Nuhitzu believes it has the technological expertise to produce communication systems that will be leaders around the globe. Boston Electronics is widely regarded as having excellent management systems and superior marketing programs. To utilize these strengths, the two firms might form a(n) ____ to work together on a worldwide basis.
A) licensing agreement
B) export trading company
C) joint agreement
D) strategic alliance
E) multinational enterprise

Question

Quizplus · Accepted Answer

A strategic alliance is a cooperative agreement between two or more companies to work together to achieve common goals. In this case, Nuhitzu and Boston Electronics could form a strategic alliance to combine Nuhitzu's technological expertise with Boston Electronics' management and marketing strengths, and work together on a worldwide basis. Options A, B, and E do not involve the same level of collaboration as a strategic alliance, and option C is too broad a term that could refer to multiple types of agreements.

Nuhitzu Believes It Has the Technological Expertise to Produce Communication