Question

A small-scale apparel manufacturer in Florida collaborates with several other similar firms and they form a separate company in India. None of the participants in this collaboration has previously had active operations in the Indian market. The newly created firm manufactures apparel suited to the tastes and preferences of the Indian customers. Identify the type of foreign market-entry approach depicted in this scenario

Answer 1

consortia, a type of strategic alliance

Step-by-step explanation:

Consortia is a type of strategic alliance which is very similar to joint ventures except that:

1. consortia usually involves a large number of businesses
2. they operate in countries in which none of the participants is currently active in

Consortia is used by small or medium sized companies to pool financial and managerial resources in order to lower risks.