Earth-Rite Organic Foods
Earth-Rite Organic Foods is an MNE based in Sweden with subsidiaries located in numerous countries around the world. Earth-Rite has annual sales of $40 billion dollars and employs more than 90,000 individuals worldwide. Earth-Rite currently dominates the organic food industry, but competitors are beginning to catch up because of a growing demand for organic food. Earth-Rite is considering a "collaborative venture" with a small chain of organic grocery stores located in Brazil, a country where Earth-Rite has no stores.
-Which of the following would be most important for Earth-Rite executives to consider when deciding whether to collaborate with the Brazilian grocery store chain?

Question

Earth-Rite Organic Foods 
Earth-Rite Organic Foods is an MNE based in Sweden with subsidiaries located in numerous countries around the world. Earth-Rite has annual sales of $40 billion dollars and employs more than 90,000 individuals worldwide. Earth-Rite currently dominates the organic food industry, but competitors are beginning to catch up because of a growing demand for organic food. Earth-Rite is considering a "collaborative venture" with a small chain of organic grocery stores located in Brazil, a country where Earth-Rite has no stores.
-Which of the following would be most important for Earth-Rite executives to consider when deciding whether to collaborate with the Brazilian grocery store chain?

Quizplus · Accepted Answer

Entering a collaborative venture can significantly speed up Earth-Rite's entry into the Brazilian market, allowing it to establish a presence and capitalize on the growing demand for organic food more quickly than if it were to attempt entering the market on its own.