2. A Joint Venture is the Three main reasons to
participation of two or establish a joint
more companies to venture:
achieve a common 1. Government suasion
goal. or legislation
2. One partner’s needs
for other partner’s
skills
3. One partners needs
for other partner’s
attributes or assets
3. In JV companies share the losses and profits
in the transaction or transactions.
1. Contractual arrangement
2. Specific limited purpose and duration
3. Joint property interest
4. Common financial and intangible goals and
objectives
5. Share profits, losses, management and
control
4. The foreign Party The local Party
Business advantages to May share similar
a foreign party seeking goals with the foreign
a local business party. party such a reduction
of costs and risk.
5. 1. Fully integrated
2. Network
3. Production
4. Marketing and
distribution
5. Purchasing
6. Research and
development
6. Financial resources can be shared
Joint Ventures allows for investor
diversification
Joint Ventures allows for direct management
of business activities
The competitive strength of two parties can
be combined
Economic incentives add value to JV
7. Joint Venture profits are shared
Shared technologies can be used beyond the
Joint Venture
Local management of a Joint Venture can be
unknown
8. Corona / Eternit : Compaña suramericana de
ceramica
Ford / Mazda : The auto alliance international
9. Aba Section of Antitrust Law. "Joint
Ventures." books.google.com.co. Google.
2006. Web. 28 March 2013
Gutterman, Allan. "A Short Course in
International Joint
Venture." books.google.com.co. Google.
2002. Web. 28 March 2013
Czincota, Michael. "Fundamentals of
International Business." books.google.com.co
Google. 2009. Web. 29 March 2013
