If GM and Ferrari were to combine some of their automobile manufacturing operations to make a new line of cars under a new brand name, this would be characterized as a(an)
A) collusive tactic.
B) merger.
C) cross-border strategic alliance.
D) international acquisition.

Question

Quizplus · Accepted Answer

A cross-border strategic alliance is a type of partnership between two or more companies from different countries. In this case, if GM and Ferrari were to combine some of their operations to make a new line of cars under a new brand name, it would be considered a cross-border strategic alliance as they are from different countries (USA and Italy, respectively). A merger would imply a complete integration of the two companies, which is not the case here. A collusive tactic is when companies conspire to limit competition, which is not applicable here either. An international acquisition entails one company buying another company located in a different country, which is not what is happening in this scenario.

If GM and Ferrari Were to Combine Some of Their