CA Inter P6 · Chapter 13 · Question 11 of 11
Two companies from different countries agree to jointly develop and market a new electric vehicle platform, sharing technology and costs while remaining independent legal entities. The main advantage of this strategic alliance is that it allows each partner to:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Access the other's complementary resources and markets while sharing the cost and risk of the venture
Explanation
A strategic alliance is a cooperative arrangement in which partners pool resources for a common purpose but stay independent. Its benefits include access to new markets and technology, sharing of cost and risk, and learning from the partner. It requires coordination and trust, and it does not give ownership control, which would require a merger or acquisition.
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