Development of local distribution network is a difficult and expensive process, as usually takes a lot of knowledge about local conditions. Local alliance partners may have mastered this knowledge. They may have a local distribution relationship in one place by working with local partners, companies can essentially reduce the cost of entry into this market.

Of course, some governments require new members to become a local alliance partners. Governments see such relationships not only as a way to facilitate entry of foreign firms into their markets, but also as a means for domestic firms to learn from foreign companies.

All potential threats within the alliance, such as from a moral hazard, of robbery in the international context. Although these cases often become an important information asymmetry between companies in a partnership. This would appear asymmetrical when the alliance partners come from different countries, operating in different cultures and speak different languages.