Strategic alliances,joint ventures,and cooperative agreements between domestic and foreign firms are a potentially fruitful means for the partners to

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Strategic alliances,joint ventures,and other cooperative agreements with foreign companies are a favorite and potentially fruitful means for entering a foreign market or strengthening a firm's competitiveness in world markets in order to: (1) strengthen a company's ability to gain a foothold in a desirable market; (2) capture economies of scale in production and/or marketing; (3) fill gaps in technical expertise and/or knowledge of local markets (buying habits and product preferences of consumers,local customs,and so on); (4) share distribution facilities and dealer networks to mutually strengthen access to buyers; (5) refocus energies away from competition between allies and instead toward teaming up to close the gap on leading companies; and (6) allow each partner to preserve its independence and avoid using perhaps scarce financial resources to fund acquisitions.

Strategic Alliances,joint Ventures,and Cooperative Agreements Between Domestic and Foreign Firms