Joint Ventures

  • J. Wilczynski
Part of the Trade Policy Research Centre book series (TPRC)


By ‘joint venture’ in its strict legal sense we now understand an integrated, jointly owned and managed enterprise. Thus it is distinct from industrial co-operation where the individuality of the participants in the agreed pursuit or project is essentially retained with regard to ownership and operation. As R. S. Kretschmar Jr and R. Foor state, ‘a co-operation agreement becomes a joint venture when both partners have influence over the decision-making process basic to the venture’s economic success (equivalent, for business purposes, to equity participation) and when they share in the risks and rewards of the venture.’1 C. H. McMillan and D. P. St Charles point out that there are three essential elements distinguishing joint ventures from ordinary industrial co-operation agreements, viz. ‘pooled assets, joint management and the shared risk’.2


Joint Venturis Socialist Country Share Capital Foreign Partner Western Firm 
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  1. 1.
    R. S. Kretschmar, Jr, and R. Foor, The Potential for Joint Ventures in Eastern Europe, New York, Praeger, 1972, p. 4.Google Scholar
  2. 2.
    C. H. McMillan and D. P. St Charles, Joint Ventures in Eastern Europe: A Three-Country Comparison, Montreal, Canadian Economic Policy Committee and C. D. Howe Research Institute, 1974, p. 10.Google Scholar
  3. 3.
    e.g. Bayer (FRG) is reported to be a partner in over 30 such ventures, ICI (UK) — also in 30, Montedison — in 12 and Royal Dutch-Shell — in 25. C. Levinson, International Trade Unionism, London, Allen & Unwin, 1972, p. 39.Google Scholar
  4. 5.
    e.g. in 1974 an American corporation was negotiating a joint-venture agreement with Romania for the manufacture of heavy machinery, under which 75 per cent of the output is to be marketed in China. See, N. Holden, ‘Co-operating with Romania’, International Commerce, London, Sep 1974, p. 20.Google Scholar
  5. 9.
    R. M. Mansfield, ‘Belarus Ltd — A Joint East-West Venture in Canada’, Working Paper No. 5, East-West Commercial Relations Series, Institute of Soviet and East European Studies, Carleton University, Sep 1974, pp. 26–33.Google Scholar
  6. 14.
    Pauline Lewin, The Foreign Trade of Communist China, New York, Praeger, 1966, p. 39.Google Scholar
  7. 16.
    G. Adler-Karlsson, ‘Problems and Perspectives of East-West Economic Contacts’, Acta oeconomica (Economic Papers), Budapest, vol. 9, no. 3–4, 1972, p. 256.Google Scholar

Copyright information

© J. Wilczynski 1976

Authors and Affiliations

  • J. Wilczynski
    • 1
    • 2
  1. 1.University of PittsburghUSA
  2. 2.University of New South WalesDuntroonAustralia

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