Share
Explore BrainMass

advantages in forming strategic alliances

1. Briefly discuss why a domestic company desirous of entering foreign markets might see attractive advantages in forming strategic alliances with foreign companies. What are the risks and disadvantages of such alliances?

2. Explain how exchange rate fluctuations pose a risk to manufacturing companies who rely upon an export strategy to compete in foreign markets.

3. Identify and briefly discuss the key reasons why a company may consider expanding outside its domestic market.

Solution Preview

A domestic company desirous of entering foreign markets find it advantageous to form strategic alliances with the foreign companies because such companies have significant expertise and knowledge about the local market which can be extremely useful to exploit market opportunities in that market. However, the main disadvantage is that if the ...

Solution Summary

Explains the reasons for domestic company desirous of entering foreign markets to form strategic alliance with foreign companies.

$2.19