5 Prospice Mentis University（PMU）is a prestigious private institution and a member of the Holly League,which is made up of universities based in Rosinante and renowned worldwide as being of the highest quality.Universities in Rosinante have benefited particularly from students coming from Kantaka,and PMU has been no exception. However,PMU has recognised that Kantaka has a large population of able students who cannot afford to study overseas.Therefore it wants to investigate how it can offer some of its most popular degree programmes in Kantaka, where students will be able to study at a significantly lower cost.It is considering whether to enter into a joint venture with a local institution or to independently set up its own university site in Kantaka.

　　Offering courses overseas would be a first from a Holly League institution and indeed from any academic institution based in Rosinante.However,there have been less renowned academic institutions from other countries which have formed joint ventures with small private institutions in Kantaka to deliver degree programmes.These have been of low quality and are not held in high regard by the population or the government of Kantaka.

　　In Kantaka,government run universities and a handful of large private academic institutions,none of which have entered into joint ventures,are held in high regard. However,the demand for places in these institutions far outstrips the supply of places and many students are forced to go to the smaller private institutions or to study overseas if they can afford it.

　　After an initial investigation the following points have come to light:

　　1.The Kantaka government is keen to attract foreign direct investment（FDI）and offer tax concessions to businesses which bring investment funds into the country.It is likely that PMU would need to borrow a substantial amount of money if it were to set up independently.However,the investment funds required would be considerably smaller if it went into a joint venture.

　　2.Given the past experiences of poor quality education offered by joint ventures between small local private institutions and overseas institutions,the Kantaka government has been reluctant to approve degrees from such institutions.Also the government has not allowed graduates from these institutions to work in national or local government,or in nationalised organisations.

　　3.Over the past two years the Kantaka currency has depreciated against other currencies,but economic commentators believe that this may not continue for much longer.

　　4.A large proportion of PMU‘s academic success is due to innovative teaching and learning methods,and high quality research.The teaching and learning methods used in Kantaka's educational institutions are very different. Apart from the larger private and government run universities,little academic research is undertaken elsewhere in Kantaka‘s education sector.

　　Required:

　　Discuss the benefits and disadvantages of PMU entering into a joint venture instead of setting up independently in Kantaka. As part of your discussion,consider how the disadvantages can be mitigated and the additional information PMU needs in order to make its decision.

　　（20 marks）