Feasibility Study
A nascent JV project outlines:
- the partners
- the objectives and structure of the JV
- investment and financing arrangements
- product(s) and description and usage, output
- production technology
- equipment required and costs
- technology transfer costs
- cost-benefit analysis
- market analysis
- analysis of competition
- details of the site
- transport and warehousing
- by-products and waste
- supply, utility, and transport requirements
- foreign exchange projections
- staff requirements and training
Its feasibility, besides its profitability, is assessed (in terms of government control over the JV) by considering it, along with the Articles which will regulate it, by its strength or weakness factors (for the economy or the country) in aspects such as:
- the quality of the technology - its appropriateness to the national infrastructure, exports, etc.
- value to national economy and other contributions (i.e., labor intensity, environment factors, utility usage, "greeness" of the technology), waste-treatment and disposal
- capability of recipient to absorb the technology
- cost of the technology and competitiveness
- supporting strengths (trademarks, patents, know-how, copyrights in case of IT)
- limits imposed (by its supplier) on the use or non-use of the technology.
Read more about this topic: Joint Venture
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