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Author Question: Why would a firm establish a non-joint venture strategic alliance instead of a joint venture? What ... (Read 147 times)

Pineappleeh

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on: Jul 7, 2018
Why would a firm establish a non-joint venture strategic alliance instead of a joint venture? What are the characteristics of a non-joint venture strategic alliance?
 
  What will be an ideal response?

Question 2

JBX Automobiles, a global firm, builds factories to serve more than one country and lower the MNE's production costs. JBX Automobiles most likely benefits from ________.
 
  A) multinational flexibility
  B) economies of scale
  C) location efficiencies
  D) economies of scope
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tranoy

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Reply #1 on: Jul 7, 2018
Answer to Question 1

A formal management organization allows a joint venture to be broader in purpose, scope
(or range of operations), and duration than other types of strategic alliances. A non-joint venture
strategic alliance may be formed merely to allow the partners to overcome a particular hurdle
that each faces in the short run. A joint venture will be more helpful if the two firms plan a more
extensive and long-term relationshi

Answer to Question 2

B


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