Structuring International Co-Operation Between Companies

This study presents both a theoretical and a practical analysis of the ways in which independent enterprises co-operate internationally, particularly by means of bi-national horizontal groups of companies. The first part of the book gives a detailed account of the legal and economic rationale behind the internationalization of enterprises and of the various legal techniques employed in structuring international co-operation. These issues are discussed in the context of economic theories on internationalization and of socio-economic and company-cultural problems facing these groups of companies. The second part presents an in-depth practical analysis of three types of co-operation structures and includes detailed case studies of both attempted and successful group formations. The authors highlight the legal and economic advantages and disadvantages of legal mergers, corporate joint ventures and horizontal-group formation. They conclude that the formation of groups of companies is determined mainly by legal motives, whereas economic motives influence the decision of enterprises to grow externally.