McDonalds operates restaurants around the world in airports.The agreement between McDonalds and the airports is a(n)
A)global sourcing agreement.
B)strategic alliance.
C)global business.
D)exporting agreement.
E)direct investment.

Question

Quizplus · Accepted Answer

The agreement between McDonalds and the airports is a strategic alliance. A strategic alliance is a partnership between two or more companies that agree to cooperate in order to achieve a specific objective, in this case, to operate McDonald's restaurant in the airports. Global sourcing agreements, exporting agreements, and direct investments do not accurately describe the relationship between McDonald's and the airports. While McDonald's may be considered a global business, that term does not accurately describe the agreement with the airports.

McDonalds Operates Restaurants Around the World in Airports