To enter the Mexican retail market, Wal-Mart combined its efforts with CIFRA, a Mexican retailer of food and general merchandise. Wal-Mart brings its buying power and knowledge of inventory management to the partnership, and CIFRA brings an understanding of the Mexican consumer. Wal-Mart and CIFRA have formed a:

Question

Quizplus · Accepted Answer

A joint venture is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. In this case, Wal-Mart and CIFRA combined their respective strengths (buying power and inventory management from Wal-Mart, and local market knowledge from CIFRA) to enter the Mexican retail market, which fits the definition of a joint venture.

To Enter the Mexican Retail Market, Wal-Mart Combined Its Efforts