Why did Boeing establish a strategic alliance with several Japanese partners to help develop its 777 jet? What was the scope of the alliance?
What will be an ideal response?
Boeing formed a strategic alliance with several Japanese partners to help reduce the risk involved in developing its 777 aircraft. Developing the new plane required billions of dollars of R&D up front. Because Boeing could not be sure how well the new aircraft would be received, the company looked for ways to reduce its financial exposure, and established an alliance with Fuji, Mitsubishi, and Kawasaki. Boeing is the controlling partner in the alliance. The strategic alliance between Boeing and its three Japanese partners was primarily a financial alliance because Boeing wanted the other firms to help cover R&D and manufacturing costs. Those firms, in turn, saw a chance to gain valuable experience in commercial aircraft manufacturing as well as profits.
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The _____ is a trade agreement that has dramatically lowered trade barriers worldwide and also created the World Trade Organization
a. European Union b. General Agreement on Tariffs and Trade (GATT) c. North American Free Trade Agreement (NAFTA) d. Uruguay Round
A company's stockholders equity consisted of $7 par common stock, 200,000 shares authorized and 100,000 shares issued. The Paid- in capital in excess of par had a balance of $160,000. There were 2,000 shares held in treasury at a total cost of $16,000. If the total stockholders equity is $974,000, determine the balance of retained earnings.
a.$130,000 b.$128,000 c.$114,000 d.$860,000