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How is welfare economics used to explain the effects of an international joint venture?

How is welfare economics used to explain the effects of an international joint venture?

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In the study of the effects of International Joint Venture, various effects of policies including foreign equity cap, trade protection, domestic resource sharing etc with respect to welfare of both the host country as well as the other members are analysed where it has been found that foreign equity cap gets to reduce host country's welfare. Trade protection actually gets to reduce equity share for a local firm and this also has a first-order source of welfare gain as the internal efficiency of the firm improves.A marginal domestic resource requirement restriction also gets to enhance the joint surplus of the venture and social welfare on the whole and in this way welfare economics used to explain the effects of an international joint venture.

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