Economics and Business Review

ISSN 2392-1641
e-ISSN 2450-0097

Poznań University of Economics - Poland

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Volume 12 Number 4 pp. 5-13

Jan ANDR&#196,

Technische Universit&#
2

2

8
;t Dresden, Germany

Institution for risk sharing : international joint venture

Abstract: International joint venture as a form of business organization has become quite important in the post-liberalization period. Although an international joint venture has an independent legal status, it is organized for the joint benefit of the foreign and local firm. An international joint venture, defined as an agreement about revenue and cost-sharing rules, can be designed to enhance the level of foreign direct investment under the presence of economic risk. For example, foreign direct investment in economies in transition and emerging markets may be discouraged by fluctuations in the value of local currency or market risk when the entire revenue is generated through local sales. We argue that a properly designed joint venture scheme between an international firm (source country) and a local partner (host country) may resolve such an economic incentive problem. (original abstract)
pub/2012_4_5.pdf Full text available in in Adobe Acrobat format:
http://www.ebr.edu.pl/volume12/issue4/2012_4_5.pdf
Keywords: Joint ventures, Foreign investment, Contract theory, International trade, Joint ventures, Inwestycje zagraniczne, Teoria kontraktów, Handel międzynarodowy

For citation:

MLA ANDR&#, Jan. "Institution for risk sharing : international joint venture." Economics and Business Review EBR 12.4 (): 5-13.
APA , (). Institution for risk sharing : international joint venture. Economics and Business Review EBR 12(4), 5-13
ISO 690 ANDR&#, Jan. Institution for risk sharing : international joint venture. Economics and Business Review EBR, , 12.4: 5-13.