One disadvantage of a strategic alliance is
A) it is difficult for a firm to enter into a foreign market.
B) the fixed costs of developing new products tend to increase.
C) competitors gain a low-cost route to new technology and markets.
D) a foreign firm tends to face higher trade barriers.
E) it always leads to a loss for either of the firms involved.

Question

Quizplus · Accepted Answer

Strategic alliances can give competitors access to new technologies and markets, potentially reducing the competitive advantage of the firms involved.

One Disadvantage of a Strategic Alliance Is