Comprehensive and Detailed Explanation:
Some countries requireforeign entitiesto partner with alocal firmto operate legallywithin their jurisdiction. These arrangements, often termedinternational alliances or joint ventures, serve to:
Facilitate knowledge transfer
Allow local ownership or oversight
Ensure compliance withlocal regulations and trade protections
This is particularly common in countries witheconomic nationalism, such asChina, India, or the Middle East.
GPHR Study Guide Extract β Strategic Global Human Resources / Entry Strategy Constraints:
βIn certain jurisdictions, foreign companies must enter through partnerships or joint ventures due to government regulations requiring local representation or control.β
These legal requirements make joint operations the only feasible strategy for market entry in some regions.