Asked by Nathalie Almonte on May 06, 2024

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What statement best describes global expansion through a strategic alliance?

A) In a strategic alliance, a firm enters a new market and forms a new company with shared ownership, profits, and controls.
B) A strategic alliance is a relationship in which two firms collaborate on a business opportunity, but do not invest in each other.
C) In a strategic alliance, two firms enter into a franchise agreement.
D) In a strategic alliance, a firm in one country sends products to a firm in another country.
E) In a strategic alliance, a firm signs a trade agreement with a firm in another country.

Strategic Alliance

A formal agreement between two or more parties to pursue a set of agreed upon objectives while remaining independent organizations.

Shared Ownership

An arrangement where two or more parties hold vested interests in an asset, sharing both the benefits and responsibilities associated with the asset.

Business Opportunity

A viable and potentially profitable commercial idea or venture that can be exploited for financial gain.

  • Comprehend the significance and difficulties involved in constructing successful global collaborations and strategic partnerships.
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Verified Answer

BG
Boi Gia LuongMay 07, 2024
Final Answer :
B
Explanation :
A strategic alliance involves collaboration between two firms on a business opportunity without the necessity of investing in each other, allowing them to share resources and knowledge while maintaining their independence.