Which of the following reasons helps explain why eBay may have preferred to enter into an alliance to enter the Korean online auction industry rather than going it alone?

Question

Quizplus · Accepted Answer

The level of transaction-specific investments required to enter the Korean online auction industry is moderate, which means that there is some investment required to enter the market. This increases the risk for eBay to enter the market alone, especially as they are new to the Korean market. Therefore, it makes sense for eBay to enter into an alliance with a Korean partner who already has the necessary knowledge and network in the local market.

Which of the Following Reasons Helps Explain Why EBay May