There are several reasons as to why a business may want to enter
a joint venture overseas. Joint ventures allow for much faster and
less costly access to foreign markets than can be achieved by
purchasing an existing company in the jurisdiction or starting a
new venture. They provide quick access to channels of distribution,
and they provide access for the non-resident partner to knowledge
and know-how of the local marketplace, which substantially enhances
the probability of success for the venture. But partnering with,
sharing the risks and taking advantage of another firm's local
resources and expertise can be a treacherous undertaking without
proper planning and understanding.
From a technical standpoint, a joint venture may be defined as a
temporary strategic partnership of short, medium or long term,
which creates an organization, group or alliance of persons or
groups of companies that maintain their individuality and legal
independence but act together under
