According to Gupta and Govindarajan, an alliance-based entry strategy is most suitable when ________.
A)firms have a significant amount of capital
B)the risk of asymmetric learning by the partner is low
C)cultural distance between home and host countries is extremely low
D)the subsidiary would be highly integrated with the rest of the global operations

Question

Quizplus · Accepted Answer

Gupta and Govindarajan suggest that an alliance-based entry strategy is most suitable when the risk of asymmetric learning by the partner is low. This means that the partner in the alliance is not likely to gain more knowledge or expertise than the firm entering the foreign market. Other factors such as capital availability, cultural distance, or integration with global operations may not necessarily determine the suitability of an alliance-based entry strategy.

According to Gupta and Govindarajan, an Alliance-Based Entry Strategy Is