What Is the Primary Distinction Between a Joint Venture and a Strategic

question 36

Multiple Choice

What is the primary distinction between a joint venture and a strategic alliance in international marketing?

• A)Strategic alliances are only formed between companies from well-developed countries whereas joint ventures are between companies from economically-diverse countries.
• B)A joint venture involves only two companies whereas a strategic alliance is formed between three or more companies.
• C)A strategic alliance is formed by companies who have traditionally been rivals,which is not the case with a joint venture.
• D)A joint venture is formed between companies with dissimilar product offerings while a strategic alliance is formed between companies with similar product offerings.
• E)A joint venture is simply a financial investment in a foreign firm while a strategic alliance involves more than just financial support.

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Definitions:

Japanese Firms

Companies or business entities based in Japan, often characterized by their management practices and approaches to manufacturing and service delivery.

Matsushita

A Japanese multinational electronics company, also known as Panasonic, known for its innovations and contributions to the electronics industry.

Host-Country National

An employee who is a citizen of the country where a multinational company’s branch or subsidiary is located, as opposed to being from the company's home country.

Multinational Corporation

A company that operates in several countries but manages its operations from one (home) country.