Firms often find it difficult to find capital for new and riskier investments. In 1992 the Pequot Indians of Ledyard, Connecticut (U.S.) wished to build and operate a casino on their reservation but could not find the necessary capital. After an extended search, a joint-venture agreement was concluded with the Gentry Group, a Malaysian conglomerate with casino and gaming industry experience in the highland casinos of Malaysia. The result was formation of the Foxwood High-Stakes Bingo and Casino.

Why would an international joint-venture partner, such as the Malaysian investment group in this case, see the investment returns differently from a similar U.S.-based venture-capital group?