Strategic alliances frequently play an important role in a ﬁrm's internationalization strategy because:

Question

Quizplus · Accepted Answer

Strategic alliances provide internationalizing firms with local knowledge and access to distribution channels that a local partner can provide, which is often lacking in the firms. This helps in overcoming the barrier to entry in a foreign market. A and C are incorrect as alliances do not necessarily offer greater security or share high risks involved in international expansion. Option D is also incorrect as the level of flexibility provided by alliances is debatable and depends on the nature of the partnership.

Strategic Alliances Frequently Play an Important Role in a ﬁRm's