Studds, the leading India-based manufacturer of bi-wheeler helmets, was at an impasse in joint venture negotiations with Nolan of Italy. The partially-implemented joint venture between the two companies appeared a perfect match. Studds had a considerable cost advantage in the production of helmets and Nolan had formidable marketing strengths. At issue is whether Studds should continue to pursue or terminate the final joint venture negotiations. This case should be used in an international business course to illustrate issues central to internationalization and problems inherent in partnering where the risks of the joint venture are substantial to both firms.
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