At stage 1 in the formation of an alliance,a firm must _____.
A) check the degree of tacitness
B) evaluate institutional constraints
C) decide whether growth can be achieved through market transactions
D) choose between a contract or an equity approach

Question

At stage 1 in the formation of an alliance,a firm must _____.
A) check the degree of tacitness 
B) evaluate institutional constraints 
C) decide whether growth can be achieved through market transactions 
D) choose between a contract or an equity approach

Quizplus · Accepted Answer

At stage 1, a firm must evaluate whether growth can be achieved through market transactions, meaning whether they can achieve their desired growth through normal market transactions or if they need to form an alliance. Checking for tacitness, evaluating institutional constraints, and choosing between a contract or equity approach come at later stages in the formation of an alliance.

At Stage 1 in the Formation of an Alliance,a Firm