The joint ventures are among the outstanding, popular, and preferable means of making Foreign Direct Investment in any country for doing highly profitable international or worldwide business. Moreover, these joint ventures have been beneficial in most of the sectors of economy. A joint venture (also popularly known as A Joint Undertaking, or A Strategic Alliance) is a business association or partnership generally between two parties or companies for a finite period of time in the future, established for specified objectives and certain strategic advantages to both in the competitive International business. All requisite assets, resources, expertise, expenses, risks, and responsibilities are shared by both the parties in agreed proportion, and all revenues and profits are distributed accordingly.
In majority of the joint ventures new technology, enriched expertise, and, practical and mellow business practices are invested in the joint association by the foreign company or partner. The domestic company supports with already available industrial infrastructure, local know-how, firm ground in the domestic market, goodwill, national governmental and legal rules, and, formalities for the joint ventures.