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?
A)different styles of management, organization, and strategy
B)knowledge sharing within same value chain system
C)availability of natural resources at low cost
D)growth potential and large size of the market
E)government policies in the host country

Question

Quizplus · Accepted Answer

Renault-Nissan is likely to gain from the pact through knowledge sharing within the same value chain system. By signing a supply contract with Apollo Tires, Renault-Nissan can benefit from Apollo's expertise and knowledge of tire manufacturing and distribution, and can also collaborate on improvements in the supply chain process. This can lead to higher quality, greater efficiency, and ultimately reduced costs for Renault-Nissan.

Apollo Tires Sets Up a Manufacturing Unit in Mexico