Collaborative ventures became a popular entry strategy in the 1980s. Describe the two major types of international collaborative ventures and explain the benefits of this internationalization approach

What will be an ideal response?

A collaborative venture is a form of cooperation between two or more firms. Collaborative ventures are classified into two major types: equity-based joint ventures that result in the formation of a new legal entity; and project-based strategic alliances that do not require equity commitment from the partners but simply a willingness to cooperate in R&D, manufacturing, design, or any other value-adding activity. In both cases, collaborating firms pool resources and capabilities and share risks to carry out activities that each might be unable to perform on its own.