International Joint Ventures (IJVs) combine the resources of local and foreign firms to create independent business entities that are able to avoid the risks of cross-border transactions and to gain access to new markets. Despite these advantages, the failure rate of IJVs is very high. This book takes a theoretical approach to the lifecycles of IJVs. Game theory is used by the author to foresee potential problems that may be caused due to conflicting and co-operating elements in the formation, management and termination processes of IJVs. Using rigorous theoretical tools including bargaining, contract/incentive theory and repeated games, the author suggests solutions to the problems predicted.
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