Article Abstract:
Factors influencing foreign ownership of joint ventures in China were determined using transaction cost analysis. Among the factors identified as crucial in determining a foreign investors involvement in a joint venture were sociocultural differences, economic risks and industry conditions. The duration of the commitment and the dollar amount of foreign investment also supported the applicability of transaction cost framework in determining the foreign ownership of joint ventures in China.
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Article Abstract:
There has been very few empirical evidence to account for the success of international joint ventures in developing economies. A study is done to identify the elements beneath foreign joint ventures in China. The sample of the study is derived from 2,442 joint ventures registered with the Ministry of Foreign Economic Relations and Trade from 1979 to 1990 and 383 joint ventures recognized by the China Assn. of Enterprises with Foreign Investment.
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Article Abstract:
Research shows that the success of equity joint ventures in China depends upon their location.
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