All of the Following Are Reasons Why Firms Use International

question 74

Multiple Choice

All of the following are reasons why firms use international strategic alliances EXCEPT:

• A) sharing of risks and resources.
• B) alliances facilitate the development of new capabilities.
• C) learning new competencies particularly those related to technology.
• D) strategic alliances are easy to manage.

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Definitions:

Production Possibilities Frontier

A curve demonstrating the maximum feasible amount of two goods that can be produced with available resources and technology.

Bowed Out

A graphical representation showing increasing opportunity costs, indicating that resources are not perfectly adaptable for producing different goods.

Production Possibilities Frontier

A chart that maps out all possible maximum production outcomes for a pair of items, given certain inputs which involve resources and more.

Interdependence

The mutual reliance between two or more entities, where the actions of one significantly affect the other, prevalent in global economies.