Question

Which of the following was identified in the textbook as a disadvantage of participating in strategic alliances and joint ventures?

a. Gain access to a foreign market Neutralizing or blocking competitors
b. Economies of scale Risk and cost sharing Partial loss of decision autonomy

Answer 1

Answer: The correct answer is "b. Economies of scale Risk and cost sharing Partial loss of decision autonomy".

Explanation: "Economies of scale Risk and cost sharing Partial loss of decision autonomy" was identified as a disadvantage of participating in strategic alliances and joint ventures, because in alliances of this nature, risk and costs are shared, which causes a higher level of these and autonomy in decision-making is affected because decisions must be taken together, not by the will of only one of the parties.