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Question
Which of the following is a drawback of entering into strategic alliances with independent suppliers?
A. The firm loses out on many of the benefits arising from investments in specialized assets.
B. The strategic relationship between a firm and each of its essential suppliers is not market-mediated.
C. The firm risks giving away key technological know-how to a potential competitor.
D. It cannot be terminated even if the supplier fails to perform.
E. They are short-term relationships in which firms have stronger bargaining power than their suppliers.
Answer
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