A more thorough explanation:

A joint venture is a business arrangement where two or more parties come together to develop a single enterprise or project for profit. The parties involved share the risks associated with the development of the project. The parties can be individuals or entities, and they may contribute capital, labor, assets, skill, experience, knowledge, or other resources useful for the project.

There are several elements that make up a joint venture, including:

• An agreement between the parties to associate as joint venturers
• Mutual contributions by the parties to the joint venture
• Some degree of joint control over the project
• A mechanism or provision for the sharing of profits or losses

Joint ventures are not partnerships or corporations, although they may be subject to some legal aspects of partnership laws, such as income tax treatment.

Joint ventures are commonly used to enter foreign markets. For example, a foreign entity may form a joint venture with a domestic entity already present in a market the foreign entity would like to enter. The foreign entity may bring new technologies or business practices into the joint venture, while the domestic entity already has commercial relationships and requisite governmental documents within the country, along with being entrenched in the domestic industry.

One example of a joint venture is the partnership between Toyota and General Motors to produce cars in California. Both companies contributed capital, labor, and expertise to the project, and they shared control over the production process. Another example is the joint venture between Starbucks and PepsiCo to produce bottled Frappuccino drinks. Starbucks brought its brand and recipe to the project, while PepsiCo provided its distribution network and marketing expertise.

These examples illustrate how joint ventures can bring together the strengths of different parties to create a successful project or enterprise.