From the following modes of international business, identify the mode which involves strategic alliance
Joint venture
A strategic alliance is a cooperative arrangement in which two or more firms pool resources to pursue shared goals while remaining separate companies.
A joint venture is an equity-based strategic alliance: the partners, often a foreign firm and a local firm, create and jointly own a new enterprise, sharing capital, control, risks and profits.
Franchising and leasing are contractual modes in which one firm grants rights to use its business system or assets for a fee, and a turnkey project is a contract to design, build and hand over a ready-to-operate facility. None of them creates a jointly owned partnership.
Hence, Joint venture.
Similar Questions
Counter–trade means :
In respect of international business, a project is called a turnkey project because :
Examine the following statements and choose the correct code :
Statement - (I) : Companies with Low cash reserves normally prefer Licensing mode rather than Foreign Direct Investment.
Statement - (II) : Cash rich firms normally prefer Foreign Direct Investment.
Codes :
Which of the following is the correct combination ?
(i) A GSA allows an MNE to enter into activities that might too costly and risky to pursue on its own.
(ii) A GSA does not allow a firm to enhance economics of scale.
(iii) A GSA does not allow a firm to bypass entry barriers into a target foreign country.
(iv) A GSA allows a firm to acquire partner knowledge.
Codes :
Which of the following is not a characteristic of bartering internationally ?
The method being used for Transferring Complex Technology is known as :
Important Questions from Modes of entry into international business
In which one of the following modes of entry into foreign markets risk and profit potential are the highest?
- The exporting firm is termed 'rider' where the other firm with an established distribution channel in the target country is termed as 'Carrier'. This phenomenon is known as:
Which proposition best represents the central learning–commitment mechanism of the Uppsala internationalisation process model?
Which international entry mode grants a local company the right to use a specified patent or production process for a royalty, allowing the foreign company to earn revenue without equity ownership in that country?
Counter–trade means :
