The merits of joint venture are:

1. Joint venture provides access to advanced technology, i.e., advance technique of production. Advanced technology contributes to the efficiency of the joint venture, enhancement of the quality of products and cost reduction. 

2. In a joint venture, the financial resources and physical facilities and capabilities of two or more firms are combined for a specific business. As a result, the joint business or joint venture can grow more, quickly and more efficiently. 

3. Because of the pooling of resources and capabilities, an joint venture is able to face challenges and take advantage of new opportunities.

The demerits of joint venture are:

1. There are also legal restrictions on foreign investment. For instance, the foreign Exchange Regulation Act has laid down the limit of permissible foreign shareholders in Indian companies. 

2. Joint ventures between unequal partners often amount to quasi-mergers and attract antimonopoly regulations. 

3. Lack of proper co-ordination among the parties to the joint venture may adversely affect the efficient functioning of the joint venture.