Question

Moon Flower Cosmetics Company's executives are aware that their Asian customer base is interested in advanced skin care treatments beyond Moon Flower's traditional herbal and organic compounds. Moon Flower and a large American chemical company are in discussions to create a 50-50 partnership in a new firm, which would create skin care treatments based on innovative chemical formulations that would be marketed both in Asia and the United States. Beyond being a cross-border alliance, this partnership can be called a(n):_________
a. nonequity strategic alliance.
b. joint venture
c. horizontal complementary alliances
d. equity strategic allianc

Answer 1

Answer:

Letter b is correct. Joint venture.

Explanation:

The Joint Venture strategy can be defined as an economic association that occurs between two or more companies, whose objective is to carry out a certain activity during a limited period of time.

Joint Venture operations are commonly used for various organizational purposes, such as commercial, logistical, technological, etc., in addition to being a strategy that makes it possible to accelerate business by combining business resources.

It is necessary to know that in addition to the mutual benefits, the companies that adopt this strategy also share the same risks and costs, therefore planning is necessary so that the commercial association is profitable for both companies.