Final answer:
A consortium is the correct term for an arrangement where multiple high-tech companies join forces to enter the Chinese market. This strategy offers numerous benefits including industry strength, shared risks, and potential for unified lobbying. It aligns with broader business practices such as vertical mergers and conglomerate formations.
Step-by-step explanation:
Yes, the arrangement where ten high-technology companies joined forces to produce and market their products in China can indeed be referred to as a consortium. This type of collaboration allows companies to leverage each other's strengths, resources, and expertise to enter a new market, which can be particularly beneficial in a complex and highly regulated environment like China.
Several competing corporations might join together in such an association for a number of reasons, such as strength in numbers, common industry issues, and aligned interest on governmental policies.
Furthermore, such business practices may be viewed in the context of different types of corporate mergers. A vertical merger involves different steps of manufacturing and can be a strategy to protect against the loss of suppliers or to streamline production processes.
A conglomerate like Ford Motor Company consists of multiple businesses producing varied products under one corporate umbrella, offering diversification and protection against individual market fluctuations.
Entering the Chinese market is especially strategic for multinationals. Since the Opening of China, the country has been crucial for multinational company (MNC) growth, becoming the world's second-largest economy and paving the way for potentially becoming the largest by 2030. Establishing a presence there can give access to a vast consumer market and significant manufacturing capabilities.