the Euro has not been introduced. Only the largest companies have the resources and experience to surmount these obstacles on their own. Many other businesses simply do not have the capacity to deal with all the variables in foreign jurisdictions without a partner organization. For this reason, many companies create an international joint venture (IJV).
In this project I will briefly examine the structure, the advantages and disadvantages of international joint ventures; the key contract provisions for creating them; and
Bibliography: 1. Baudino A., Fabris P.; Lecture: Structuring an International Joint Venture; 13-14 November 2008. 2. “Economy of Poland”; Wikipedia. The Free Encyclopedia. 3. Ehrlich P., Stewart R; “International Joint Ventures: A Practicum”; ACC Docket, June 2006. 4. “Fiat in three Polish Joint Ventures”; Transport Europe; November 1992. 5. “Joint Ventures in Poland”; Polish Agency for Enterprise Development (PAED); Poznan, 10 November 2005. 6. Miller R., Glen J., Jaspersen F., Karmokolias Y.; International Joint Ventures in Developing Countries; Finance & Development; March 1997. 7. Motta M.; Competition Policy – Theory and Practice; Cambridge 2004. 8. “New Joint Venture to Promote Poland”; The Sunday Business, 1 July 2007. 9. Reid I., Freeman S.; “Foreign Market Entry: Success versus Failure”; Working Paper 43/04; Monash University; September 2004.