________ includes the initiation of joint ventures with nationals (individuals or those in firms, labor unions, or government)to reduce political risks.

Question

Quizplus · Accepted Answer

Equity sharing involves partnering with nationals to reduce political risks. By sharing ownership and control of a business with local partners, foreign firms can gain access to valuable local knowledge, networks, and resources, as well as mitigate political risks associated with operating in an unfamiliar environment. Joint ventures, in which two or more parties share ownership and management of a business, are a common form of equity sharing that can help foreign firms navigate complex political and cultural landscapes while also benefiting from local market knowledge and connections.

________ Includes the Initiation of Joint Ventures with Nationals (Individuals