Legitimately, a Firm May Pursue an International Strategic Alliance for All

question 47

Multiple Choice

Legitimately, a firm may pursue an international strategic alliance for all of the following reasons EXCEPT to:

• A) enhance the compensation packages of top managers.
• B) leverage core competencies in new markets.
• C) operate within government restrictions in the local country.
• D) escape limited domestic growth opportunities.

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Definitions:

Income Elasticity of Demand

An indicator of the variation in the demand for a product as a result of changes in the income levels of consumers.

Normal Good

A good for which demand increases when consumer income rises, and decreases when consumer income falls.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, and vice versa.

Complementary Goods

Products or services that are typically consumed together, where the increase in demand for one leads to an increase in demand for the other.