Joint venture is in fact a form of partnership which may be between individuals, companies, or governments for attaining certain goals or projects after accomplishment of which it is liquidated. It is a common practice that both the parties in the venture enjoy equal rights and are responsible for liabilities. In other words, they enjoy equal profit or loss.
The joint ventures arc not only established locally but also at international levels. Although they are formed for a limited time, they may work for long-term period. Their establishment facilitates both the parties to capitalize on the experience of each other. They exchange valuable information useful for business.
The difficulties in forming a business abroad are averted. Risks are equally divided. The foreign market is easily accessed — and thus new products are comfortably introduced.