Question

Brooks & Bill is an organic chemicals and fertilizer manufacturer. It allows Fixit Chemicals, a company based in another country, to manufacture Brooks & Bill's products using the Brooks & Bill name, logo, and materials. Fixit Chemicals then sells these products in its own local market. Fixit Chemicals also pays a royalty to Brooks & Bill for every unit that it sells. Which of the following international business strategies is Brooks & Bill most likely using in the given scenario?

A) ExportingB) LicensingC) A joint ventureD) A strategic alliance

Answer 1

Answer: Option D

Explanation: A strategic alliance refers to an arrangement between two or more independent parties in which they agree to operate their business for the mutual benefit objectives.

In the given case, Fixit chemicals are selling a product with the name of a different organisation, that is, Brooks and bill. Both the companies makes profit as brooks get royalty and fixit get profit from selling.

Hence from the above we can conclude that the given case is an example of strategic alliance.