formation of Joint venture

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Joint ventures: Joint ventures may mean many things, depending upon

the context we are using it in. But in a broader sense, a joint venture is the

pooling of resources and expertise by two or more businesses, to achieve a

particular goal. The risks and rewards of the business are also shared. The

reasons behind the joint venture often include business expansion,

development of new products or moving into new markets, particularly in

another country.

Benefits: Business can achieve unexpected gains through joint ventures

with a partner. The major benefits of joint venture are as follows:

(i) Increased resources and capacity (ii) Access to new markets and

distribution networks (iii) Access to technology (iv) Innovation (v) Low cost

of production (vi) Established brand name.