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If GM and Ferrari were to combine some of their automobile manufacturing operations to make a new line of cars under a new brand name, this would be characterized as a:

A. collusive tactic
B. merger
C. cross-border strategic alliance
D. international acquisition

Answer :

Final answer:

If GM and Ferrari combined operations to make a new line of cars under a new brand, it would be classified as a cross-border strategic alliance, which allows sharing of costs and expertise without merging into a single firm or one acquiring the other.

Explanation:

If GM and Ferrari were to combine some of their automobile manufacturing operations to create a new line of cars under a new brand name, this action would be characterized as a cross-border strategic alliance. This is because they are not merging into a single firm, nor is one company buying the other.

Instead, they are collaborating across national borders to combine their strengths and create a new product offering. This kind of alliance often allows companies to share costs, resources, and expertise while maintaining their individual identities and operations.

Corporate mergers and acquisitions are similar in that they both involve two formerly independent firms coming under common ownership and operation. A merger typically involves companies of similar sizes joining forces, while an acquisition happens when one company purchases another.

However, in the scenario described, the companies are neither merging nor is one acquiring the other; they are creating a collaborative venture, which is why the term cross-border strategic alliance is most appropriate.

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