Question

The Japan-based multinational Sony engaged in _________ when it partnered with Shanghai Oriental Pearl Group. Together, the two companies would make and market PlayStation consoles and games in China.

Answer 1

The Japan-based multinational Sony engaged in a joint venture when it partnered with Shanghai Oriental Pearl Group.

Explanation:

A strategic alliance in which two or more firms enters into partnership refers to a Joint Venture. These enter into partnership mainly to share markets, assets, knowledge, assets and profits. There will not be any transfer of ownership in JV.

In this JV the companies that partners with each other just shares the resources for the purpose of the accomplishment of any tasks. These partners are usually responsible for the profits, losses and all the costs associated with the JV. The Japan-based multinational Sony engaged in a joint venture when it partnered with Shanghai Oriental Pearl Group.