An agreement by two companies, typically one foreign and one domestic to work together for mutual benefit with specific ownership percentages specified in a long-term contract. These two companies set up a third company (the Joint Venture). This new company would usually be located in the same country as one of the two partner companies, with the purpose of mutually establishing an activity with its own objectives: marketing and distribution, research, manufacturing, etc. The terms of some joint ventures deals are regulated heavily by governments of certain countries (mainly developing counties) as to the limits of foreign ownership and the minimum amounts of money or assets invested. Companies of different countries that enter into a joint venture govern their relationship through the International Joint Venture Contract. See also contractual joint venture; equity joint venture; strategic alliance.