The risks associated with collaboration are limited to the inability of both firms to agree on the terms of the partnership.

Question

Quizplus · Accepted Answer

The risks of collaborating with other firms may be important when it involves competitors.As such,there is always the risk that one of the partners will learn faster than the other partner,leading to the development of a competitive edge over the other partner.Collaboration may also be a precursor for a takeover by the other partner,or result in one partner trying to capture investment initiative to use the partnership to erode the other's competitive position.Despite these risks,such Machiavellian intentions and actions are not the norm.In most instances,MNEs are able to resolve the risks and costs of collaboration.

The Risks Associated with Collaboration Are Limited to the Inability