Many countries do not permit foreign companies to purchase and operate facilities in their country.A company that wants to do business in such a country may share the business costs with a firm from the host country by forming a:

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A joint venture involves two or more parties, typically businesses, pooling their resources to achieve a specific goal. When a foreign company partners with a local firm to operate in a country where direct foreign investment is restricted, they often form a joint venture. This allows them to share the business costs and comply with local regulations.

Many Countries Do Not Permit Foreign Companies to Purchase and Operate