Final answer:
Equity sharing entails the creation of joint ventures with local nationals to manage political risk, and this is indeed a true and effective strategy. Co-management aids in achieving equitable distribution of authority, which also helps in political risk mitigation.
Step-by-step explanation:
Equity sharing is a method of managing political risk by initiating joint ventures with nationals to reduce political risk. This statement is True. By collaborating with local partners, companies can align their interests with local stakeholders, which often leads to a reduction in political risk. This is because the local partners are likely to have a better understanding of the political landscape and can offer insights into the most appropriate ways to conduct business within that framework. Joint ventures allow for shared responsibility, and risk can be mitigated by leveraging the complementary skills and knowledge of the partners. Additionally, the concept of co-management involves more equitable distribution of authority, potentially alleviating political risk by fostering better relationships between all parties involved.
Regarding the reference to sharecroppers, the statement that 'Sharecroppers were tenant farmers who paid their rent with shares of their crops' is True. This has historical relevance and reflects the economic practices of the time, particularly in the post-Civil War Southern United States.