Question

Which of the following statements is true of strategic alliances as disadvantages? a.The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. b.They are a way to bring together complementary skills and assets that both companies develop. c.They limit the entry of firms into foreign markets. d.Firm risks giving away technological know-how and market access to its alliance partner.

Answer 1

They are most beneficial when they join together resources and knowledge in a combination that complies with the VRIO framework.