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joint ventures and setting up a joint venture

JOINT VENTURES. Definition of a joint venture, what is a joint venture? A joint venture may be define: as a business where the provision of resources shared between two or more firms. In the international context, joint ventures with local partners are often used by multinationals.

goods and services 2

Joint ventures may also be between two firms either public or private from different countries. In other words, these are ventures which are set up by government in collaboration with private firms.

reasons for setting up a joint venture

One of the major purposes of setting up a joint venture is to combine some of the advantages of government and private ownership and reduce the problems of complete government and private ownership. It also eliminates the inefficiency associated with public corporations. Government can participate in joint venture with private firms in various ways. Some of the ways include:

reasons why government set up joint ventures

  • Acquisition of part of the ownership of an already existing company.
  • Government may provide a larger portion of capital required to set up a venture.
  • Government may provide the basic infrastructure e.g. electricity, water and telephone services.
  • Government may purchase a larger portion of the shares of the joint ventures.

Joint ventures are common in car assemblies, cement COMPONENTS OF THE NIGERIAN MINING INDUSTRY manufacturing, mineral exploration and production.

  1. economic tools for nation building
  2. budgeting
  3. factors affecting the expansion of industries
  4. mineral resources and the mining industries
  5. demand and supply
  6. types of demand curve and used
  7. advertising industry
  8. factors of production
  9. entrepreneur
  10. joint stock company
  11. public enterprises
  12. private enterprises
  13. limited liability companies
  14. migration
  15. population
  16. market concept
  17. money market
  19. how companies raises funds for expansion


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