Discuss four reasons for the increase in International Joint Venture Essay

Discuss four reasons for the increase in International pin Venture arrangements and support your analysis with specific examples from any business sector - Essay Exampleventures argon often create between two entities to achieve certain economic objective and after attainment of such objectives they are often liquidated. Joint ventures are common in different industries and are form for different purposes as all the parties to the Joint venture contribute one way or some other for the purpose of achieving the objective. Joint ventures are therefore important in the sense that their formation allows companies to utilize for each one others strengths in achieving the desired strategic objectives.There are various benefits that organizations can come in from join ventures including sharing of technology 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 fact that planetar y junction ventures offer such benefits but their failure ratio is significantly larger because most major international vocalize ventures failed to perform.This paper will discuss different reasons as to why international colligation 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 hit business enterprise and having a joint proprietary interest, a joint right to control and a sharing of profits and losses.(Vaughan, 2009).The above definition indicates that a joint venture can be formed between different entities regardless of their legal status by taking benefit from each others expertise and property to perform a single business objective. However, all 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