Question

A company offering local telecommunications service combines resources with an international company that manufactures digital switching equipment to research a new type of telecommunications technology. This is an example of ________.A. joint diversification.
B. strategic alliance.
C. divestment.
D. global integration.

Answer 1

Answer:

The correct answer is B. strategic alliance.

Explanation:

A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. In this case, the company make a strategic alliance with the international company .

Answer 2

Answer:

A. joint diversification.

Explanation: Diversification by method of Joint Ventures, is a

Good way to diversify when it is

Uneconomical ( not economical from a single partner point of view) and risky to venture into it alone, the Puling power and competency of the two partners would provides more competitive strength and advantage. Foreign partners are needed for this kind of business ventures.