Joint ventures are business ownership arrangements in which two businesses establish a factory. It is a form of business ownership often used in the apparel industry for off-shore or overseas plants, because foreign ownership is not permitted in many countries. Levi Strauss, for instance, established jointly owned plants in a number of countries as it expanded its sales internationally.
Joint ventures sometimes provide capital to a new design business or to start a business of interest to two different parties. In some cases, there is a joint management structure. In international joint ventures, the business structure is sometimes modified after a specified time period so that the principals in the country where the business is located take over total ownership of the business.