Advantages of Joint ventures
- Helps removal of monopoly
- Develops various industries
- Brings technology
- Accelerates country’s exports
- Beneficial to host company
- Inflow of fund along with technology
- Achieve economies of scale
- Enables modernization and expansion.
- Extensive use of idle resources
- Reduces imports and makes country self-sufficient to a certain extent.
Thus, J.V. is a very important foreign market entry and growth strategy in the context of the deficiencies of the Indian firms in resources, technology and marketing. In several cases JVs in India with abroad companies help Indian firms to stabilize and consolidate their domestic business, beside the expansion of the foreign business.
13 Comments