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Evgesh-ka [11]
3 years ago
10

Devonaile inc. is a small-scale apparel manufacturer in florida. devonaile and other similar firms from florida collaborate and

form a separate company in india as none of the participants in this collaboration have active operations in the indian market. the newly created firm primarily manufactures apparel suited to the tastes and preferences of the indian customers. identify the type of foreign market-entry approach depicted in this scenario.
Business
1 answer:
Nonamiya [84]3 years ago
4 0

Answer:

A Consortium

Explanation:

A Consortium refers to a group comprising of two or more companies who work together in order to accomplish a common goal.

The companies pool in resources but are individually responsible only for those obligations, which are specified in the agreement.

Thus, all companies under a consortium operate independently and exercise no control over other group companies.

Consortiums are a common sight in the educational sector wherein, educational institutes pool in resources such as libraries, teachers, etc so to collectively provide wide range of services to the students.

In the given case, Devonaile Inc and other firms have formed a consortium, dealing in apparels, to serve Indian customers.

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