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Japanese telecom NTT DoCoMo Inc. and Chinese Internet search operator Baidu Inc. established an alliance to distribute games and other mobile-phone content. Baidu will own 80 percent of this collaboration with DoCoMo holding the remaining 20 percent. This collaborative arrangement is an example of a(n):

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Answer:

The correct answer is c) equity  strategic alliance.

Explanation:

A strategic alliance is when two companies, when analyzing the market, realize that they need an alliance for the growth of their company. Usually, these alliances with competing companies or companies that provide what the other seeks to position itself in the market.

Strategic alliances are usually made to avoid the legal paperwork involved in acquiring a company. In the case of Japanese telecommunications, they formed a strategic equity alliance where one of them will have an 80% stake in the company and the other 20%, all this to strengthen the distribution of its products.

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