One Disadvantage of a Strategic Alliance Is

question 55

Multiple Choice

One disadvantage of a strategic alliance is

• A) it is difficult for a firm to enter into a foreign market.
• B) the fixed costs of developing new products tend to increase.
• C) competitors gain a low-cost route to new technology and markets.
• D) a foreign firm tends to face higher trade barriers.
• E) it always leads to a loss for either of the firms involved.

Recognize the different methods and legal frameworks for conducting international business, including exporting, direct investment, and the use of foreign agents and distributors.

Understand the role of national laws and their extension to international law and how they influence international business.

Acknowledge the significance of jurisdictional aspects and choice-of-law in international contracts and disputes.

Identify the impact of international law on space exploration and the uses of outer space.

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Definitions:

Budget Deficit

The condition in which a nation spends more than it takes in from taxes.

Agricultural Commodities

Products derived from agriculture such as grains, livestock, and dairy that are traded on various commodity exchanges.