Apollo Tires sets up a manufacturing unit in Mexico.Following this,Renault-Nissan signs a supply contract with the tire multinational.In which of the following ways is Renault-Nissan likely to gain from the pact?

Question

Quizplus · Accepted Answer

Renault-Nissan is likely to gain from the pact by having access to Apollo Tires' expertise and knowledge related to the tire manufacturing industry. This will enable the companies to share knowledge within the same value chain system and improve their overall efficiency and effectiveness. Different styles of management, organization, and strategy may not necessarily contribute to Renault-Nissan's gains. The availability of natural resources at low cost, growth potential, and large size of the market or government policies in the host country are not mentioned as factors that would directly benefit Renault-Nissan in this scenario.

Apollo Tires Sets Up a Manufacturing Unit in Mexico