Stars Co. closed an old automobile manufacturing plant in California because it had become too costly and inefficient to run. Later, XYZ Co. agreed to reopen the plant and manage it with Stars through a business company called New United Motor Manufacturing, Inc. The new company was owned equally by the two partners and each firm entered into the deal primarily to acquire knowledge. XYZ wanted to learn more about how to deal with labor and parts suppliers in the U.S market, and Stars wanted to observe Japanese management practices firsthand.What types of business did XYZ and Stars agree on? * O Franchising O Licensing agreement O Importing and exporting Strategic Alliance

Stars Co. closed an old automobile manufacturing plant in California because it had become too costly and inefficient to run. Later, XYZ Co. agreed to reopen the plant and manage it with Stars through a business company called New United Motor Manufacturing, Inc. The new company was owned equally by the two partners and each firm entered into the deal primarily to acquire knowledge. XYZ wanted to learn more about how to deal with labor and parts suppliers in the U.S market, and Stars wanted to observe Japanese management practices firsthand.What types of business did XYZ and Stars agree on? * O Franchising O Licensing agreement O Importing and exporting Strategic Alliance

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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