Question

Entering into strategic alliances, joint ventures, and other cooperative agreements with foreign firms are a favorite and potentially fruitful means for a company to rapidly transfer its resource strengths and capabilities to more and more countries worldwide, reduce its sales and marketing costs, save on administrative expenses, learn from the skills and technological know-how of its alliance partners, and boost its profit margins on sales made in foreign countries. pursue a "think local, act global competitive approach, build multiple profit sanctuaries, quickly establish a widely-known and respected global brand name, and win the business of prestigious foreign customers. achieve strong product differentiation, cost-efficient supply chain management, and rapid product innovation in striving to compete internationally. pursue joint multicountry strategies, joint global strategies, joint franchising strategies, or joint export strategies. facilitate entry into additional country markets, benefit from a foreign partner's familiarity with local market conditions and governmental regulations and/or gain access to a foreign partner's distribution facilities and dealer networks.

Answer 1

Answer 1 : Rapidly transfer its resource strengths and capabilities to more and more countries worldwide, reduce its sales and marketing costs, save on administrative expenses, learn from the skills and technological know how of its alliance partners, and boost its profit margins on sales made in foreign countries.

Note : It helps the company, to achieve the competitive edge over its competitors by using the skills, knowledge and technology of both the partners involved in the strategic alliance, joint venture or other cooperative agreement.

Answer 2 : Are often so big that a company's operating costs and profitability are significantly impacted by where its production, distribution and customer service activities are located.

Note : Due to the differences in wage rates, worker productivity, energy costs, environmental regulations, tax rates, inflation rates,tariffs/import duties etc all the activities related to business such as operations, manufacturing, sales etc are impacted significantly.