Question

In: Economics

What are important considerations that will result in a successful global strategic alliance between two countries?

What are important considerations that will result in a successful global strategic alliance between two countries?

Solutions

Expert Solution

There are any considerations that can help two countries to come together and form strategic alliances. The first consideration the complementing nature of the resources owned by the two countries. For example, a country high in capital resources would like to make strategic alliances with the country having huge number of workforce. Here, one country wants to utilize the other country’s resources and both the countries grow. In real World, the many strategic tie-ups between India and the Japan can be observed. The second consideration is the one country representing as a market for another country and vice versa. It makes these countries to come together and help the GDP growth of each other. For example, The USA becomes an exporter of heath care products, technologically advanced products and arms and ammunitions to countries like India, whereas the India finds an opportunity to provide information technology services as well as a hub of global outsourcing. It makes these nations to be natural allies of each other. In a recent past, the USA and Mexico have also been in the strategic alliance.

The third consideration is the need of support of each other to be successful at third front. It makes the countries to help each other when they need it in their pursuit. It becomes a reason for them to join hands and form a strategic alliance. It can be seen in the support of China Pakistan in UNO, NSG meeting and other world organizations, because China is working upon CPEC (China Pakistan Economic Corridor) in Pakistan. The fourth consideration is the cultural similarities between the two nations that make them natural allies to each other.


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