Author Question: Why should a company seek a global alliance over other forms of market entry? What will be an ... (Read 26 times)

naturalchemist · **on:** Jul 7, 2018

Why should a company seek a global alliance over other forms of market entry?

What will be an ideal response?

Question 2

Which of the following financing methods entails the greatest risk for importers?

A) documentary collection
B) advance payment
C) letter of credit
D) open account

Pswine · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

Alliances have advantages over other entry forms, such as exporting. For example, an alliance will give faster market access than exporting and will avoid entry barriers such as tariffs. In addition, while an exporting strategy requires the firm to find customers, the alliance partner may already have a customer base. Further, an alliance is a means of spreading risk over a larger, more diversified enterprise than a single domestic firm. In large technological firms, an alliance is often a way to share costs and share technology.

Answer to Question 2

B