Ericsson is a Swedish telecommunications firm. GCCT is a French electronics switch manufacturer. With the use of Ericsson's money and technology and GCCT's knowledge of the French market, the two companies created a new entity and beat out Northern Telecom for a $100 million contract with the French government. What is the relationship between the two companies an example of?
A)contract manufacturing
B)exporting
C)direct investment
D)a joint venture

Question

Quizplus · Accepted Answer

The relationship between Ericsson and GCCT is an example of a joint venture, as they combined their resources, knowledge, and expertise to create a new entity to pursue a business opportunity in the French market.

Ericsson Is a Swedish Telecommunications Firm