Moon Flower cosmetics company executives are aware that their Asian customer base is interested in advanced skin care treatments beyond Moon Flower's traditional herbal and organic compounds. Moon Flower and a large American chemical company are in discussions to create a 50-50 partnership in a new firm which would create skin care treatments based on innovative chemical formulations which would be marketed both in Asia and in the U.S. Beyond being a cross-border alliance, this partnership can be called a(an)
A) nonequity strategic alliance.
B) joint venture.
C) horizontal complementary alliance.
D) equity strategic alliance.

Question

Quizplus · Accepted Answer

The partnership between Moon Flower and the American chemical company to create a new firm for skin care treatment indicates a joint venture where both companies will share ownership, risks, and profits equally.

Moon Flower Cosmetics Company Executives Are Aware That Their Asian