what are the disadvantages of joint ventures what are the disadvantages of joint ventures what are the disadvantages of joint ventures Solution A joint venture (JV) is a business arrangement by which, two or more entities make an arrangement by which they share assets, expertise & technology to execute a particular business venture. The parties to a JV share the liabilities and profits together. A JV can be a short-term arrangement, made to cater to a specific project only. However, there may be some disadvantages to a JV, as follows. 1) A cross-country JV has the main issue of cultural difference. It is often difficult for partner entities from different countries with different cultures, to operate efficiently enough as to create positive synergy. 2) The goals and objectives of the JV partners may not agree, which may create a friction & conflict of interest going ahead. 3) Efficient sharing of responsibilities is a pivotal aspect in a JV, in absence of which, the arrangement may collapse. 4) A JV works best in presence of perfect communication flow with no barriers, which is rarely achieved in real life. 5) Sharing of resource may be uneven, or perceived to be sub-optimal, by one or more of the partners. 6) A final disadvantage of a JV is the dispute resolution process. Due to shared responsibilities, authorities and functioning, a conflict is more difficult to get resolved, since its resolution depends on multiple levels and locations of the JV organization hierarchy..

1. what are the disadvantages of joint ventures
what are the disadvantages of joint ventures
what are the disadvantages of joint ventures
Solution
A joint venture (JV) is a business arrangement by which, two or more entities make an
arrangement by which they share assets, expertise & technology to execute a particular business
venture. The parties to a JV share the liabilities and profits together.
A JV can be a short-term arrangement, made to cater to a specific project only.
However, there may be some disadvantages to a JV, as follows.
1) A cross-country JV has the main issue of cultural difference. It is often difficult for partner
entities from different countries with different cultures, to operate efficiently enough as to create
positive synergy.
2) The goals and objectives of the JV partners may not agree, which may create a friction &
conflict of interest going ahead.
3) Efficient sharing of responsibilities is a pivotal aspect in a JV, in absence of which, the
arrangement may collapse.
4) A JV works best in presence of perfect communication flow with no barriers, which is rarely
achieved in real life.
5) Sharing of resource may be uneven, or perceived to be sub-optimal, by one or more of the
partners.
6) A final disadvantage of a JV is the dispute resolution process. Due to shared responsibilities,
authorities and functioning, a conflict is more difficult to get resolved, since its resolution
depends on multiple levels and locations of the JV organization hierarchy.