PERFORMANCE ISSUES IN US CHINA JOINT VENTURES

Based on an in-depth study of U.S.-China joint ventures, this article offers some insights into the performance of such international busine ss relationships. While the conventional literature treats government as an amorphous aspect of the political-legal environment, in this cas e government is an active participant and influence in the performance of international joint ventures (IJVs). It has both a constraining an d enabling effect on LN structure, strategy, and performance. For exam ple, limits can be placed on ownership shares of joint ventures and on prices of the output. At the same time, government can cooperate with IJVs and foreign parent companies by creating partners for foreign pa rent companies, acting as major customers, and improving financial per formance by lowering taxes.