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When entering a foreign market, it is advisable for a new venture that has a core competency only in R&D to form a strategic alliance with a local partner because

Multiple Choice

$$ the value gap created by the firm can be easily lowered in an alliance.

$$ the local partner can better protect its proprietary know$-$how.

building downstream complementary assets can be expensive and time$-$consuming.

$$ the strategic alliance will reduce the differentiation of its product and service offerings.

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