Which of the Following Is a Potential Benefit of Forming

question 16

Multiple Choice

Which of the following is a potential benefit of forming a strategic alliance?

• A) The assurance that the new product developed through the alliance will be successful.
• B) One of the organizations in the alliance will gain a competitive advantage over the other.
• C) It will lead to market expansion and greater penetration of current markets.
• D) It typically reduces the market risk of introducing a new product.

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Definitions:

Environmental Scanning

The continuous process of gathering information about events and trends in the environment external to an organization to assist in strategic planning.

Overall GDP

Gross Domestic Product (GDP) measures the total value of all goods and services produced over a specific time period within a country's borders.

Purchasing Power Parity

An economic theory and a method used to determine the relative value of currencies, based on the purchasing power of different currencies for the same goods.

Currency Exchange Rates

The value of one currency for the purpose of conversion to another, determining how much of one currency can be exchanged for another.