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Challenges of Cross-Border Alliances

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International borders are becoming less visible as the global economy expands.

Respond to the following questions:
How can a cross-border alliance be beneficial to an organization that wants to expand globally?
What hindrances to international cooperative strategies can you foresee?
Can cross-border alliances be part of both business-level cooperative strategy and corporate-level cooperative strategies? Why or why not?

Please site at least 1 reference

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How can a cross-border alliance be beneficial to an organization that wants to expand globally?
Cross-border alliances is an international strategy that companies use to obtain strategic benefits and competitive advantage such as gaining new markets, new skills, new technology, new products or to simply share costs and resources. Among the reasons why top 150 companies form partnerships specifically cross-border alliances are to enter a new market as fast as they can, others developed and commercialized new products and others were there to share costs or gain new skills. Although there are many challenges to cross-border alliances, studies have proven that they are very good stepping stones to international strategy. Cross-border alliances are effective in venturing related commerce and exploring new geographic markets. To make them work, strong companies should partner with others of the same strength to complement each other's missing skills that are essential for growth. When these alliances have autonomy for flexibility and venture, they are able to evolve beyond the initial expectations which mean that they can endure and last longer than most alliances. They can be more successful when both partners have an equal share of financial ownership because it means equal management control. (hbr.org)
Other ways to discuss the above benefits of cross-border alliances are the following (usfsp.edu):
• Firms use their resources and capabilities in creating new markets outside their home market.
• Companies operating only on domestic market are usually outperformed by the multinational corporations.
• Domestic growth ...

Solution Summary

* Cross-border alliances, described, and its benefits, and how to make them successful
* Hindrances/challenges to international cooperative strategies and how to overcome them
* Competitive risks in cooperative strategies
* Business-level cooperative strategy described and how a cross-border alliance can be a business-level alliance; four (4) types of business-level cooperative strategies
* Corporate-level cooperative strategy described and how it differs to business-level cooperative strategy
* Three (3) common forms of corporate-level cooperative strategy
* 855 words
* four (4) non-APA references

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