Question

In general, cross-border strategic alliances are _____ and _____ than domestic strategic alliances.

a expensive; less complex
b expensive; less risky
c complex; less risky
d complex; riskier

Answer 1

Cross-border strategic alliances are generally more complex and riskier than domestic ones. The complexity is due to various international factors and unpredictable environments, while the risk increases with the volatility of international markets and politics. A treaty is typically longer-lasting than a sole executive agreement.

Step-by-step explanation:

In general, cross-border strategic alliances are considered to be complex and riskier than domestic strategic alliances. This complexity arises from the need to navigate different regulatory environments, cultural nuances, and currency fluctuations. The risk is elevated due to the unpredictable nature of the international market and political landscapes which can impact the alliance negatively. Furthermore, foreign policy issues contribute to this complexity because they are inherently more complicated than domestic policies, often due to the unpredictability of the international environment. As for a sole executive agreement being in effect longer than a treaty, this statement is generally false as treaties are typically ratified by the legislature and intended to be lasting commitments while executive agreements may be less formal and can be altered or terminated by subsequent administrations without the need for legislative approval.