Joint Ownership is a method of entering a foreign market (a form of Joint Venturing) in which a company joins forces with local investors in the target market to create a local business. The company has joint ownership and control of the new company.
This approach reduces the financial risk for the foreign company, as risks and investments are shared. In addition, the local partner provides critical expertise on the local market, culture, and political environment. The disadvantage is the potential conflict between the partners over control and strategic goals.
