When Businesses Cross International Borders: Strategic Alliances and Their Alternatives

By Harvey S. James Jr.; Murray Weidenbaum | Go to book overview
Save to active project

4
Building and Buying Overseas Operations

A well-established and still popular method for securing a business presence abroad is for a company to buy or build production and distribution facilities in a foreign country. Indeed, despite the attention to strategic alliances in the popular literature, most overseas operations of U.S. manufacturing multinationals in developing countries are wholly owned. 1 So are the divisions of most U.S. companies operating in Europe. 2 Of the high-growth companies belonging to the American Business Conference, fully onethird entered foreign markets through either the construction of new facilities or the acquisition of existing ones. 3

The primary exception occurs when the host country places restrictions on the extent of ownership by foreign businesses. These may be formal investment barriers, less formal but often equally powerful barriers in the form of tax breaks to competing local companies, and local content laws requiring local producers to use locally made supplies. 4 For these reasons, in Asia and in Eastern Europe joint ventures and other strategic alliances are the dominant modes used by foreign companies attempting to develop a presence in local markets (see chapters 5 and 6).

In some circumstances, a host government may be will

-48-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited page

Bookmark this page
When Businesses Cross International Borders: Strategic Alliances and Their Alternatives
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen
/ 136

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?