Which of the Following Is True About Alliances

question 2

Multiple Choice

Which of the following is true about alliances?

• A) Many alliance partners are also competitors.
• B) Alliances are often difficult to manage.
• C) The use of alliances is likely to decline as markets internationalize.
• D) All of the above.
• E) Two of A, B, and C.

---

Definitions:

Common External Tariff

A uniform tariff rate adopted by a customs union or common market on imports from countries outside the union.

Free Trade Area

A region where member countries have agreed to reduce or eliminate trade barriers, such as tariffs and quotas, among themselves.

Dumping

The practice wherein an exporter sells products in a foreign state for less than the price charged for the same or comparable goods in the exporter’s home market.

Auto Parts Industry

Refers to the sector of the economy focused on the manufacturing, distribution, and retailing of vehicle parts and accessories.