ABC Appliance (Scenario)
The ABC Appliance Corporation is a Florida-based manufacturer of refrigerators, dishwashers, and other large household appliances. ABC takes advantage of NAFTA, and as a result, the firm has loyal customers across North America. ABC managers would like to expand into the Asian market, but are unsure of the best way to do so. ABC managers are meeting to discuss various possibilities for entering the Asian market.
-Which of the following most likely supports a decision to enter the Asian market through a project-based, non-equity collaborative venture with an Asian appliance manufacturer to create an environmentally-friendly dishwasher?

Question

Quizplus · Accepted Answer

A project-based, non-equity collaborative venture with an Asian appliance manufacturer would involve both firms pooling resources without seeking ownership. Option A implies the creation of a new legal entity, which would result in an equity-based joint venture. Option C relates to ABC building a new plant independently, which is not a collaborative venture. Option D involves government incentives and does not necessarily involve a partnership with an existing Asian appliance manufacturer.

ABC Appliance (Scenario) The ABC Appliance Corporation Is a Florida-Based Manufacturer of Refrigerators