Alturo Corporation provides IT products and services in five European countries.Its services include IT infrastructure,maintenance services,and technology-based support services.In an attempt to explore the Asian market,Alturo considers a joint venture with CST Corporation,a Chinese company that provides services and products for computer hardware products.The company initiates negotiations with the executives of CST Corporation.Which of the following pieces of information,if true,would construct a symmetric bargaining situation under this circumstance?
A) Alturo Corporation is financially stronger than CST Corporation and is considering an acquisition also.
B) Alturo Corporation has been experiencing a dip in their sales at home and the alliance is very crucial for them to better their performance.
C) CST Corporation is expected to benefit more from the joint venture than Alturo Corporation.
D) CST and Alturo are large corporations in terms of financial strength and both companies are expected to benefit evenly from the joint venture.

Question

Quizplus · Accepted Answer

A symmetric bargaining situation is one where both parties involved have equal bargaining power. Option D states that both CST and Alturo are large corporations in terms of financial strength and are expected to benefit evenly from the joint venture, which implies a situation of symmetry. Options A and B indicate an imbalance in bargaining power as Alturo is either financially stronger or in a weaker market position than CST. Option C indicates a situation where CST would have more bargaining power, which is not symmetric.

Alturo Corporation Provides IT Products and Services in Five European