Question

Benefit into joint venture public private partnership

Answer 1

Answer:

Benefits of joint ventures are :

1.Reduces competition : When two companies join together, it results in reducing the competition as instead of wasting resources in competition they will strengthen their organisation.

2.Reduces risk : High risk involved in new and innovative ventures can be reduced when two companies join together to share the risk.

3.Advanced technology : By joining hands with foreign companies, Indian companies can get the benefit of advanced technology.

4.Large capital : In joint ventures, two companies together contribute capital. As a result, large capital can be arranged without much difficulty.

5.Reduction in cost: When two firms join together, they can operate on a large scale and get the benefit of economies of scale hence reduces cost of production and marketing.

Explanation:

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Answer 2

Answer:

A joint venture is a business agreement in which two or more organizations come together for mutual benefits and gains. Business organizations in a joint venture share not only the physical, financial, and human resources available but also the risks and profits of the business.

The following are some of the benefits for a company entering into a joint venture:

(a) Increased resources and capacity: In a joint venture, the resources and operational capacities of the individual business are pooled.

(b) Access to new markets and distribution networks: Entering into a joint venture with an enterprise located in another region widens the market base for each of the individual enterprises.

(c) Access to technology: Through a joint venture, a company can acquire new and modern technology more easily with less investment and less time and effort compared with the technology that individual enterprises may be able to acquire working independently.

(d) Innovation: A joint venture, especially with a foreign partner, gives a company access to new ideas and technology which help in the innovation of new products. These new products enable businesses to sustain themselves in today’s complex and competitive market.

(e) Low cost of production: The costs of raw material and labor, etc., are very low in India compared to other countries. Thus, international corporations that enter into joint ventures with Indian companies reap huge benefits.