16 International joint venture. Scottish and Newcastle breweries (a real UK company) have joint ventures with United Breweries in India, Chongquin (the fifth largest brewer in China) and Baltic Beverages and Holdings in Eastern Europe.

a Explain how the joint venture can enable Scottish and Newcastle breweries to achieve its objective of maximizing shareholder wealth.

b Explain how the joint venture can limit the risk of the international business.

c Many international joint ventures are intended to circumvent barriers (business and cultural) that normally prevent foreign competition. What barriers might Scottish and Newcastle breweries be circumventing as a result of the joint venture?