To enter the European market, Starbucks joined in a cooperative venture with Bon Appetit Group A.G. in Switzerland. Bon Appetit has the recognized brand name, and Starbucks has the product and the expertise to run coffeehouses. This is an example of a(n) ________.

Question

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This scenario describes a strategic alliance, where two separate companies join forces for mutual benefit, in this case, to enter a new market. It differs from a franchise agreement, where a company grants a license to another company to use its brand name and business model in exchange for a fee. Direct investment involves a company establishing its own operations in a foreign market, while backward invention refers to creating a simpler version of a product for a specific market. Expropriation agreement involves a government taking control of a foreign company's assets without compensation.

To Enter the European Market, Starbucks Joined in a Cooperative