Joint Venture

• 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
  • Training
  • Foreign relations

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© 2004 John Michael Pierobon

Notes