Control is an active strategy to prevent or reduce political risk, Firms using a control strategy lobby foreign governments or international trade agencies to change laws. regulations, or trade barriers that hurt their business in that country. Another method for dealing with political risk is cooperation which involves using joint ventures and collaborative contacts, such as franchising and licensing. Although cooperation does not eliminate which foreign ownership of a business. For example a German Company forming joint venture with a Chinese Company to do business in China may structure the joint venture contacts so that the Chinese Company owns 51 percent or more or the joint venture. Doing so qualifies the joint venture as a Chinese Company and exempts in form Chinese laws that apply to foreign-owned business