Globe Cars, a leading automobile ancillary firm in China, has decided to form a global alliance with Fulda, a German tire manufacturing company.Which of the following is a primary challenge that Globe Cars is most likely to face in this alliance?
A)existing competitors
B)risk of investment
C)extreme trade barriers in China
D)differences in national cultures

Question

Quizplus · Accepted Answer

Differences in national cultures could be a primary challenge for Globe Cars in forming an alliance with Fulda as they are from different countries and may have different business practices, communication styles, and expectations. This could lead to misinterpretations or misunderstandings, which could affect the success of the alliance. The other options, such as existing competitors, risk of investment, and extreme trade barriers, could also be challenges, but they are not as relevant in this scenario as forming an alliance with a foreign company.

Globe Cars, a Leading Automobile Ancillary Firm in China, Has