A drawback involved in using cross-border strategic alliances to enter new foreign markets is that
A. some of the firm's proprietary know-how may be appropriated by the foreign partner.
B. the shareholder value of the foreign partner will decline drastically.
C. all potential business risks in the new market will have to be faced alone by the foreign firm.
D. the foreign firm will need to make larger investments when compared to entering the new market on its own.
Answer: A
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