Foreign companies having a minority ownership position in international business alliances rarely have control over the alliance even though they may possess much of the expertise required to manage the alliance.
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Companies wishing to do business abroad often enter into an alliance with an indigenous company to facilitate entry into a foreign market. The foreign company is usually the majority owner in such relationships.
Purchaser-supplier relationships are also called logistics alliances.
A cross-marketing relationship is one in which one party to the agreement agrees to sell to its customers the products or services of another firm.
Major motivations for business alliances include risk sharing as well as gaining access to new markets and skills.