Which of the Following Is a Disadvantage of Strategic Alliances

question 12

Multiple Choice

Which of the following is a disadvantage of strategic alliances?

• A) They are the most expensive among the investment entry modes.
• B) They increase the likelihood that one partner will try to take advantage of the other.
• C) They create future competitors.
• D) They fail to tap into their competitors' specific strengths.

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Definitions:

Contrast Effect

A cognitive bias where the value or quality of an object is perceived differently when compared alongside other objects, significantly altering perception and judgement.

Balance Theory

A psychological theory suggesting that individuals strive for consistency and balance in their relationships and beliefs for psychological comfort.

Unit Relation

The way in which different components or elements are connected and interact within a system or structure.

Endorsement

The act of publicly recommending or supporting a product, service, or idea, often by a celebrity or recognized authority.