A foreign investor may enter into a joint venture by combining with a national of a host country to create a new entity or by acquiring a portion of an existing local entity.

Question

Quizplus · Accepted Answer

This statement is true. A foreign investor may enter into a joint venture by forming a new entity with a national of the host country (creating a new partnership, corporation or limited liability company, for example), or by acquiring an ownership interest in an existing local entity, which may already carry on business operations in the country.

A Foreign Investor May Enter into a Joint Venture by Combining