Obtaining additional investment funds from others is the primary motivation for creating various types of alliances.
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Strategic alliances generally create separate legal entities in order to achieve their business objectives.
A joint venture is rarely an independent legal entity such as a corporation or partnership.
Business alliances may represent attractive alternatives to mergers and acquisitions.
The disadvantages of exporting include high transportation costs, exchange rate fluctuations, and possible tariffs placed on imports into the local country.