Business Studies, asked by Jagadeeshreddy8308, 11 months ago

The benifits of joint ventures with foreign companies.

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Answered by ronalrenny
2

Answer:

What are the Advantages of forming a Joint Venture?

1.Provide companies with the opportunity to gain new capacity and    expertise

2.Allow companies to enter related businesses or new geographic markets or gain new technological knowledge

3.access to greater resources, including specialised staff and technology

4.sharing of risks with a venture partner

5.Joint ventures can be flexible. For example, a joint venture can have a limited life span and only cover part of what you do, thus limiting both your commitment and the business' exposure.

6.In the era of divestiture and consolidation, JV’s offer a creative way for companies to exit from non-core businesses.

7.Companies can gradually separate a business from the rest of the organisation, and eventually, sell it to the other parent company. Roughly 80% of all joint ventures end in a sale by one partner to the other.

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