A small-scale apparel manufacturer in Florida collaborates with several other similar firms and they form a separate company in India. None of the participants in this collaboration has previously had active operations in the Indian market. The newly created firm manufactures apparel suited to the tastes and preferences of the Indian customers. Identify the type of foreign market-entry approach depicted in this scenario.

Question

Quizplus · Accepted Answer

This scenario describes a consortium, where multiple firms collaborate to form a separate company in a new market (India) to manufacture products suited to local tastes. This approach allows them to share risks and resources in entering a foreign market where they previously had no operations.

A Small-Scale Apparel Manufacturer in Florida Collaborates with Several Other