A joint-venture is an agreement between two partners from different countries and which consists of the creation or the joint acquisition of a joint venture on the market of the foreign partner. This co-operation is considered on the long-term. In other words, a joint venture is a group in which at least two people or two companies join forces according to various methods with the aim of carrying out a particular joint project. By gathering, the two or more companies share their knowledge and competences (technical, commercial, managerial), their technologies and their resources (financial means and human) for thus achieving goals which they could not reach if they were alone; and divide management, control, the risks and the profits associated with this common structure. The joint ventures often have a limited life span. If the alliance has problems, it can happen that shareholders want to leave the joint undertaking and that can cause tensions and conflicts. Therefore it is important to envisage the status of the joint venture and some procedures of exit for each party.
[...] The creation of a joint venture with local companies is also desirable to penetrate durably and effectively certain markets characterized by legislations, administrative constraints, cultural or commercial differences, distribution networks, which make them too complex (Brazil, Japan, For example, some countries, such as China and India, require foreign companies to form joint ventures with domestic firms in order to enter a market. This requirement often forces technology transfers and managerial control to the domestic partner. Majority of joint ventures fail in Asia due to cultural differences, as it was the case with the alliance between Renault and Nissan. [...]
[...] Their aim is the provision of financial contributions for the establishment of transnational joint ventures by innovative SMEs within the EU. This will be distributed indirectly through banks and other financial institutions in Member States under the overall management of the Commission services. The scheme will allow a maximum contribution of Euro 100,000 per project. A first element of up to Euro 50,000 will be available to cover 50% of eligible expenses, including market research, preparation of business plans, environmental impact studies and legal documentation. [...]
[...] For then, the stage of preparation of the files can be qualified as tiresome to state which is Eurotek manager's word. Indeed for the company wishing to acquire the Commission aid it is necessary to keep all the codes of expenses, which represents an important administrative work. Then this information is transmitted to the bank which then will submit it to the European Commission. A time measurement of 8 to12 months can be run out before obtaining an answer. Ralph Wicky said that it is also possible to be helped in this administrative work by subcontracting the application to a consultancy office, bearing in mind that the costs of this cabinet which can be entered in the expenditure covered by the JEV. [...]
[...] If the export business wanted to create a local structure in a third country where the joint venture is active commercially, it then becomes a potential competitor of the joint venture whereas it is still the partner. II) The different financings of Joint Ventures Because joint venture financing can take so many different forms, generalization is difficult. What is important in one project may be unimportant to another. For each project, the primary factors determining financial structure will be the needs and interests of the coventurers. [...]
[...] Thus, it is while taking contacts with the German partner that Eurotek had been aware of the existence of a Community program intended for financial help to support the small companies of the European Union wishing to create a joint venture. Secondly the manager of the company explains that it is very clear that the assistance is not there for financing the totality of the project but only to launch the companies. For instance concerning the first step (search of partners), for a project of 1,5 million Eurotek euros received euros. [...]
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