A joint venture with a local entrepreneur exposes the firm to the least amount of political risk and is a preferred method of investment by foreign governments.

Question

Quizplus · Accepted Answer

A joint venture with a local entrepreneur can be beneficial in reducing political risk as the local partner can navigate the political and cultural environment. Additionally, foreign governments may prefer this method as it demonstrates a commitment to local partnerships and can boost the local economy. However, political risk cannot be completely eliminated and will always exist to some extent in foreign investments.

A Joint Venture with a Local Entrepreneur Exposes the Firm