is the risk that the government of this country might try to seize this local business so that the domestic company can have all the market on its own. Risk of losing control over proprietary information, especially regarding complex transactions requiring extensive coordination and intensive information sharing. Coordination difficulties due to informal cooperation settings and highly costly dispute resolution. Success factors The success of any alliance very much depends on how effectively the capabilities of the involved enterprises are matched and whether the full commitment of each partner to the alliance is achieved. There is no partnership without trade-offs, but the benefits of it must preponderate the disadvantages, because alliances are made to fill gaps in each others´capabilities and capacities. Poor alignment of objectives, performance metrics, and a clash of corporate cultures can weaken and constrain the effectiveness of the alliance effectiveness. Some key factors that have to be considered to be able to manage a successful alliance include: Understanding: The cooperating companies need a clear understanding of the potential partner's resources and interests and this understanding should be the basis for setting the alliance's goals. No time pressure: During negotiations time pressure must not influence the outcome of the process. Managers need time to establish a working relationship with each other, develop a time plan, set milestones, and design communication channels. Limited alliances: Some incompatibilities between enterprises might be unavoidable, so the number of alliances should be limited to the number necessary to enable the companies to achieve their goals. Good connection: Negotiations need experienced managers. The managers from large firms need to be well-connected to integrate different departments and business areas over internal borders, and they need legitimations and support from senior management. Creation of trust and goodwill: The best basis for a profit-yielding cooperation between enterprises is the creation of trust and goodwill, because it increases tolerance, intensity, and openness of communication, and makes the common work easier. Further, it leads to equal and satisfied partners. Intense relationship: Intensifying the partnership leads to the fact that partners get to know each other better, each other's interests and operating styles and increases trust. Further important factors Ability to meet performance expectations Clear goals Partner compatibility Commitment to long term relationship Alignment Alliance management skills Measuring the effectiveness of the Alliance. Balanced Scorecard is being increasingly relied upon to keep abreast of all of an alliance's tangible and intangible