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Given our connected world, joint ventures are increasingly common these days. It’s a powerful association in which two individuals, group of people, or corporate entities venture together to expand their business, influence and presence. These joint ventures can be between two or more countries as well like Quad CITY Region project which is a joint venture between Japan and America.

Benefits of international joint ventures
International joint ventures, especially in developing countries look attractive because it allows two or more entities to gain significant benefits from the comparative advantages of each other. International joint ventures can be a fusion of knowledge and technology and bring other various advantages. Some of the key benefits of international joint ventures would have to be:
1.    Penetration into new market with ease
2.    Gaining up-to-date technological and managerial knowledge
3.    Increased employment
4.    Chance to take advantage of expertise in host country
5.    Creating new industries and set of experts
6.    Growth for the companies involved in joint venture
These joint ventures can serve environmental purposes as well. One prominent example of such sort of venture is the joint venture between Canada and America on North American Waterfowl Management Plan.

Risks involved in international joint ventures
Despite numerous benefits, international joint ventures are not risk-free. In fact ventures on international scale are comparatively unstable and vulnerable to difficulties. There can be negotiating difficulties when it comes to equity structure, technology transfer, or marketing issues. There are many risks, but just thinking about a few…
1.    Rapid change in political or economical condition in a host country can affect the investing company
2.    Difference in cultural and managerial style can create misunderstanding and problem for the involved parties
3.    Adverse publicity can damage credibility, both nationally and internationally
4.    Gaining no significance in return
Still, if international joint ventures happen true to its spirit then it can create huge positive impact and result in exponential growth and success.