Alto electronico and Gutwerken compete against each other in the international electric instrument industry. Alto electronico is based in Mexico City and Gutwerken in Berlin, Germany. Alto electronico is going to invest heavily in new production facilities in Germany. Of the following list, which is most likely the motivation for this FDI?To enter into a joint venture with GutwerkenTo force Gutwerken to spend less on global investment in order to spend more on their own local german operationsTo learn more about the highly efficient German Business practicesTo compete with Gurwerken for lucrative contracts from the German government

Alto electronico and Gutwerken are two companies in international electric instrument industry. They are compete each other at international market for capturization of market shares. Alto electronico is based on mexico city and Gutwerken is based on berlin , germany. Alto is going to invest new production facilities in germany. Of the following list, which is most likely the motivation for this FDI To enter into a joint venture with Gutwerken To force Gutwerken to spend less on global investment in order to spend more on their own local german operations To learn more about the highly efficient German Business practices To compete with Gurwerken for lucrative contracts from the German governmentTo enter into a joint venture with Gutwerken: Alto elecctinco is go with join ventures is best. Because alto heavily invest for production and new to in that country which will difficulty to target spending more monetary on promotion. If the company up with joint venture this reduces the cost and no needed promotion more . It will hope that market accepted. Gutwerken have already company in germany which help to more caputrixation in this way both the companies are benefited. Suppose suzuki make joint venture with maruti and make indian biggest car manufacturing company and highly sales vehicles also. As like if we both are merge and provided complete services to germany both the companies well profitable and creating growth of companies also. So if join the benefits are: access to new markets and distribution network increased capacity sharing of cost and risk with a partner use your join ventures partners customer database to market your product.