How can Joint Ventures help businesses to enter Foreign Markets?

A joint venture is a form of partnership selected often as a means of entering a foreign market where a company does not have access, local knowledge or local distribution channels.  It is a strategic move against competitors, where a joint venture can compete more efficiently by combining clientele, skills and capacity.  Alliances such as joint ventures can help a company enter a foreign market by avoiding local prejudice against foreign companies or avoiding potential political conflict and lack of acceptance at a national level.  It is very often the case that joint ventures are formed between firms and state governments, especially in the oil and gas industry sector or the energy sector in general.  They can also prove useful in pursuing access to raw materials, government contracts and local production facilities.  International joint ventures can also be beneficial in providing a firm with access to funds that are not available locally or if they wish to export capital (2020).