Chapter7 Discussion Questions 1 
Chapter Discussion Questions
1. Discuss the reasons that companies embark on cross-border strategic alliances. What other motivations may prompt such alliances?
The text notes five motives for cross border alliances: 1) to avoid import barriers, licensing requirements and other protectionist legislation; 2) to share the costs and risks of the research and development of new products and processes; 3) to gain access to specific markets; 4) to reduce political risk while making inroads into a new market; and, 5) to gain rapid entry into a new or consolidating industry, and to take advantage of synergies. Each firm is faced with its own environmental conditions and this may prompt a strategic alliance for other reasons. The GM-Toyota strategic alliance resulting in NUMMI was motivated in part by the desire of each firm to learn. GM wanted to learn about the Toyota production process, and Toyota wanted to learn about American labor relations.
The content notes five thought processes in cross fringe collusions: 1) to evade import hindrances, authorizing necessities and other protectionist enactment; 2) to impart the expenses and dangers of the innovative work of new items and courses of action; 3) to get access to particular markets; 4) to diminish political danger while making advances into another business; and, 5) to addition quick section into another or uniting industry, and to exploit collaborations. Each one firm is confronted with its own ecological conditions and this may incite a key organization together for different reasons. The GM-Toyota key cooperation bringing about NUMMI was roused to some extent by the craving of each one firm to learn. GM needed to look into the Toyota creation methodology, and Toyota needed to research American work relations.
2. Why are there an increasing number of mergers with companies in different industries? Give some examples. What industry do you think will be the next for global consolidation?
There are a variety of reasons.
1. Discuss the reasons that companies embark on cross-border strategic alliances. What other motivations may prompt such alliances?
The text notes five motives for cross border alliances: 1) to avoid import barriers, licensing requirements and other protectionist legislation; 2) to share the costs and risks of the research and development of new products and processes; 3) to gain access to specific markets; 4) to reduce political risk while making inroads into a new market; and, 5) to gain rapid entry into a new or consolidating industry, and to take advantage of synergies. Each firm is faced with its own environmental conditions and this may prompt a strategic alliance for other reasons. The GM-Toyota strategic alliance resulting in NUMMI was motivated in part by the desire of each firm to learn. GM wanted to learn about the Toyota production process, and Toyota wanted to learn about American labor relations.
The content notes five thought processes in cross fringe collusions: 1) to evade import hindrances, authorizing necessities and other protectionist enactment; 2) to impart the expenses and dangers of the innovative work of new items and courses of action; 3) to get access to particular markets; 4) to diminish political danger while making advances into another business; and, 5) to addition quick section into another or uniting industry, and to exploit collaborations. Each one firm is confronted with its own ecological conditions and this may incite a key organization together for different reasons. The GM-Toyota key cooperation bringing about NUMMI was roused to some extent by the craving of each one firm to learn. GM needed to look into the Toyota creation methodology, and Toyota needed to research American work relations.
2. Why are there an increasing number of mergers with companies in different industries? Give some examples. What industry do you think will be the next for global consolidation?
There are a variety of reasons.