Question

Jimpeg, a manufacturer of imaging and optical products based in the U.S., operates under the name of Pixpem and SetJpeg in six different countries. The company operates using different names, but it sells the same products in every country. The revenue generated in different countries goes back to the parent company. Which of the following methods for conducting global business has Jimpeg used in this scenario?
a. The formation of a joint venture
b. The establishment of a strategic alliance
c. The formation of wholly-owned affiliates
d. The establishment of a cooperative contract

Answer 1

Answer:

The formation of wholly owned affiliates.

Explanation:

When a company forms wholly owned affiliates the own companies that usually bear different names but sell the same products as the host company. This is done to reach different markets and project the business as a unique brand in the mind of customers in the target market.

Jimpeg, a manufacturer of imaging and optical products based in the U.S., operates under the name of Pixpem and SetJpeg in six different countries. The company operates using different names, but it sells the same products in every country. The revenue generated in different countries goes back to the parent company.

Jimpeg has formed wholly owned affiliates.