Bell Pvt.Ltd., an American glassworks manufacturer, aims to expand its business to France.After considering its alternatives, Bell Pvt.Ltd.worked closely with a French glassworks manufacturer, Blue Stripes Inc.to create a new entity called Blue Stripes and Bell Corporation, by contributing their assets.Both the firms believed that this move would provide them with maximum benefits.Which of the following market entry options had the two firms used?

Question

Quizplus · Accepted Answer

The two firms have created a new entity called Blue Stripes and Bell Corporation by contributing their assets, which implies that they have formed a Joint Venture. A Joint Venture is a market entry option in which two or more firms form a new entity by contributing their resources and share the risks and rewards of the venture. In this case, Bell Pvt.Ltd. and Blue Stripes Inc. have formed a Joint Venture to expand their business in France, which is the best option for them to achieve their goals.

Bell PvtLtd