Some researchers have argued that alliances can be used to help firms evaluate the economic potential of entering into a new industry or market. What, if anything, about an alliance makes this a better way to evaluate entry opportunities than alternatives?
Answer to relevant QuestionsWill a firm with below average accounting performance over a long period of time necessarily go out of business? If adverse selection, moral hazard, and holdup are such significant problems for firms pursuing alliance strategies, why do firms even bother with alliances? Some researchers have argued that the existence of free cash flow can lead managers in a firm to make inappropriate acquisition decisions. To avoid these problems, these authors have argued that firms should increase their ...What, if anything, is different about international strategies and diversification strategies?Your firm has decided to begin selling its mining machinery products in Ghana. Unfortunately, there is not a highly developed trading market for currency in Ghana. However, Ghana does have significant exports of cocoa. ...
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