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Write the names of enterprise which is set up as a consequence of partnership between companies.also point out why this companies enter into such partnership

Posted by Riya Riya 5 years, 7 months ago

CBSE > Class 11 > Business Studies

1 answers

Gaurav Seth 5 years, 7 months ago

Joint Venture

1. Since the local partner also contributes to the equity capital of such a venture, the international firm finds it financially less burdensome to expand globally.

2. Joint ventures make it possible to execute large projects requiring huge capital outlays and manpower.

3. The foreign business firm benefits from a local partner’s knowledge of the host countries as regards to competitive conditions, culture, language, political systems and business systems.

4. In many cases entering into a foreign market is very costly and risky. This can be avoided by sharing costs and/or risks with a local partner under joint venture agreements.

1Thank You

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