What are the benefits of entering into joint venture?

1. Greater resources and Capacity - In a joint venture the resources and
capacity of two or more firms are combined which enables it to grow
quickly and efficiently
2. Access to advanced technology - It provides access to advanced
techniques of production which increases efficiency and then helps in
reduction in cost and improvement in quality of product.
3. Access to New Markets and distribution network - A foreign co. gain
access to the vast Indian market by entering into a joint venture with
Indian Co. It can also take advantage of the well established distribution
system of local firms.
4. Innovation - Foreign partners in joint ventures have the ideas and
technology to develop innovative products and services. They have an
advantage in highly competitive and demanding markets.
5. Low Cost of production - Raw material and labour are comparatively
cheap in developing countries so if one partner is from developing country
they can be benefitted by the low cost of production.
6. Well known Brand Names :- When one party has well established brands
& goodwill, the other party gets its benefits. Products of such brand
names can be easily launched in the market.
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