Problem
Working in small groups, discuss and write down the group's answers to each of the following questions. At the end of the exercise the group presents its answers to the other groups for comment.
I. What are the differences between control contracts and coordination con- tracts? What is the aim of using each type of contract in an IJV and what are the dangers?
II. What motivates international companies to form joint ventures with partners in less developed parts of the world? Give examples.
III. How do international companies choose potential IJV partners in less developed parts of the world? What selection criteria are they likely to use?
IV. An Irish manufacturer of electronic control equipment is about to enter into negotiations with a Canadian company to form an IJV to carry out joint product development and R&D activities. What are the most important negotiating issues that will have to be addressed in the initial negotiations? List these in order of priority.