Question

What are the risks involved in making a partnership between an American company and a foreign one?

Answer 1

There are certain risks that are involved in dealing the US with the foreign companies which include

1) The local or exclusive distibutor problem where investing in a foreign company always includes the dealer peoblem where they pressurize to go for local dealers which aren't up to the standards.

2) The legal issues in some countries are on a higher node that there can be certain issues arising even when the fault is from the local company.

3) Certain foreign companies are not good at adveritising issues and this can create a trouble in the overall development of the company.

Apart from these, there are even many risks involved which are to be properly scrutinized before entering the market.