The formation of alliances, especially joint ventures, has been stimulated by all of the following needs and desires except __________.
A) the need to share and lower the costs of high-risk, technologically intensive development projects, such as computer-based information systems
B) the desire to maximize costs by sharing the large fixed-cost investments for manufacturing plants in some locations and in industries such as autos and steel.
C) the desire to learn another firm's technology and special processes or to gain access to customers and distribution channels
D) the desire to participate in the evolution of competitive activity in growing global industries

Question

Quizplus · Accepted Answer

The correct answer is B because alliances and joint ventures are typically formed to share and reduce costs, not to maximize them. Sharing large fixed-cost investments is a strategy to lower overall costs for the companies involved, not to increase them.

The Formation of Alliances, Especially Joint Ventures, Has Been Stimulated