When Entering a Foreign Market, It Is Advisable for a New

Multiple Choice

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

A) the local partner can better protect its proprietary know-how.
B) building downstream complementary assets can be expensive and time-consuming.
C) the strategic alliance will reduce the differentiation of its product and service offerings.
D) the value gap created by the firm can be easily lowered in an alliance.