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Question
Which of the following is a disadvantage of a strategic alliance?A.Entering into a strategic alliance makes it difficult for a firm to enter into a foreign market.
B.As a result of strategic alliance, fixed costs of developing new products tend to increase.
C.Strategic alliance gives competitors a low-cost route to new technology and markets.
D.Firms that enter into a strategic alliance with a foreign firm tend to face higher trade barriers.
E.Strategic alliance always leads to a loss to either of the firms involved.
Answer
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