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International Business: An Asia Pacific Perspective, Second Edition by Andrew Delios

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7. Strategic Alliances and Joint Ventures

A strategic alliance is a collaborative activity carried out by two or more firms, in which all firms involved in the alliance contribute inputs to the alliance. The firms have determined a set of goals for the strategic alliance, which might include the technologies to be developed or the markets to be entered. The firms, sometimes called “strategic alliance partners” or just “partners,” will typically have a defined duration if the strategic alliance is a non-equity one or an indefinite duration if the strategic alliance is an equity joint venture.

Strategic alliances can take many forms (see Figure 7-1). A joint venture is at the end point on the continuum of cooperative alliances. Joint ventures have ...

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