The use of alliances:
A)is unlikely to yield success if partnering firms are headquartered in the same country
B)may be too restrictive to facilitate entry into new markets
C)usually increases the investment necessary to introduce new products
D)between firms located in different international markets is increasing

Question

Quizplus · Accepted Answer

The statement "between firms located in different international markets is increasing" suggests that alliances between firms in different countries are becoming more common, which implies that they are effective in facilitating entry into new markets. Option A is incorrect as partnering firms can still succeed even if they are headquartered in the same country. Option B is also incorrect as alliances can help firms overcome barriers to entry. Option C is incorrect as the investment needed to introduce new products might not necessarily increase with alliances.

The Use of Alliances