Question

1.) Which is WRONG about strategic alliances:   

A. strategic alliances can assist a company in overcoming trade barriers.

B. in order for the alliance to persist, each partner must continue to see value in the relationship.

C. successful alliances generally involve partners of about the same financial size.

D. a strategic alliance can help to overcome absent key success factors in markets.

2.) Which is WRONG with regard to global strategy:   

A. companies may experience manufacturing scale economies by expanding into additional global markets.

B. global competitors can subsidize aggressive tactics in one country because of large cash flows in others.

C. strategic business units may be integrated to respond to the investment needed to succeed globally.

D. a low-cost manufacturing advantage can be expected to last for a decade or more.

Answer 1

The answer to the following questions is as follows:-

1. C. successful alliances generally involve partners of about the same financial size.

That is generally not true. Companies in an alliance can be of different size financially and being on the same level is not necessary.

2. B. global competitors can subsidize aggressive tactics in one country because of large cash flows in others.

An aggressive competitor can decide that the cash flow generated in its home market can be used to subsidize aggressive tactics because of large cash flows in the other.

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