Mining
A joint venture (often abbreviated JV) is an entity formed between two or more parties to undertake economic activity together. The parties agree to create a new entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise.
Possibility of Entering emerging market that has yet to be recognized and exploited
joint venture as “a separate legal organizational entity representing the partial holdings of two or more parent firms, in which the headquarters of at least one is located outside the country of operation of the joint venture. The entity is subject to the joint control of its parent firms , each of which is economically and legally independent of the other”
Types of joint ventures
A joint venture is essentially a partnership between or among two or more parties whereby each party contributes a portion of its assets, expertise, or activities for the purpose of performing a specific business transaction. Depending on the degree of involvement of the exempt organization, there are four types of joint ventures that may come into play:
1. Ancillary joint ventures involve a limited portion of the assets or services of an exempt organization.
2. Whole joint ventures involve all or substantially all of the assets of an exempt organization.
3. Exempt-only joint ventures involve the assets or services of two or more exempt organizations.
4. Investment-type joint ventures involve the participation of an exempt organization in a limited or passive capacity.
Types of Joint Ventures
Consolidation Joint Venture
Value comes from combining existing businesses
Skills Transfer JV
Value comes from transfer of some critical skills to other partner
Coordination JV
Value comes from Leveraging the complementary Capabilities
New Business JV
Value...
Please login to view the full essay...