Joint ventures or enterprises
Definition of joint ventures: Joint ventures or enterprises can be defined as those businesses in which private investors and governments are in partnership. In other words, these are ventures which are set up by government in collaboration with firms.
One of the major purposes of setting up it venture is to combine some of the advantages of government and private ship and reduce the problems of complete government or 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:
- Acquisition of part of the ownership of an already existing company.
- Government may provide a larger portion of the capital required to set up such 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 manufacturing, mineral exploration and production, etc.
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- concept of economics
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