Question

Petnro, a bike manufacturing firm based in the U.S., operates bike manufacturing plants in China, Japan, Taiwan, and Singapore under the name of BikMe. The parent company receives all the profits made by these facilities, and it has complete control over all the different segments of the plants. Which of the following methods for conducting global business has Petnro used in this scenario?A) The formation of a joint venture
B) The establishment of a strategic alliance
C) The formation of wholly owned affiliates
D) The establishment of a cooperative contract

Answer 1

Answer:

The methods for conducting global business which petnro has used in the given scenario is :

C) The formation of wholly owned affiliates

Explanation:

In the question it has been mentioned that their is a bike manufacturing firm which is based in u.s. and operates in various other countries under a different name i.e. BikMe.

So, the scenario is like the parent company is receiving all the profits which have been made by all these facilities and also controls different segments of the plants.

Therefore,the methods for conducting global business which petnro has used in the given scenario is :

C) The formation of wholly owned affiliates

Role of global marketing in international business:

A development in the global marketing strategy helps in growing of a business. Marketing globally is the first way to improving your company globally all over the market.

Another benefit is that the customer awareness increases.

Global strategy example : Any company who is delivering the same quality and variety of product is known as the global strategy.

For example: Gucci delivers all its products globally in different countries.

As for example the company here mentioned is also developing its global strategy.