Question

Which of the following is an arrangement in which a company


Which of the following is an arrangement in which a company finds a foreign partner to contribute approximately half of the resources needed to establish and operate a new business in the parther s country? 

  •  Licensing Arrangement 

  •  Strategic Alliance 

  •  Foreign Direct Investment 

  •  Branch Office 

  •  Exports 

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Answer #1

Solution: strategic alliance

Explanation: The strategic alliance arrangement (also called joint venture) in which a company searches for a global partner to contribute approximately half of the resources required for the establishment and operating of a new business in the partner's country. Thus is a formal arrangement among two or more companies who have agreed to share resources in a certain project to create a competitive advantage.

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