What do you acknowledge by joint ventures?

Dear student,

Joint venture is jointly formed by two or more organisations for mutual benefits. 

Following are some of the benefits of joint venture:
* A joint venture provides scope of growth and expansion as the resources of organisations are pooled together a form a venture.
* A venture between a foreign and domestic company widens the market for business.
* A joint venture can easily obtain new technology by pooling finances from individual units.
* Each company involved in the venture can be benefited from the brand name of other company.
* Foreign company can take advantage of cheap labour availability from domestic company, on the other hand domestic company can take advantage of foreign technology.

Some of the disadvantages associated with Joint venture are: 
* As the companies involved in joint venture shares ownership, the control of each unit gets limited.
* The involvement of different cultures may lead to lack of integration and cooperation.


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