In light of the influence of the WTO with respect to the relaxation of restrictions on foreign ownership across many industries in countries such as China and India, anecdotal evidence suggests that many companies are now opting to set up wholly-owned subsidiaries (WOS) rather than Joint Venture Companies (JVCs).
Given what you can learn from the available literature, select a country where foreign ownership rules may influence the choice of market entry mode and using this country as the context of your research, please provide:
In part a) 10%, you should provide a brief appraisal of the changes made with respect to levels of allowable foreign ownership in China/India country as a result of accession to the WTO and reflect on the potential implications of these changes.
In part b) 45%, you should critically discuss valid reasons for companies to favour WOS rather than JVC. Reasons could be (but should not be restricted to): JVCs are too difficult to manage, the foreign company would have complete control over the operation if 100% owned, etc.
In part c) 45%, you should identify the reasons why a JVC is still an appropriate and advantageous market entry mechanism. Reasons could be (but should not be restricted to): JVC enables easier access to local knowledge and connections, government regulations etc.
The object of the question is to debate the issues, i.e., IJV versus WOS as effective mechanisms for market entry, rather than to show hard evidence of an actual trend. Therefore, there should be evidence of a good level of analysis, comparing and contrasting the arguments on both sides.
Additional Note: Please ensure the work provides logical, in-depth and critical discussion supported by evidence. Credit will be given for the use of practical examples and/or case studies to demonstrate your arguments.
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