Greentech, Inc., is a bioengineering firm specializing in food crops. It is considering a cooperative alliance with an Asian agribusiness firm, AsiaFoods, to jointly produce improved crops for the Asian market. The risks that Greentech should consider before entering this alliance include all of the following EXCEPT:
A) Has AsiaFoods accurately represented its competencies?
B) Will AsiaFoods make alliance-specific investments?
C) Can Greentech expect opportunistic behavior from AsiaFoods?
D) Will Greentech be able to use a cost-minimization management strategy in the AsiaFoods alliance?

Question

Quizplus · Accepted Answer

The risks that Greentech should consider before entering this alliance include A) whether AsiaFoods has accurately represented its competencies, B) whether AsiaFoods will make alliance-specific investments, and C) whether Greentech can expect opportunistic behavior from AsiaFoods. The question of whether Greentech will be able to use a cost-minimization management strategy in the AsiaFoods alliance is not a risk factor, but rather a consideration for how to manage the alliance once it has been formed.