Question

Exxon Mobil enters into a pact with Gazprom, the world's largest natural gas extractor, to set up a processing unit in Baku, Azerbaijan. Which of the following is most likely the reason for Exxon Mobil to opt for this strategic alliance?

to scale back its core competencies

to better compete with Gazprom

to restrict its factors of production

to gain access to low-cost inputs of production

to gain access to new customers

Answer 1

To gain access to low-cost inputs of production is most likely the reason for Exxon Mobil to opt for this strategic alliance. Whereas the remaining ones are not relevant in this context.