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

Respuesta :

Answer: E. Strategic alliance gives competitors a low-cost route to new technology and markets

Explanation:

A strategic alliance is simply when there is an agreement that takes place between two or more parties so that a certain objective can be achieved even though the companies still maintain their independence.

The disadvantage of a strategic alliance is that strategic alliance gives competitors a low-cost route to new technology and markets.

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