Caterpillar Inc. is the world's largest manufacturer of earth-moving and construction equipment. Kirovsky is a large Russian manufacturer of the same type of products. When the two companies created Nevamash, a new company, what were they entering?
A)an import/export partnership
B)a countertrade
C)a disintermediation agreement
D)a joint venture

Question

Quizplus · Accepted Answer

The creation of Nevamash represents a joint venture, which is a partnership between two or more companies to combine their resources and expertise to create a new business or project. This is different from an import/export partnership, which typically involves buying and selling goods or services between companies, a countertrade, which involves exchanging goods or services instead of using money, and a disintermediation agreement, which involves eliminating intermediaries in a supply chain.