What is the primary distinction between a joint venture and a strategic alliance in international marketing?
A) Strategic alliances are only formed between companies from well-developed countries whereas joint ventures are between companies from economically-diverse countries.
B) A joint venture involves only two companies whereas a strategic alliance is formed between three or more companies.
C) A joint venture is defined in scope, while a strategic alliance is typically represented by an agreement to work together.
D) A joint venture is formed between companies with dissimilar product offerings while a strategic alliance is formed between companies with similar product offerings.
E) A joint venture is simply a financial investment in a foreign firm while a strategic alliance involves more than just financial support.

Question

Quizplus · Accepted Answer

The primary distinction between a joint venture and a strategic alliance in international marketing is that a joint venture is defined in scope, while a strategic alliance is typically represented by an agreement to work together. A joint venture involves the sharing of resources, knowledge, and risk between two companies to achieve a specific objective, while a strategic alliance is an agreement between two or more companies to collaborate on a project or initiative without creating a new entity. Joint ventures are usually more extensive than strategic alliances and require more significant investment from both companies.

What Is the Primary Distinction Between a Joint Venture and a Strategic