Question

To enter the Chinese market, General Motors entered a __________________________ with the local company SAIC. Each company owns about 50% of the new company.
a. global alliance
b. joint venture agreement
c. trading partnership
d. franchising agreement
e. unlimited partnership

Answer 1

Answer: joint venture agreement

Explanation:

To enter the Chinese market, General Motors entered a joint venture agreement with the local company SAIC.

A joint venture is when two or more companies come together utilizing their skills and pooling their resources together so that they can achieve a particular aim

Here, both company pooled their resources together and they both own about 50% of the new company.