Which of the Following Is a Disadvantage of a Strategic

Multiple Choice

Which of the following is a disadvantage of a strategic alliance?

A) Entering into a strategic alliance makes it difficult for a firm to enter into a foreign market.
B) As a result of strategic alliance,fixed costs of developing new products tend to increase.
C) Strategic alliance gives competitors a low-cost route to new technology and markets.
D) Firms that enter into a strategic alliance with a foreign firm tend to face higher trade barriers.
E) Strategic alliance always leads to a loss to either of the firms involved.