Jimpeg, a manufacturer of imaging and optical products based in the U.S., operates under the name of Pixpem and SetJpeg in six different countries. The company operates using different names, but it sells the same products in every country. The revenue generated in the different countries goes back to the parent company. Which of the following methods for conducting global business has Jimpeg used in this scenario?
A) The formation of a joint venture
B) The establishment of a strategic alliance
C) The formation of wholly owned affiliates
D) The establishment of a cooperative contract

Question

Quizplus · Accepted Answer

Jimpeg has established wholly owned affiliates in different countries, as it operates under different names but sells the same products and the revenue generated goes back to the parent company. A joint venture involves forming a new separate entity with a partner in a foreign country, while a strategic alliance is a partnership where two companies share resources and expertise, but do not form a separate entity. A cooperative contract involves sharing costs and risks with foreign partners to develop new products or enter new markets.

Jimpeg, a Manufacturer of Imaging and Optical Products Based in the U.S