Strategic alliances that have firms exchanging stock and forming joint ventures are more important in
A) agricultural firms where government interference is critical for firm survival.
B) old fashioned basic industry where pure economies of scale are still dominant.
C) high tech industries where research and development costs are high and innovation is critical to success
D) none of the above.

Question

Quizplus · Accepted Answer

Strategic alliances that involve exchange of stock and formation of joint ventures are especially important in high tech industries where research and development costs are high and innovation is critical to success. In such industries, firms often lack the resources to independently develop new technologies and products, and strategic alliances provide opportunities to pool resources and expertise, reduce costs, and share risks. Agricultural firms (option A) may benefit more from government subsidies and regulation, whereas old-fashioned basic industries (option B) may benefit from pure economies of scale, making strategic alliances less critical for their survival.

Strategic Alliances That Have Firms Exchanging Stock and Forming Joint