A joint venture is a business arrangement in which two or more businesses agree to pool their resources for the purpose of accomplishing a specific task. The arrangement usually results in the creation of a new business entity, such as a partnership, corporation or limited liability company which is separate from the joint venture participants. The arrangement may be temporary or long term. Joint ventures take advantage of the joint resources and expertise of the participants and often reduce costs. Joint ventures are commonly structured when a company wants to enter a foreign market and needs the participation of a local company to achieve its goals.