ExxonMobil enters into a pact with Gazprom, the world's largest natural gas extractor, to set up a processing unit in Baku, Azerbaijan. Which of the following is most likely the reason for ExxonMobil to opt for this strategic alliance?
A)to gain access to new customers
B)to scale back its core competencies
C)to restrict its factors of production
D)to gain access to low-cost inputs of production
E)to better compete with Gazprom

Question

Quizplus · Accepted Answer

ExxonMobil is likely opting for this strategic alliance with Gazprom to gain access to low-cost inputs of production, particularly natural gas, which is a key input for ExxonMobil's operations. The processing unit in Baku will allow ExxonMobil to process the natural gas extracted by Gazprom and use it in its own operations.

ExxonMobil Enters into a Pact with Gazprom, the World's Largest