Which of the Following Is NOT a Potential Benefit of Cross-Border

question 19

Multiple Choice

Which of the following is NOT a potential benefit of cross-border strategic alliances or other cooperative arrangements between foreign and domestic companies?

• A) Gaining wider geographic coverage and access to attractive country markets through the foreign partner's familiarity with the market.
• B) Gaining better access to scale economies in production and/or marketing.
• C) Filling competitively important gaps in their technical expertise and/or knowledge of local markets.
• D) A greater ability to employ a global strategy (as opposed to a multicountry strategy).
• E) Sharing distribution facilities and dealer networks,thus mutually strengthening their access to buyers.

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Definitions:

Carrying Cost

The total cost of holding inventory, including storage, insurance, taxes, opportunity costs, and depreciation, over a certain period of time.

Goods Sold

Refers to products that have been sold and transferred from the seller to the buyer.

Cash Purchase Discount

A reduction in the amount paid for goods or services in exchange for paying in cash rather than credit.

Interest Expense

The cost incurred by an entity for borrowed funds, often a significant component of financial expense in the income statement.