The Cooper Tire & Rubber Company has been searching for less expensive raw materials for manufacturing its bicycle tires. Cooper has found that there are less expensive sources in the country of Indonesia, but it needs to form a partnership with the government of Indonesia in order to gain access to the country's rubber. What type of partnership will need to be formed?

Question

Quizplus · Accepted Answer

Cooper Tire & Rubber Company will need to form a joint venture with the government of Indonesia in order to gain access to the country's rubber. A joint venture is a partnership in which each partner contributes resources and shares in the profits and losses of the venture. This will allow Cooper Tire & Rubber Company to gain access to the less expensive raw materials it needs for its bicycle tires.

The Cooper Tire & Rubber Company Has Been Searching for Less