When Entering a Foreign Market, It Is Advisable for a New

question 77

Multiple Choice

When entering a foreign market, it is advisable for a new venture that has a core competency only in R&D to form a strategic alliance with a local partner because

• A) the local partner can better protect its proprietary know-how.
• B) building downstream complementary assets can be expensive and time-consuming.
• C) the strategic alliance will reduce the differentiation of its product and service offerings.
• D) the value gap created by the firm can be easily lowered in an alliance.

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Definitions:

Limited Jurisdiction

Limited jurisdiction refers to courts that are restricted in the types of legal matters they can hear and decide, often specializing in certain areas of law.

Small Claims Court

A specialized court that deals with disputes involving a limited amount of money, usually offering a faster and less formal setting than other courts.

Long-arm Statute

A state statute that grants to a state’s courts broad authority to exercise jurisdiction over out-of-state persons who have contacts with the state.

Principal Place of Business

The primary location where a company's business is conducted or managed.