Discuss four reasons for the increase in International Joint Venture Essay

Discuss four reasons for the increase in International Joint Venture arrangements and support your analytic thinking with specific examples from any concern sector - Essay Exampleventures are often formed between two entities to achieve certain economic design and after achievement of such objectives they are often liquidated. Joint ventures are common in different industries and are formed for different purposes as only the parties to the Joint venture contribute one way or another for the purpose of achieving the objective. Joint ventures are therefore important in the sense that their constitution all in allows companies to utilize each others strengths in achieving the desired strategic objectives.There are various benefits that organizations can derive from join ventures including sharing of engine room and R&D facilities, developing new markets and sharing of risks spread over different markets as well as the expansion into new markets. However, despite the point that i nternational joint ventures offer such benefits but their failure ratio is significantly larger because most major international joint ventures failed to perform.This paper exit discuss different reasons as to why international joint ventures are formed and potential benefits they provide to respective organizations by citing example from different business sectors where International joint ventures have actually been formed.In general, a joint venture (JV) is an association of two or more entities (whether corporate, government, individual or otherwise) combining property and expertise to carry out a single business enterprise and having a joint proprietary interest, a joint salutary to control and a sharing of profits and losings.(Vaughan, 2009).The above definition indicates that a joint venture can be formed between different entities irrespective of their legal status by taking benefit from each others expertise and property to perform a single business objective. However, al l the entities in the joint venture also settle for gaining joint right to control the venture as well as share profits and losses arising out of taking that business activity.It