While it is often the case that there will be important information asymmetries between firms in an alliance, these asymmetries are likely to be ________ when alliances partners come from different countries.

Question

Quizplus · Accepted Answer

Information asymmetries refer to situations in which one party in a transaction has more and better information than the other party. In international alliances, there may be differences in language, culture, laws, and regulations, which can increase these information asymmetries. Therefore, the correct answer is (C) much greater.

While It Is Often the Case That There Will Be