A joint venture is a business entity created by two or more parties, generally characterised by shared ownership, sharped returns and risks, and shared

governance. A joint venture may also be the result of an agreement between two business in different countries. In a broader sense, a joint ventures is the pooling of resources and expertise by two or more business, to achieve a particular goal.

The advantages are stated below: 

(i) Increased resources and capacity: Joining hands with another or teaching up adds to existing resources and capacity enabling the joint venture company to grow and expand more quickly and efficiently.

(ii) Across to new markets and distribution networks: When a business enters into a joint venture with a partner from another country. It opens up a vast growing market.

They can also take advantage of the established distribution channels i.e., the retail, outlets in different local markets. Otherwise establishing their own retail outlets way prove to be very expensive.

(iii) Access to technology Technology is a major factor for most business to enter into joint ventures Advanced techniques of production leading to superior quality products saves a lot of time, energy and investment as they do not have to develop their own technology. Technology also adds to efficiency and effectiveness,

thus leading to reduction in costs.

(iv) Innovation: The markets are increasingly becoming more demanding in terms of new and innovative products Joint ventures allow business to come up with something new and creative for the same market.

(v) Low cost of production: When international corporations invest in India, they benefit immensely due to the lower cost of production. They are able to get quality products for their global requirements.

(vi) Established brand name: When two business enter into a joint Bit venture one of the parties benefits from the other's goodwill which ensiteypont has already been establishing in the market.

The limitations are stated below:

(i) Flexibility can be restricted: There are times when flexibility is restricted in a joint venture.

(ii) There is no such thing as an equal involvement: An equal pay may be possible, but its is extremely unlikely for all the companies working together to share the same involvement and responsibilities.

(iii) Great imbalance: Because different companies are working together there is a great imbalance of expertise, assets, and investment.