Petnro, a bike manufacturing firm based in the U.S., operates bike manufacturing plants in China, Japan, Taiwan, and Singapore under the name of BikMe. The parent company receives all the profits made by these facilities, and it has complete control over all the different segments of the plants. Which of the following methods for conducting global business has Petnro used in this scenario?

Question

Quizplus · Accepted Answer

Petnro, as the parent company, has complete control over all segments of the manufacturing plants in different countries, and receives all the profits made by these facilities. This is indicative of the formation of wholly owned affiliates, where the parent company has complete ownership and control over its operations in foreign countries. A joint venture would involve shared ownership and control with a local partner, while a strategic alliance would involve collaboration between two or more companies on a specific project or area of expertise. A cooperative contract involves less ownership and control by the parent company than wholly owned subsidiaries, and typically involves a short-term partnership focused on a specific project or set of activities.

Petnro, a Bike Manufacturing Firm Based in the U