Alcatel-Lucent and Huawei Technologies Ltd. (headquartered in China) announced they will establish an alliance for developing ultra-broadband access solutions for markets around the world. The new company will combine Huawei's market-leading broadband access solutions with Alcatel-Lucent's voice and broadband networking technologies to create a new product designed to be a leader in the industry in value and performance. What is another name for this alliance?
A)contract manufacturing
B)a trade bypass
C)licensing
D)a joint venture

Question

Quizplus · Accepted Answer

This is a clear example of a joint venture, where two companies come together to form a new entity for a specific purpose. This allows them to share resources and expertise to create a product that they could not create alone.