Ministry of Education and Science of Republic of Kazakhstan

Management Department

TERM PAPER

By Economic Theory

“Joint Ventures”

Prepared by: Sarsymbayeva G., 11.856

Scientific Advisor: Amanniyazova B.K.

Almaty, 2011

Plan:

I. Introduction

II. Main Part:

Chapter 1. Theoretical approach to the phenomenon of joint ventures.

1.1. The essence of joint ventures.

1.2. Forms of joint ventures.

1.3. Types of joint ventures.

Chapter 2. Creation of joint ventures in the Republic of Kazakhstan.

2.1. Objectives of the joint venture.

2.2. The process of creating joint ventures.

2.3. Development of joint ventures in Kazakhstan.

III. Conclusion

Introduction

The modern experience of sovereign Kazakhstan is characterized by the rapid development of market relations. Enterprises of different types of ownership play an important role. They are the key components of the national economy. Radical restructuring of economic management system, passing on the track of market relations is one of the most important areas of reforming programs held in our country. This problem is very significant at the level of enterprises, whose position in the market is completely changing nowadays. Management of the organization working in market sphere sets high demands on the professionalism of managers. World experience shows that this sector is an important structural element in market economy of developed countries.

The necessity of intensive functioning of joint ventures is caused by a number of active tendencies, among which are the growth of specializations and labor division, diversification of production, consumption of materials and energy products and services, the increase of demand for high quality products, an increase of demographic factors and other factors. Kazakhstan has a great number of different natural resources which make up a powerful platform for the development of practically every type of industry. This factor attracts a lot of people from developed countries for creating a joint business. The quantity of foreign companies and firms that invest their capital in the development of the republic's economy is growing rapidly. It is a great achievement of the government policy which provides many advantages for foreign investors. There are no interethnic and ethnic conflicts, which could form the basis for military conflicts. This is a reliable guarantee for any investor to invest his capital in the economy of our state.

Today, one of the main objectives in Kazakhstan is to create and develop a market economy, deform and reform the concept of private property, introduce commodity-money relations, production and consumption. It is necessary to encourage business, entrepreneurship to study their characteristics, features and experience. In the transition to market relations one of the real and effective actions to stabilize the economy of Kazakhstan is the inclusion of it to the global economy. Any industry requires investments to replace worn-out machinery and equipment, innovations, upgrading technology, or simply to maintain its life. Joint ventures are beginning to play an increasingly important role in the development of a new mechanism of foreign economic activity.

Chapter 1. Theoretical approach to the phenomenon of joint ventures.