Final answer:
Firms form cross-border alliances for strategic reasons, including resource sharing and navigating foreign policies, but not typically due to liabilities of international expansion, which they aim to mitigate. Option D is correct answer.
Step-by-step explanation:
The question asks to identify which of the following is NOT a reason that firms use cross-border alliances: a) Control over sharing resources, b) Limited domestic growth opportunities, c) Foreign government economic policies, or d) Liabilities of moving into a foreign country.
Firms establish cross-border alliances for various strategic reasons, including control over sharing resources, exploiting limited domestic growth opportunities, and navigating or leveraging foreign government economic policies. However, the liabilities of moving into a foreign country are typically concerns that the firm seeks to mitigate through alliances, rather than reasons for forming them.
Such liabilities may include legal risks, cultural differences, and environmental regulations, which can pose challenges for companies expanding internationally.