It is common for less-developed countries to require foreign companies to ____ in order to manufacture and sell products in the less-developed country.
A) sell 100 percent of its locally produced goods within the host country
B) contract to operate in the host country for long periods of time, such as 20 years
C) invest in more than one company in the host country
D) form a joint venture with a host country firm

Question

Quizplus · Accepted Answer

Forming a joint venture with a host country firm is a common requirement for foreign companies to operate in less-developed countries. This is a way for the host country to ensure that they have a stake in the business and can benefit from the company's expertise and resources while also maintaining some level of control over the operations. This requirement may also help transfer technology and knowledge to the local population to promote development.

It Is Common for Less-Developed Countries to Require Foreign Companies