LOOKING TO THE FUTURE

LOOKING TO THE FUTURE As more businesses are becoming international, competition is becoming more global and more interrelated. Thus, what happens competitively in one country is more likely to affect competitive viability in other countries as well. To expand more rapidly to meet this challenge, firms are increasingly turning to alliances with other firms. At one extreme there are international mergers and acquisitions. The alliances discussed in this chapter might be considered half-way houses toward full merger and acquisition. It is safe to say that they will continue to accelerate because firms lack the internal resources to do everything alone as they compete internationally. These alliances will bring both opportunities and potential problems as companies move simultaneously to new-country environments and to contractual arrangements with new companies. Furthermore, the additional operating alternatives may strain the decision-making and control processes.

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