Joint ventures

1. One of the latest trends in business is for two or more corporations (often from different countries) to form strategic alliances to accomplish some objectives. A joint venture, then, is an effort of two or more business firms to capture new markets through cooperation and shared investment risk. This enables world markets to benefit from the expertise of all nations business people working together.

2. For example, “GM” (“General Motors”) joined with “Toyota” to assemble “Geo Prisms” and “Toyota Corollas” in Fremont, California. Such agreements are known as joint ventures or strategic alliances, and are taking place all over the world.

3. In other areas, McDonald’s formed a net of joined ventures in many countries of the world to franchise fast-food restaurants. “Walt Disney Productions” and “Oriental Land” in Japan created Tokyo Disneyland, a theme park much like the Disney parks in America.

4. A joint venture has a limited liability. It should be self-supported and self-financing. In our country, joint ventures offer foreign investors direct access to the Russian market. It may be set up in any branch of economy: agriculture, industry, trade, construction, service sector, etc.

5. A joint venture becomes a juridical person after it has been registered with the Ministry of Finance. The foundation documents and the Feasibility Study are the most important documents for the application procedure.

6. The foundation documents include the Agreement between the partners on the establishment of a joint venture and the Charter Statute of a joint venture. These documents outline the legal status of a joint venture, the funds raised and some other aspects. The Feasibility Study is prepared by the partners involved. It covers the objective of a company, the working capital, the product to be manufactured, the marketing possibilities, the technical back-up of a project.

7. Only after registration the company may open a bank account and conclude agreements and contracts in its own name.

Задание 3. Письменно ответьте на следующие вопросы к тексту.

1. What is a joint venture? What purpose is it created for?

2. What famous joint ventures do you know?

3. How is a joint venture managed and controlled?

4. How is a joint venture legally protected?

Дата добавления: 2015-08-27