Future Business Leaders of America (FBLA) Business Management Practice Test

What is the primary goal of a strategic alliance?

1. Expand markets and operations using cheaper labor

2. Gain access to new markets through partnerships

3. Share profits made from foreign sales

4. All of the above

The correct answer is: Gain access to new markets through partnerships

The primary goal of a strategic alliance is to gain access to new markets through partnerships. This type of relationship allows companies to collaborate in a way that leverages their respective strengths, resources, and expertise, enabling them to enter new geographic regions or market segments more effectively than they could independently. By forming an alliance, organizations can share risks associated with market entry, reduce costs, and benefit from local market knowledge, which can significantly enhance their competitive position. This collaboration often involves sharing resources, technology, and information, which contributes to achieving common objectives in a mutually beneficial manner. While the other options mention factors that can be part of a strategic alliance, they do not encapsulate its primary goal. Expanding operations using cheaper labor or sharing profits are secondary benefits that may arise from a strategic partnership, but they do not represent the core purpose of such an alliance. Thus, the focus on accessing new markets as a primary goal distinguishes option B as the most accurate choice.