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´╗┐Chapter Discussion Questions

1. Discuss the reasons that companies embark on cross-border strategic alliances. What other motivations may prompt such alliances? The text notes five motives for cross border alliances: 1) to avoid import barriers, licensing requirements and other protectionist legislation; 2) to share the costs and risks of the research and development of new products and processes; 3) to gain access to specific markets; 4) to reduce political risk while making inroads into a new market; and, 5) to gain rapid entry into a new or consolidating industry, and to take advantage of synergies. Each firm is faced with its own environmental conditions and this may prompt a strategic alliance for other reasons. The GM-Toyota strategic alliance resulting in NUMMI was motivated…