Host countries with emerging economies may encourage local firms to engage in strategic alliances with firms from developing countries because

Question

Quizplus · Accepted Answer

Strategic alliances with firms from developing countries may provide access to their technology, which can be beneficial for the host-country firm. This can help the firm improve their competitiveness and potentially expand into new markets. Additionally, strategic alliances may be preferred over licensing arrangements because there may be less cultural conflict and disruption to the host-country's economy. However, asset nationalization is a risk that should be considered when forming alliances with firms from emerging economies.

Host Countries with Emerging Economies May Encourage Local Firms to Engage