Benefits of the Decision to Form an Alliance:

1. Risk Reduction:
   The decision to form an alliance with Emi Explorations will enable Gana Oil to share and reduce the risks associated with the venture, which is considered very risky.
   (2 marks)
2. Cost Reduction:
   The alliance will allow Gana Oil to share the costs involved in engaging in the venture, which is considered a capital-intensive project.
   (2 marks)
3. Political Acceptability:
   An alliance is a form of business arrangement accepted by the government of Ghana. The government prefers a business arrangement that offers a win-win outcome to the country and the foreign partner rather than allowing the foreign firm to take all the benefits associated with such a venture.
   (2 marks)
4. Access to Expertise:
   The alliance will enable Gana Oil to have access to expertise in the exploration and drilling business that might be possessed by Emi Explorations. Emi Explorations is recognized as a leader in oil explorations with facilities and operations in many countries globally.
   (2 marks)
5. Access to Financial Resources:
   The alliance of Gana Oil with Emi Explorations will enable Gana Oil to access additional capital for the project. A partnering firm is expected to make financial contributions to facilitate the smooth operations of the venture.
   (2 marks)