“…6 Joint venture is viewed as a transitional form of organization both in developing and developed countries. International joint ventures may be a way to enter foreign markets when the local regulations prohibit whole foreign ownership (Davidson, 1987;Fayerweather, 1982); whenever such constraints are removed, joint ventures tend to become wholly owned subsidiaries (Contractor, 1990). The issue of instability of international joint ventures in response to a shift in government policy has been discussed in the literature (see Harrigan, 1984;Harrigan and Newman, 1990;Brewer, 1992;Boddewyn and Brewer, 1994, etc.).…”