why would a firm enter into a joint venture 
there are many reasons to join forces with another company on a temporary basis including for purposes of expansion development of new products and entering new markets particularly overseas joint ventures are a common method of combining the business prowess industry expertise and personnel of two otherwise unrelated companies this type of partnership allows each participating company an opportunity to scale its resources to complete a specific project or goal while reducing total cost and spreading out the risks and liabilities inherent to the task 