Strategic Alliances Are Generally Viewed as a Poor Substitute for Diversification

question 19

True/False

Strategic alliances are generally viewed as a poor substitute for diversification since the economies of scope in diversification can be found in strategic alliances.

---

Definitions:

Import/Export

The business of trading goods and services across international borders, involving the shipment of products from a country of origin (export) and bringing in goods from abroad (import).

Licensing

The process of leasing a legally protected entity (such as a trademark, patent, or technology) for the purpose of generating revenue.

High Cost Reductions

Strategic measures aimed at significantly lowering the expenses incurred by a business or organization.

Transnational Strategy

A multinational corporation’s approach that combines global integration with local responsiveness.