reasons for global mergers or joint ventrues

Merger

2 or more businesses agree to join together to form a single company

Joint venture

Two or more companies collaborate to share resources risks and profits in a specific project or operation

Temporary

Spreading risk

Entering international markets allows businesses to diversify,reducing the risk of downturns into their home country

Ciontunes income into company

Entering new markets and Trade blocs

Avoid trade barriers- removes them

Saves time-automatically bypass and enter market

Acquiring brand names/patterns

Acquiring intellectual property enhances brand recondition in new markets and provides access to unique products

Securing resources and supply’s

Backward vertical integration sallows a business to control key supplies potentially preventing competitors from accessing them

Level of sales increases

Maintaining/ increasing global competitiveness

Increasing output can enhance economies of scale,reducing unit costs and improving global competition

• porters, if ur the lowest cost producers you have competitve advantage, control prices