"Renault-Nissan-Mitsubishi Alliance" - A French-Japanese strategic alliance between the automobile manufacturers Renault (based in Boulogne-Billancourt, France), Nissan (based in Yokohama, Japan) and Mitsubishi Motors (based in Tokyo, Japan).

1. What is most likely the type (i.e., nonequity alliance, equity alliance, or joint venture) of the alliance? Why do the firms choose this type of the alliance?

2. How does the alliance create value for its member firms? List all possible ways of value creation and elaborate on how they create value.