Caterpillar, Inc. is the world’s largest manufacturer of earthmoving and construction equipment. Kirovsky is a large Russian manufacturer of the same type of products. The two companies entered into a(n) _____ and created NEVAMASH, a new company.
It is an example of joint venture. In a joint venture, two businesses pools their resources to manufacture a product that has best qualities and helps them achieve a greater market share due to uniqueness of the product arising from two companies research and development and their intellectual properties.
