What Is the Main Reason Why Formal Institutions Limit Alliances

question 24

Multiple Choice

What is the main reason why formal institutions limit alliances and acquisitions in the areas of formal market entry modes?

• A) Many governments discourage acquisitions in order to establish local-only subsidiaries.
• B) The liability of foreignness is guaranteed to make the alliances or acquisitions fail.
• C) The governments are unable to tax acquisitions by foreign firms.
• D) The institutions do not limit the firms in regards to entry modes.

---

Definitions:

Driver's License

is an official document permitting a specific individual to operate one or more types of motorized vehicles on public roads.

Road Test

An examination to test a person's ability to drive a vehicle, which typically includes maneuvers and obedience to traffic laws under the supervision of an examiner.

Academic Aptitude Test

Standardized tests designed to measure a student's readiness for academic pursuits and potential for success in educational settings.

College Students

Individuals enrolled in institutions of higher education, often pursuing degrees or professional certifications.