An American car maker and a Japanese car maker have entered into a strategic alliance. Both have valuable technology that they need in order to perform their aspect of the manufacturing process for particular lines of vehicles. Since both need each other's technology, it is unlikely the other will use the proprietary information about the other to take advantage for fear of their own technology becoming disclosed. To guarantee that each partner maintains the agreement, the two companies are participating in:_______

In this scenario both companies holding the other company hostage, because they will not use the proprietary information about the other to take advantage for fear of their own technology becoming disclosed.

The American and Japanese company need each other's technology for their production process, so they will not want to jeopardise this relationship.

Entering into a strategic alliance to guarantee that each partner maintains the agreement, the two companies is hostage taking.