Abstract
A joint venture is the long-term commitment of funds, facilities and services by two or more
legally separate interests, to a combined enterprise for their mutual benefits.
A joint venture need not be a separate legal entity or company. Other forms of joint ventures include an agreement to work together formalized through the Heads of Agreement or a Strategic Cooperation Agreement.
A Manufacturing Joint Venture
Joint ventures are most commonly entered into to get around a trade barrier that is preventing your entry into a target market. Another way of circumnavigating a trade barrier is to establish a wholly owned manufacturing or assembly subsidiary in an overseas market; however, many companies find the joint venture route a better option. A joint venture achieves many of the advantages of a fully owned operation, without the long lead-time and at a fraction of the cost.
