national millennium. However, some businesses paired up together and then realized that they lacked knowledge of the other's market or technology. An article in Management Today suggests that in recent years companies that were floundering and hoped to rebound looked to a joint venture as an opportunity to increase their market share. However, they found themselves put together with a similar sufferer in a foreign country and the results were disastrous ("Joint ventures can make for vulnerable parents" 12). Nevertheless, joint ventures are still a favored solution for companies trying to expand geographically. For many companies, the joint venture may be the only way to break into a foreign market with any possibility of 'hitting the ground running.' It might be possible for a company to successful in a new market without forming a strategic alliance, but many companies believe the risks are simply too high if they don't have a local partner that can guide them around the local problems and guide them toward profitable business. Author Haiyang Chen comments that risk in a joint venture (JV) is usually limited to the initial investment (Chen 309).
Concerns over Carnival's financial control systems will have to be factored into the decision on how to manage the joint venture. The work performed by the company formed in the JV will be carried out in Trinidad and Tobago. Payment will be made in Trinidad and Tobago. Tracy Bertman warns that when doing business international, companies like ADL must be sure that their accountants and attorneys are well-versed in international finance. ADL needs to know exactly how it will be taxed on income both domestically and in Trinidad and Tobago. ADL's accountants and bankers need to offer advice about whether exchange rate fluctuations could lessen the joint venture's profits (Bertman 29).
Internationally, there are two strongly held opposing views on the appropriate treatment of join...