Discuss the Advantages of Entering into Strategic Alliances with Suppliers

question 42

Essay

Discuss the advantages of entering into strategic alliances with suppliers.In general,is alliance formation a good idea for international firms?

---

Definitions:

AFC

Average Fixed Costs, which are total fixed costs divided by the quantity of output produced.

AVC

Average Variable Cost; the total variable costs divided by the quantity of output produced.

ATC

Average Total Cost, which is the total cost divided by the quantity of output produced, representing the per-unit production cost.

Marginal Product

The additional output derived from the addition of one more unit of a variable input, holding all other inputs constant.