THE DYNAMICS OF GLOBAL STRATEGY AND STRATEGIC ALLIANCES IN INTERNATIONAL TRADE AND INVESTMENT
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Companies in their quest to exploit the economies of scope associated with global trade and investment have made inroads into their nondomestic markets by
implementing global strategies. This study, examines the key forces that influence the global strategic choices firms make, and how cooperation among and
between firms affect their strategic choices. The study found that the choice of what global strategy firms implement is largely determined by the degree of
simultaneous pressures for cost reduction and the demands for local responsiveness. The study also found that firms utilise cooperation as a veritable mechanism
to neutralise their resource and capability weaknesses. This study recommends amongst others, that the selected partners for an alliance should have the
willingness and ability to help the company achieve its strategic goals, such as gaining access to new markets, sharing the costs and risks of new product
development, or gaining access to critical core competencies. In addition, a good partner must share the firm’s vision for the purpose of the alliance and be
unlikely to expropriate the company’s technological competencies or know-how.
Keywords
H Social Sciences (General), HG Finance