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Breaking Up is Hard To Do. Edition No. 1

VDM Publishing House, Feb 2009, Pages: 136


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Richard Caves (1998) states that “dead business units
tell no tales” (p. 8), and by extension one could
argue that dead business relationships also tell no
tales. However, it is the purpose of this book to
tell the tales of dead business relationships in hope
that other businesses can learn from their mistakes.
Business relationships are a vital part of business.
With the globalization of the economy businesses
will have some form of international contact. For
businesses with limited resources or no experience
often the most efficient means to expand their reach
overseas is to enter into a business relationship.
This study examined the variables most connected with
the propensity of business relationships to dissolve.
The results suggest that variables such as size of
the parent firms, political stability, market
sophistication, number of partners, number of CEOs in
the joint venture and average years of experience in
the host country all seem to have the greatest impact
on joint venture propensity to dissolve. The study
also offers several suggestions for business looking
to establish international joint ventures.



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