Joint Venture
In a joint venture, a new “entity” is formed between Tecma and one or more parties to undertake economic activity together. The parties agree, in creating this new entity, to both contributing equity, and sharing in the revenues, expenses, and control of the enterprise. The venture can be for one specific project only, or a continuing business relationship.
When are joint ventures used?
Joint ventures are often “co-operations” between a local and foreign company. A joint venture with Tecma is a very viable business alternative in this sector, as the “partners” can complement their skill sets while it offers our client companies the resources and many other benefits of working in Mexico.
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Reasons for forming a joint venture
• Build on company’s strengths
• Spreading costs and risks
• Improving access to financial resources
• Economies of scale and advantages of size
• Access to new technologies and customers
• Access to innovative managerial practices
• Influencing structural evolution of the industry
• Pre-empting competition
• Defensive response to blurring industry boundaries
• Creation of stronger competitive units
• Speed to market
• Improved agility
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