Agreements between two or more independent firms to cooperate for the purpose of achieving common goals are referred to as
A) compacts.
B) global partnerships.
C) strategic alliances.
D) free trade agreements.
E) economic coalitions.

Question

Quizplus · Accepted Answer

Strategic alliances are partnerships between independent firms that agree to cooperate to achieve common goals. This type of collaboration allows companies to share resources, knowledge, and expertise to enter new markets, reduce costs, and increase competitiveness without merging or acquiring each other. Strategic alliances can take various forms, such as joint ventures, licensing agreements, distribution agreements, research and development consortia, marketing alliances, and outsourcing contracts. The success of a strategic alliance depends on various factors, such as trust, compatibility, communication, governance, and mutual benefits.

Agreements Between Two or More Independent Firms to Cooperate for the Purpose