- Benefits of Joint Ventures
- Provide companies with the opportunity to obtain new capacity and proficiency.
- Allow companies to enter into new geographic markets or obtain new technological knowledge.
- Have a relatively short life span (5-7 years) and consequently do not represent a long-term commitment.
- In the era of divesture and consolidation, offer a creative way for companies to exit from non-core businesses. Companies can regularly separate a business from the rest of the organization, and ultimately, sell it to the other parent company