A strategic alliance is a type of _____ for a firm to expand into the foreign market.

A strategic alliance is a type of _____ for a firm to expand into the foreign market.

• A. Export strategy
• B. Entry mode
• C. Global entry strategy
• D. Domestic partnership

Answer: (C)

Expanding into foreign markets often hinges on how a firm enters those markets, not just what it sells. A strategic alliance is a cooperative arrangement with another company that lets you access local markets, resources, technology, or distribution networks without taking on full ownership. This makes it a practical way to implement a global entry strategy: you partner to enter and operate in a foreign environment more quickly and with less risk than going it alone. Why this fits best: exporting from the home country is a seller-buyer relationship across borders and doesn’t involve forming a partnership to gain local reach. A domestic partnership stays within the home country, offering no foreign-market exposure. The phrase entry mode is accurate in describing the mechanism, but the term global entry strategy better captures the broad plan of how a firm approaches international expansion, with strategic alliances as a key method within that plan.

Expanding into foreign markets often hinges on how a firm enters those markets, not just what it sells. A strategic alliance is a cooperative arrangement with another company that lets you access local markets, resources, technology, or distribution networks without taking on full ownership. This makes it a practical way to implement a global entry strategy: you partner to enter and operate in a foreign environment more quickly and with less risk than going it alone.

Why this fits best: exporting from the home country is a seller-buyer relationship across borders and doesn’t involve forming a partnership to gain local reach. A domestic partnership stays within the home country, offering no foreign-market exposure. The phrase entry mode is accurate in describing the mechanism, but the term global entry strategy better captures the broad plan of how a firm approaches international expansion, with strategic alliances as a key method within that plan.