Question
High risks and rising R & D costs have not forced many TNCs to form technology related strategic alliances.
Answer :
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High risks and rising R&D costs (especially in the area of new technologies) and the rapid obsolescence of new products have forced many TNCs to form technology-related strategic alliances to share development costs, acquire new technologies and make better use of scarce qualified personnel. The substantial number of strategic alliances in existence now is a relatively new phenomenon. There are indications, however, of an emerging trend towards a very high proportion of agreements involving the development of and access to technologies.
The alliances
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