Friums & You,a Canadian firm,together with its subsidiaries,manufactures and markets snacks,confectionery,and quick meal products worldwide.The firm has been trying to expand its business into China.As Chinese laws require foreign firms to do business with local companies,Friums & You will have to be involved in a _____ to start operations in China.

Question

Quizplus · Accepted Answer

A strategic alliance with a local Chinese company would enable Friums & You to enter the Chinese market without violating Chinese laws. In a strategic alliance, two companies form a partnership to achieve mutual benefits, such as market access and technology exchange. This option would allow Friums & You to gain local expertise, knowledge, and resources from its Chinese partner. A limited liability partnership would require both parties to share profits, whereas a buyout or hostile takeover would involve acquiring or taking control of the local Chinese company, which may not be feasible or desirable for Friums & You.

Friums & You,a Canadian Firm,together with Its Subsidiaries,manufactures and Markets