Respuesta :
Sometimes a country's laws forbid foreigners from owning a business in the nation. In the presence of such laws, a(n) joint venture is one way for an American company to have a presence in that foreign country.
Explanation:
When two or more companies agree to put their resources for the purpose of the accomplishment of specific tasks refers to the Joint Ventures. These tasks may include some business activity or starting a new project. The things or the resources that are shared between two companies in JV include knowledge, assets, intellectual property, etc.
It is different from merger in such a way that there is an absence of the ownership transfer in JV. The main aim is to gain economies of scale, lower the cost of production, innovation, access to technology, etc. The law of a country sometimes may restrict foreigners from owning a business in the nation. In such situations joint venture is way for an American company to have a presence in that foreign country.
