Adele owns Atley Health Products, a california-based-company that promoste environmental friendly mamnufacturing and distribution of natural herb products. Rafeal owns a similiar company in Chile. Adele and Rafeal are considering building a third company in Chile that promotes a similar natural philosophy. However, they plan to seel the company after the byuilding is complete. Explain what type of ownership A and R should consider and why, based on the facts presented.
A and D should consider forming a joint venture when cuilding their overseas company. A joint venture will fulfill their desire to dissolve the relationship after the building is sold to another investor. Joint ventures are also often used as an expedited means to enter new markets, especially foreign markets.
