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Global Logistics_Discussion 2

Global Logistics_Discussion 2

Q What are the advantages and disadvantages of using a subsidiary rather than a joint venture for a firm interested in manufacturing abroad?

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The advantages of using subsidiary against a joint venture for companies looking for endeavors in manufacturing abroad is that strategies and operations of business can be conducted by a firm with exclusivity in absence of sharing profits or policies with any other company. Subsidiaries can be regarded as entities that are more secure not risking internal change much in buyouts risk or operations and objectives as joint ventures tend to do. Firms are permitted by a subsidiary to directly relate with customers in absence of having to rely for information linked to customers on outside information sources.