Exxon Mobil has entered 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 Exxon Mobil to opt for this strategic alliance?
A)To better compete with Gazprom
B)To scale back its core competencies
C)To gain access to low-cost inputs of production
D)To gain access to new customers in new markets
E)To restrict its factors of production

Question

Quizplus · Accepted Answer

Exxon Mobil may have entered into this pact with Gazprom to gain access to low-cost inputs of production, such as natural gas, which is the primary raw material for processing units. This would increase the efficiency and reduce the cost of production, making their products more cost-effective and competitive in the market. The other options such as scaling back competencies or restricting factors of production, do not seem to be logical reasons for forming this alliance, while gaining access to new customers in new markets is also not a likely possibility as the partnership is focused on setting up a processing unit in a specific location, rather than expanding to new markets or customers.

Exxon Mobil Has Entered into a Pact with Gazprom,the World's