Which of the following is not one of the problems and risks of strategic alliances between domestic and foreign firms?
A) Overcoming language and cultural barriers and the sometimes extensive managerial time required for trust-building,communication,and coordination
B) The trouble allies can have reaching mutually agreeable ways to deal with key issues
C) Becoming overly dependent on another company for essential expertise and competitive capabilities
D) Making it harder to pursue a multidomestic strategy as compared to a global strategy
E) Suspicions about whether allies are being forthright in exchanging information and expertise

Question

Quizplus · Accepted Answer

The problem and risks mentioned in options A, B, C, and E are all valid concerns when it comes to strategic alliances between domestic and foreign firms. However, the issue mentioned in option D is not necessarily a problem or risk associated with such alliances. Pursuing a multidomestic strategy (tailoring products and marketing to specific countries or regions) may be more challenging with a strategic alliance, but it is not a problem or risk in and of itself.

Which of the Following Is Not One of the Problems