Consider the joint venture between General Motors and Toyota. GM has been interested in learning how to profitably manufacture high-quality small cars from its alliance with Toyota. Toyota has been interested in gaining access to GM’s U.S. distribution network and in reducing the political liability associated with local content laws. What implications, if any, does your answer have for a “learning race” in this alliance?
Answer to relevant QuestionsBoth external and internal analyses are important in the strategic management process. Is the order in which these analyses are done important? Some researchers have argued that strategic alliances are one way in which firms can help facilitate the development of a tacit collusion strategy. In your view, what are the critical differences between tacit collusion ...If adverse selection, moral hazard, and holdup are such significant problems for firms pursuing alliance strategies, why don’t they instead adopt a “go it alone” strategy to replace strategic alliances?The hubris hypothesis suggests that managers continue to engage in acquisitions, even though on average they do not generate economic profits, because of the unrealistic belief on the part of these managers that they can ...On average, why is the threat of adverse selection and moral hazard in strategic alliances greater for firms pursuing an international strategy or a domestic strategy?
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