A heavy equipment manufacturer is in talks with several other similar businesses about moving into a foreign market. Their primary goal for working together is to lower their financial risk, so they are considering a consortium. What should they know about consortia?

Answer: Consortia are Associations or Marketing organizations which link together small to medium sized independent agencies to leverage purchasing power and marketing opportunities.

Explanation: since this heavy equipment manufacturers wants to move in the foreign market and lower the financial risk, it is important they partner together to achieve is goal. Examples of Consortia are American Express, Carlson Wagonlit, BCD Travel or HRG. These companies are combinations of contributed efforts. They partnered together to bear one name with each branches undergoing agreements.