2. Discuss the benefits for Bolivia of forming a strategic alliance with a priva

Question

2. Discuss the benefits for Bolivia of forming a strategic alliance with a private company to extract lithium. What are the drawbacks of this strategy? What should Bolivia look for in a partner? 3. The Bolivia’s President has indicated that he is in favor of finding a partner to help the country extract its lithium. What are the benefits to a company of forming a strategic alliance with Bolivia? Are there any disadvantages to this type of strategy? 4. If the Bolivian government finds a foreign partner, should this partner be concerned with the risks of expropriation?

Explanation / Answer

The benefits for Bolivia of forming a strategic alliance with a private company to extract lithium are as follows:

The drawbacks of this strategy is that it may pollute the environment from the waste effluents disposed in the environment. It also creates health hazards to the labours working in the lithium industries.

The Bolivia’s President has indicated that he is in favor of finding a partner to help the country extract its lithium. The benefits to a company of forming a strategic alliance with Bolivia is that the highest producers of lithium would be able to find its exportes. It would tend to generate high rates of revenues. The disadvantage is not much in the business as it helps to generate a good market value being the single highest producer of lithium.

If the Bolivian government finds a foreign partner, this partnership should be concerned with the risks of expropriation. It would help to increase the business across the world. It would also increase the rate of foreign exchange which is going to increase the national economy.

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.