In the 21st century, many organizations feel compelled to partner for expansion, particularly in an international situation. Options include exporting or licensing one’s intellectual property in a low...

In the 21st century, many organizations feel compelled to partner for expansion, particularly in an international situation. Options include exporting or licensing one’s intellectual property in a low risk exercise where royalties can have high profit margins. In addition, franchising can provide very lucrative continuous cash flow opportunities as a fraction of the franchisee’s revenue. Why do companies engage in joint ventures when there exist many other forms of nonequity options for expansion?