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53
 Wdeoh := Iluvw0Vwdjh Lqyhvwphqw Ghflvlrq= Elqrpldo Orjlw Prgho

+4, +5, +6, +7, +8, +9,

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+314<<, +31535, +31545, +31556, +3155:, +31556,
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+3133:, +3133:, +3133:, +3133;, +3133;, +3133;,
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+4136h06, +4139h06, +4144h06, +4169h06, +416;h06, +4168h06,
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54
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flhqw hvwlpdwhv lq wkh P)D dqg MY froxpqv lqglfdwh d uhodwlyh lqfuhdvh ru
ghfuhdvh lq wkh olnholkrrg ri wkdw rzqhuvkls prgh ehlqj fkrvhq dv frpsduhg

55
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wr wkh up0vshflf fkdudfwhulvwlfv1 Wkhvh uhvxowv vxssruw wkh prgho*v jhqhudo
suhglfwlrq wkdw kljkhu up dvvhwv ohdg wr d juhdwhu olnholkrrg ri juhhqhog
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wr lqyhvw yld P)D1 Wkh yduldeoh wkdw phdvxuhv wkh krvw*v srwhqwldo P)D0
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56
 Wdeoh ;= Vhfrqg0Vwdjh Lqyhvwphqw Ghflvlrq= Pxowlqrpldo Orjlw
Prgho

+4, +5, +6,

P)D MY P)D MY P)D MY
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+315;6, +3154;, +315<;, +3156<, +315<<, +31573,
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+3133;, +31339, +3133;, +31339, +3133;, +31339,
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+416;h06, +4137h06, +417:h06, +4157h06, +4178h06, +415<h06,
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+31336, +31338, +31335, +31339, +31336, +31339,
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+31383, +3137:, +31388, +31385, +31388, +31385,
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+816<h07, +7138h07, +9147h07, +7184h06,
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+61<6<, +61333, +61;74, +51<84,
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Frqvwdqw 0417;:d 0314:< 0513<;e 03173: 0518;7f 41645

+31833, +316<5, +4135<, +31::9, +4174:, +413;7,
Rev1 886 884 884
OU whvw 8418; 4491<6 4541;5
Sure A "5 31333 31333 31333
Svhxgr U5 31435 31436 31443

Qrwhv= Edvh fdvh lv Juhhqhog Lqyhvwphqw1 Vwdqgdug huuruv lq sduhqwkhvlv1 @ /K /S 0vljqlfdqw

dw wkh 4(/ 8( dqg 43(0ohyhov/ uhvshfwlyho|1

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pdunhw vl}h zlwk HfrqSrwhqwldo1 Wklv fkdqjh grhv qrw dhfw rxu suhylrxv

57
uhvxowv iru wkh up0vshflf lq xhqfhv/ dv wkh frh!flhqwv rq Vl}h/ SuhyI0
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: Frqfoxvlrqv
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lv frquphg lq rxu hpslulfdo dqdo|vlv xvlqj up0ohyho Mdsdqhvh gdwd1 Wklv
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wkh sdwwhuq ri iruhljq gluhfw lqyhvwphqw1

58
; Gdwd Dsshqgl{
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59
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^48` Kruq/ K1 dqg M1 Ohylqvrkq +5334,1 Phujhu srolf| dqg wudgh olehudol}d0
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5:
^49` Kruq/ K1> Shuvvrq/ O1 +5334,/ Wkh htxloleulxp rzqhuvkls ri dq lqwhuqd0
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^4:` Kruvwpdqq/ L1M1/ Pdunxvhq/ M1U1 +4<<5,/ Hqgrjhqrxv pdunhw vwuxfwxuhv

lq lqwhuqdwlrqdo wudgh +qdwxud idflw vdowxp,/ Mrxuqdo ri Lqwhuqdwlrqdo
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α2
45°

α = (3−2γ)α1/(1+2γ)
J* 2

G*

α1

Figure 1: Joint venture vs greenfield

α2
45°

α = (3−2γ)α1/(1+2γ)
J 2

M1
G
M2

α1

Figure 2: Joint venture vs merger vs greenfield