A joint venture (JV) is a form of a country's participation in the international division of labor by creating an enterprise ( legal entity ) on the basis of jointly contributed property by participants from different countries, joint management, joint distribution of profits and risks . It is a form of joint venture in the field of international economic relations [1] [2] [3] [4] .
Content
History
The term became popular in the USSR in the late 1980s during the course of economic reform , one of the directions of which was to provide greater independence to enterprises, organizations, firms, governing bodies [2] .
Fundamentally, the question of the possibility of creating a joint venture was resolved in decisions of the Central Committee of the CPSU of the Council of Ministers of the USSR of August 19, 1986 No. 991 "On measures to improve the management of foreign economic relations" and No. 992 "On measures to improve the management of economic and scientific and technical cooperation with socialist countries" . Later, in more detail, the creation and operation of joint ventures on the territory of the USSR were defined in the decree of the Presidium of the Supreme Soviet of the USSR of January 13, 1987 “On issues related to the creation in the USSR and the activities of joint ventures, international associations and organizations with the participation of Soviet and foreign organizations , firms and governing bodies ”, as well as in resolutions of the Council of Ministers of the USSR of January 13, 1987 No. 48“ On the Procedure for Creating Joint Ventures in the USSR and the Activities of arodnyh associations and organizations of the USSR and other CMEA member countries "and number 49" On the order of creation in the Soviet Union and the activities of joint ventures with the participation of Soviet organizations and firms of the capitalist and developing countries " [1] .
As economic processes developed in the USSR and in the post-Soviet economic space , with the adoption of new laws, the term “joint venture” was replaced by another term “ venture with foreign investment ” (FDI), which was reflected in the law of the Russian Federation “On foreign investment in Russian Federation ” [5] .
Objectives of a Joint Venture
- More complete saturation of the market of the country-location of the joint venture with goods , services that are the subject of the joint venture.
- Attraction of advanced technologies, managerial experience, additional material and financial resources to the country.
- Expansion of the export base
- Import reduction due to import-substituting products
- Market expansion
- Tax optimization.
- Other goals and objectives of the participants in the joint venture and the country - location of the joint venture.
The sequence of steps to create a joint venture
- Setting goals for a joint venture.
- Analysis of indicators of a potential joint venture: costs, profits , profitability , return on investment, etc.
- Search and selection of a foreign partner or partners.
- Preparation and signing of a letter of intent.
- Development of a feasibility study for the creation of a joint venture.
- Preparation of draft constituent documents .
- Coordination of proposals on the creation of a joint venture in state authorities, if necessary according to the legislation of the country where the future joint venture is located.
- The signing of constituent documents on the establishment of a joint venture
- Registration of a joint venture in accordance with the legislation of the country of location of the joint venture.
Joint Venture Experience
One example of a successful joint venture is the Soviet-West German joint venture KOMPAN , which produced personal computers of the same name in the late 1980s and early 1990s under the auspices of the USSR Academy of Sciences. In Germany itself, these computers were not used because of the availability of their own PC models in production.
Notes
- ↑ 1 2 Recommendations on the preparation and discussion of proposals on the creation and activities of joint ventures in the USSR / Ed. professors I.P. Faminskiy. - M .: Vneshtorgizdat, 1989 .-- S. 3 .-- 304 p.
- ↑ 1 2 Gordeev G.D., Ivanova L.Ya., Kazantsev S.K. and other Creation and development of joint ventures // Foreign economic activity of the enterprise. Basics: Textbook for universities / Ed. professors L.E. Strovsky. - Recommended by the State Committee of the Russian Federation on Higher Education as a textbook for students of economic specialties of higher educational institutions. - M .: Law and Law, UNITY, 1996. - T. 3. - S. 256-269. - 408 p. - ISBN 5-85173-029-3 .
- ↑ Joint venture (JV) . Glossary.RU. Date of treatment November 16, 2010.
- ↑ Joint venture . Modern Economic Dictionary ONLINE. Date of treatment November 16, 2010.
- ↑ On foreign investments in the Russian Federation (Federal Law) (unavailable link) . Consultant Plus. Date of treatment May 16, 2010. Archived May 23, 2010.
See also
- Foreign investment company
Links
- Team work. Legal, tax and accounting rules of partnership / Levant M.D., Narezhny V.V., Fomicheva L.P. - M .: Peak, 2006 .-- 255 p.
- Joint ventures in the practice of international economic relations. M., Vneshtorgizdat, 1989.
- Wallace R.L. Strategic alliances in business. Technology for building long-term partnerships and joint ventures. - M .: Good book, 2005.
- Wellborn R., Casten W. Business Partnerships: How to Succeed in Joint Business. - M.: Top, 2004.
- Ilchenko A.N., Wei He. PROBLEMS OF A JOINT VENTURE IN RUSSIA: EXTERNAL AND INTERNAL FACTORS (rus.) // Successes in modern natural sciences. LLC "Publishing House" Academy of Natural Sciences ": journal. - 2007. - No. 12. - P. 270-271 .