The Commercial Aspects of the International Joint Venture

The management of a company is a dynamic process that requires constant vigilance if growth is to be maintained. However, sustaining growth, or at least consolidating it, may require an enterprise to secure this objective in a distant, foreign jurisdiction. On the other hand, growth means expansion, but this may not be probable in the home market. Growth requires new markets and the home market may be saturated. In other circumstances, with other firms, for growth to continue, the product image must be maintained. A company with sales overseas may find for various reasons that its product image is being damaged and it must exercise more direct control in the various jurisdictions where the product circulates. Not infrequently, a corporation possesses expertise in a particular technology that cannot be licensed. It is an art, a trade secret. The most effective way of transferring the technology to a foreign enterprise is to form a company: one contributes the knowledge, the other capital.