In international business environment there are many appeals and advantages of strategic alliances. These are listed below:

• Better access to feasible countries from host country to import and market products/services.

• Capture economies of scale.

• Fill missing information in technical expertise of local markets.

• Share distribution facilities and dealer network.

• Take advantage of partner’s local market knowledge and networks.

• Combine competitive energies toward defeating mutual rivals.

  Under some circumstances, there would be pitfalls of strategic alliances such as:

• To overcome language and cultural barriers.

• To deal with diverse or conflicting operating practices of partners.

• To consume time for managers in terms of communication, trust building and coordination

  costs.

• To create mistrust when collaborating in competitively sensitive areas.

• To clash in egos and company cultures.

• To deal with conflicting objectives, strategies, corporate values, ethical standards.

• To become too dependent on another firm for essential expertise in the long term.