If GM and Toyota were to combine some of their automobile manufacturing operations,this would be characterized as a(n):
A) collusive tactic.
B) merger.
C) cross-border strategic alliance.
D) international acquisition.

Question

Quizplus · Accepted Answer

A cross-border strategic alliance involves the combination of resources and capabilities of two firms from different countries for mutual benefit without forming a new entity. In this case, GM and Toyota are combining some of their automobile manufacturing operations, which fits the definition of a cross-border strategic alliance. Choice A, collusive tactic, suggests illegal cooperation between firms to gain monopoly power, which is not applicable in this case. Choice B, merger, is a combination of two entities to form a new company, which is not what is happening in this situation. Choice D, international acquisition, involves one company acquiring another company in a different country, which is also not happening in this situation.

If GM and Toyota Were to Combine Some of Their