Class 11 Business Studies - Chapter Private, Public and Global Enterprises NCERT Solutions | What is the relevance of Joint Ventures

Welcome to the NCERT Solutions for Class 11th Business Studies - Chapter Private, Public and Global Enterprises. This page offers a step-by-step solution to the specific question from Extra Questions, Question 7: what is the relevance of joint ventures in today r....
Question 7

What is the relevance of Joint Ventures in today’s business environment? Explain with examples.

Answer
  • Joint ventures have gained relevance due to:
    • Risk Sharing: Partners share financial and operational risks.
    • Access to Resources: Combining resources like technology and expertise enhances efficiency.
    • Market Expansion: Partners leverage each other’s market reach to enter new regions.
    • Legal and Regulatory Advantages: Collaborating with local firms helps in navigating legal and cultural challenges.
    Examples:
    • Maruti Suzuki: A successful collaboration between Maruti (India) and Suzuki (Japan).
    • Tata Starbucks: Partnership between Tata Group and Starbucks for the Indian market.
    Joint ventures are particularly significant for entering competitive global markets or sectors requiring high investment.

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