A joint venture is a business entity created by two or more firms through an arrangement that typically includes shared governance, resources, profits, losses and expenses for a particular project.
For example, a Canadian engineering firm and a local construction company in Brazil form a joint venture to jointly bid on and execute a large infrastructure contract, combining the Canadian firm's technical expertise with the local partner's relationships, workforce, and regulatory knowledge.
Why it matters: It allows companies to pool resources and access new markets while sharing the immense financial risks of a major project.
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