Question

Alpha Computing is a U.S. company that specializes in IT research. It has formed a joint venture with Microchips Inc., a Belgium organization that has a reputation for producing quality PCs. The two companies will work together to market laptops in China, sharing the risks and rewards of starting the new enterprise together. Alpha Computing and Microchips Inc. are partners in an:________.
a. strategic alliance.
b. global strategy.
c. export strategy.
d. import strategy.
e. franchising strategy.

Answer 1

Answer:

The correct answer is option A,strategic alliance

Explanation:

Strategic alliance it is a form of partnership where businesses avail one another strategic resources in the areas of supply chain management,production,marketing,distribution,technological advancement and know-how for the joint benefits and advantage of all partners.

In this case,Alpha as the leader in laptop designing  is combining resources with another technological giant Microchips Inc. in order that they may complement each other's efforts.The synergy impact of such arrangement is enormous as each partner concentrates on what he knows best.