- A joint venture brings together your firm and a foreign company with similar goals to establish a market entry and a distribution network.
- Each partner brings specialized skills and contributes to the endeavor.
- Each partner makes a substantial investment into the venture.
- Joint ventures are often set up because:
- In some countries, a joint venture is the only way a foreign company can set up operations.
- Some countries require a citizen from that country to have a percentage of ownership.
- Tax laws are advantageous to foreign investments through joint ventures.
- Unlike licensing, a joint venture requires direct involvment in:
- Managing the joint venture
- Foreign relations
© 2004 John Michael Pierobon