In a joint venture, a foreign firm buys the rights to use another's name and operating methods in its home country.

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A joint venture is a business agreement in which two or more parties agree to pool their resources and expertise to achieve a specific goal. It involves the creation of a new entity, separate and distinct from the participants' other business interests. In a joint venture, the participants share the risks, costs, and profits of the venture. It is different from a licensing agreement, where a firm buys the rights to use another's name and operating methods in its home country.

In a Joint Venture, a Foreign Firm Buys the Rights