Essay On Joint Venture

2274 Words5 Pages

One of the most misunderstood countries when it comes to being a host of foreign direct investment is Japan. Countless foreign companies regard Japan to be inhospitable to foreign investments, both in government and individual business circles. In fact, governmental regulations on foreign capital are in the past. Many Japanese companies are eager to trade with foreign companies and a lot of foreign companies are successful in Japan. Japan is definitely a more inviting market for foreign capital than regularly assumed. There is not a proper definition of a “joint venture.” The phrase is best interpreted by the presence of specific attributes, understandings and preparations. An international joint venture is often interpreted as the joining of two or more business partners from different territories to barter resources, share risks and split the rewards that come from having a joint enterprise. One of the partners is usually physically based in the jurisdiction where the joint venture is located. A joint venture has similarities of a partnership, but is customarily formed for a specific reason or project. For this reason, joint ventures are mostly limited in duration and scope. The input of the joint venture partners are often different and are usually discussed prior to joining together. Despite the fact that legal arrangements are mandatory to establish and continue the operation of a joint venture, to be able to thrive, joint ventures have to be efficient, living and maturing relationships. Maintaining positive communication among the business decision-makers after the development of the joint venture is extremely important. At times, circumstances may change and management and the joint venture itself have to b... ... middle of paper ... ...won’t stop by tables unless they are requested to and they definitely won’t stay and chat about the weather. Religion is not directly involved in business relations except from yearly holidays. However, regarding some of the attitudes and personalities of the way business is done plays a major role. Japanese often hold more than one religion at a time. This is completely different form the approach taken by people of the U.S. The U.S. takes the approach toward religions as being absolute. For example, in the U.S. being Christian, Jewish, and Catholic all at the same time is not a normal thing. To a certain degree, this has helped establish the Japanese business trend of being at the least briefly complacent with numerous interpretations of a situation unlike American businesspeople who feel it is a requirement to resolve conflicting views as they occur.

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