Joint Ventures

Principal reasons

1. Economic of scale
2. Risk sharing
3. Technology access
4. market access

Objective of undertaking Joint ventures abroad

1. Sharing of experience and expertise
2. setting up enterprise
3. safeguarding of market
4. expectation of a reasonable return
5. Participation
6. Assured supply of raw material
7. Diversification of business risks

Important financial issues for foreign technical collaboration

1. Tax aspect
2. Cash flow aspect
3. Risk aspects

Financial consideration while buying foreign technology

1. Lump sum vs Royalty
2. Tax issues
3. Government clearance