We have been approached by a Nigerian firm about a potential joint venture to manufacture our appliances in Nigeria for the African and Middle East markets. The proposal envisions the creation of a new entity, owned 80% by the Nigerian firm, to own the land and factory, while we would have the right to 80% of the profits for the first 30 years that it operates. Think of a memo to the CEO explaining the legal hurdles that such a joint venture might need to address. Finally, should we pursue this proposal or not?

Our company makes small household appliances (coffee makers, toasters, blenders, etc.) in Taiwan and sells them in the United States. Some of the components for the appliances are imported to Taiwan from other countries. They are shipped by air and sea to customers all over the globe.