Governments can restrict ownership of certain businesses. Information about perspective companies may be difficult to obtain. Also, the business or market may not exist in the target country. The software industry is another area where acquisitions are popular. Since software and technology are always changing it is difficult to stay ahead in this market.
Many companies use acquisitions to keep up with the competition.
Turnkey operations are another popular international business strategy. In the turnkey operation a company works under a contract to build an operating facility such as a factory for a fee. When the facility is finished the company or the country in which the facility was built takes over the factory. I have presented you with a few of the issues facing companies wanting to work together. The determinant as to which way is the best is up to the individual wanting to join forces with other companies.