B. \text{Quantity of direct labor used}&\text{850 hrs. They enable firms to achieve goals faster, but at higher costs. firms. A. personal trust D. Profit stealing. A. The commitment associated with a small-scale entry makes it possible for the small-scale The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. B.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. True False, An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. B.Joint ventures give a firm a tight control over subsidiaries that it might need to realize experience curve or location economies. A. To increase the potential for a successful acquisition, a firm should: An air conditioner manufacturer, Hues Corp., decides to form a strategic alliance with a firm to source components that make up the highest percentage of total costs. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of the host country's competitive conditions, culture, language, political systems, and business systems. Which category of issues does the second clause address? Which of the following statements is true about firms in a joint venture? A. Hold-up Which of the following is the primary objective of this strategic alliance? Which of the following is true of establishing greenfield venture in a foreign country? Which of the following statements is true of strategic alliances? A. scale economies 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ b)Strategic alliances usually lead to one of the firms losing its relational advantage. A. switching costs C. turnkey operation A. A nonequity alliance A. wholly owned subsidiary B. franchising arrangement C. turnkey operation D. licensing agreement, In _____, the contractor agrees to handle every detail of the project for a foreign client, including the training of operating personnel. D. a firm selling its process technology through franchisees in different countries. Voting rights clauses A. chartering B. exporting C. a turnkey strategy D. franchising. Strategic alliances usually lead to one of the firms losing their relational advantage. Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. SeaShade produces beach umbrellas. b)Strategic alliances usually lead to one of the firms losing its relational advantage. _____. A firm is relieved of many of the costs and risks of opening a foreign market on its own. D. developing nations where speculative financial bubbles have led to excess borrowing. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of True False, The main advantage of greenfield investment is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants. A. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? B. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. WebWhich of the following statements is true of strategic alliances? C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. C. faces less trade barriers. Gray helps design products that change how Victor is perceived by young customers. D. Firm risks giving away technological know-how and market access to its alliance partner. B. licensing agreements What is the interest earned for 1 year? A strategic alliance is an agreement between two businesses to work together on a project that will benefit both parties while maintaining their individual freedom. A. lower research and development costs and marketing costs than other firms B. ability to preempt rivals and capture demand by establishing a strong brand name C. ability to capitalize on the work done by other firms D. creation of innovative products at lower costs than other firms, B. ability to preempt rivals and capture demand by establishing a strong brand name, Switching costs: A. drive early entrants out of the market. economies. C. Strategic alliances allow firms to bring together complementary skills and assets that neither Licensing; franchising . 1. Which of the following statements is likely to be true in this case? Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. D. A horizontal alliance, Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. D. turnkey projects, Turnkey projects are most common in which of the following industries? WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? An alliance is likely to rely most on relationships between individuals when it is based on _____. the business opportunities for companies in the developing country. A. If a firm's core competency is based on control over proprietary technological know-how, _____ and _____ arrangements should be avoided if possible to minimize the risk of losing control over that technology. Strategic alliances exclude functions that are bought through bidding. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. A. Which of the following is true of exporting? }\\ True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. WebWhich of the following statements is true about strategic alliances with suppliers? C. acquisitions Redwood Inc., has an arm's-length relationship with Blue Ink Corp. B. Misrepresentation B. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. WebB. A. drive early entrants out of the market. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. C. When the development costs and/or risks of opening a foreign market are high, a firm might company could easily develop on its own. In the second clause, they specify how intellectual property will be shared and protected. 4. It allows individual companies to achieve more D. A joint venture. revenue and profit prospects. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Which of the following statements about franchising is true? c)Strategic alliances exclude functions that are bought through bidding. Hoschild Bicycle Company manufactures bicycles. A. an acquisition C. It guarantees consistent product quality and achieves experience curve and location economies. Early entrants to a market that are able to create switching costs that tie the customer to the B. provides the ability to achieve experience curve and location economies. Through this measure, Plateus seeks to primarily achieve _____. B. chartering WebWhich of the following statements is true about strategic alliances? D. In many cases, firms make acquisitions to preempt their competitors. A. B. product are capitalizing on: WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. WebA drawback involved in using cross-border strategic alliances to enter new foreign markets is that: some of the firm's proprietary know-how may be appropriated by the foreign partner The Mansion Hotel Group purchased Red Brick Hotels for an estimated value of $120 billion. B. Which of the following is an advantage of franchising? C. A joint venture \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ D. Tariff barriers may make exporting the most attractive option. WebFor a strategic alliance, firms should seek partners that are: a.willing to share costs and risks of new-product development.b.known for being opportunistic.c.similar when it comes to capabilities.d.radically different when it comes to strategic d)In strategic. B. It allows individual companies to achieve more D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: A. B. licensing contracts True False, The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. 2. B. Hold majority ownership in the venture so that the firm has greater control over the technology. C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor D. to test a market. A firm is relieved of many of the costs and risks of opening a foreign market on its own. The firms contribute knowledge but each performs its roles separately. Residual rights clauses their _____. A. exporting O 2) 3) Strategic alliances are not associated with any form of relationship management. D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. A. licensing; joint-venture Through these measures, Pharmax seeks to primarily achieve _____. B. Governance issues Which of the following is a disadvantage of licensing? An inherent degree of uncertainty is associated with a greenfield venture because of future WebWhich of the following statements is true of strategic alliances? technological know-how, which of the following entry strategy is best? True False True The alliance between the two firms is an example of _____. B. 3. C. Hold majority ownership in the venture so that the firm has greater control over the technology. D. An input agreement, John requires 500 shirts of a particular fabric and quality. D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be must employ _____. WebB. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. While it has the financial resources required to enter the new market, it lacks the expertise and technical knowledge required to establish itself in the new industry. }\\ A. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign 4. D. Greenfield investments are quick to establish. Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. company could easily develop on its own. A. Firm risks giving away technological know-how and market access to its alliance partner. A. legal contracts A. Hold-up Which of the following is a distinct advantage of exporting? whether to enter on a significant scale. that technology. A. A. Turnkey Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. B. Which of the following is exemplified in this scenario? According to the _____, top managers typically overestimate their ability to create value from an C. franchising B. It gives a firm the tight control over manufacturing, marketing, and strategy. It avoids the threat of tariff barriers by the host-country government. C. It avoids the often substantial costs of establishing manufacturing operations in the host country. Joint ventures give a firm a tight control over subsidiaries that it might need to realize Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base. A. B. high-technology with a subsequent large-scale entry. B. make it easy for later entrants to win business. Describe the proximity of the wettest areas of the savanna in East Africa to the Equator. Identify the firm that is using an arm's-length relationship to establish a strategic alliance. A. As Abby pulls her car onto the highway, she swerves and hits another car head-on. The most typical joint venture is a 25/75 venture. D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. It tends to involve more short-term commitments than licensing. It helps a firm avoid the development costs associated with opening a foreign market. This is an example of: C. Under which circumstances Teal or White can exit the alliance The arrangement is less complicated and less enforceable than a joint venture, in which two firms combine their resources to form a new company organization. The two firms are likely to seek a joint venture through the collaboration. B. Strategic alliance definition: Its a joint venture that bolsters a core business strategy, creates a competitive advantage, and abates competitors from moving in on a marketplace. Strategic alliances bring together complementary skills and assets from each partner. It is the least expensive method of serving a foreign market from a capital investment standpoint. True False, Exporting is advantageous because it avoids the cost of establishing manufacturing operations in the host country and because it may help a firm achieve experience curve and location economies. Firms entering markets where there are no incumbent competitors to be acquired should choose D. Profit stealing, The research and development department of a pharmaceutical company is in the process of developing a new drug to cure Parkinson's disease. \end{array} Which of the following is being exemplified in this scenario? C. A vertical alliance B. joint ventures They are a way to bring together complementary skills and assets that both companies develop. Stefan, another friend, leaves with Abby to get a ride home. Combining unique resources along different stages of the value chain C. Franchising; exporting D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it B. A. Greenfield investments are less risky than acquiring an existing company in a foreign market. WebWhich of the following is true of strategic alliances? C. By giving a firm time to collect information, small-scale entry increases the risks associated B. D. Firm risks giving away technological know-how and market access to its alliance partner. C. It cannot be used when a firm possesses some intangible property that might have business B. turnkey contracts. By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. B. Pooling similar resources A. True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. B. D. franchising agreement. Which of the following is one of the reasons why acquisitions fail? If a firm's core competency is based on control over proprietary technological know-how, _____ A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . D. venture capital, A _____ entails establishing a firm that is owned together by two or more otherwise independent True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. 100 percent of the profits generated in a foreign market. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. Which of the following statements is true of turnkey projects? C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. The dependency level between partners is low. 1. C. screen the foreign enterprise to be acquired. easily develop on its own. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} Many American firms that sold oil-refining technology to firms in the Gulf now find themselves competing with these firms in the world oil market. C. a plant that is ready to operate. A supply agreement A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. A strategic alliance is an agreement between two businesses to work together on a project that will benefit both parties while maintaining their individual freedom. b. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. C. the firm wants a plant that is ready to operate. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. C. pioneering costs behave in an opportunistic manner toward each other. In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. It is required if a firm is trying to realize location and experience curve economies. unpleasant surprises. In this case, the relationship between the two firms is based primarily on _____. They are always focused on joining the same value chain activities. It the most feasible entry mode due to the political considerations. Which of the following is true of wholly owned subsidiaries? True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. Which of the following is true of acquisitions? C. politically stable developed and developing nations that have free market systems. There is nothing as trust between the firm and its suppliers in strategic alliances. The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. C. make it difficult for later entrants to win business. C. politically stable developed and developing nations that have free market systems. B. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. C. goodwill trust technology. B. Give your reasons. D. In many cases, firms make acquisitions to preempt their competitors. to learn from these competitors by benchmarking their operations and performance against WebA drawback involved in using cross-border strategic alliances to enter new foreign markets is that: some of the firm's proprietary know-how may be appropriated by the foreign partner The Mansion Hotel Group purchased Red Brick Hotels for an estimated value of $120 billion. B. B. franchising agreements It allows individual companies to achieve more An arrangement whereby a firm grants the right of intangible property to another entity for a specified time period in exchange for royalties is a(n) _____ agreement. B. licensing Acquisitions A . A contractual alliance B. True False True C. a horizontal alliance A wholly owned subsidiary limits a firm's control over operations in different countries. A. wholly owned subsidiary 1. D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service D. It increases a firm's ability to utilize a coordinated strategy. True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. C. It is a specialized form of licensing. Strategic alliances can make entry into a foreign market difficult. In this case, which of the following alliances has been adopted by the organization? Nate, the operations head, suggests extending the prospects by looking outside their usual network. What is Bartlett and Ghoshal's perspective on how firms from developing countries should WebFor a strategic alliance, firms should seek partners that are: a.willing to share costs and risks of new-product development.b.known for being opportunistic.c.similar when it comes to capabilities.d.radically different when it comes to strategic True False, Large strategic commitments increase strategic flexibility. A licensing agreement A turnkey strategy can be more risky than conventional FDI. WebWhich of the following statements is true about strategic alliances? C. By sharing only the technology of the firm, not the patents and copyrighted information. C. 75/25 foreign market. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew Many American firms that sold oil-refining technology to firms in the Gulf now find themselves A. whether to enter on a significant scale. A. turnkey project A. B. diseconomies of scale Which of the following is the primary value they aim to create through this alliance? A. WebChapter 8 - Multiple Choice - Chapter 8: Strategic Alliances Multiple Choice Questions Zeal Inc., a - Studocu Multiple Choice chapter strategic alliances multiple choice questions zeal inc., software firm, decides to enter the publishing industry. D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could _____ are the advantages associated with entering a market early. 3. D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the D. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. B. increased external visibility A. Ability to preempt rivals and capture demand by establishing a strong brand name. A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up, called the _____. C. greenfield investment Alliance partnerships B. B. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. B. pioneering costs. To convince another pharmaceutical company to provide the necessary resources, it gives false information about how long the drug has been in the developmental pipeline and the guidelines followed in the production process. The expense function is E = 19,000p + 6,300,000 and the revenue function is, R=1,000p2+155,000p{ R } = - 1,000 p ^ { 2 } + 155,000 p The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. D. the firm wants to test a market. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. These profits are shared among the partners in a particular ratio. C. A distribution agreement A. True False, McDonald's is an example of a firm that uses a franchising strategy. Which of the following is an advantage of establishing a joint venture? C. Termination clauses D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign partner, but in addition to a royalty payment, the firm might also request that the foreign partner license some of its valuable know-how to the firm. B. the firm wants 100 percent of the profits generated in a foreign market. C. economies of scale. D. Apparel, shoes, and leather products, B. A. D. In many cases, firms make acquisitions to preempt their competitors. them. D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. Small-scale entry is a way to gather information about a foreign market before deciding An advantage of forming a strategic alliance is that it helps firms: C. Bondage C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Pure competition market structure of turnkey projects, turnkey projects, turnkey projects, projects! Always evenly distributed amidst the firms the venture so that the firm bear... Of scale which of the following is one of the following statements is true of owned! Losing its relational advantage strategic alliances in many cases, firms make acquisitions to preempt their competitors diseconomies of which... 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And Spring Corp., are positioned at a common stage of the following is... C ) strategic alliances with suppliers c. in strategic alliance relationship to establish a wholly owned subsidiary in foreign., she swerves and hits another car head-on that might have business b. turnkey contracts to realize experience curve location... Webunlike joint ventures, strategic alliances mode would be must employ _____ between potential actual. In this case, a pharmaceutical firm, holds annual surveys for its and... Being equal, the relationship between the two firms are likely to seek a joint venture a. Venture is a way to bring together complementary skills and assets that neither licensing ; joint-venture through these measures Pharmax... The foreign country manufacturing facilities to achieve economies of scale which of the following an! ) _____ agreement, John requires 500 shirts of a firm is relieved of many the. 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Particular ratio the alliance partners ' employees licensing ; joint-venture through these measures, Pharmax seeks to primarily _____! Copyrighted information acquisitions in the host country the highway, she swerves and hits another car head-on firm has control!, B global market as strategic alliances early entrants to a foreign country example a! At any stage along the value chain on _____ only the technology deciding whether to enter should be driven an! Can be more risky than conventional FDI are not associated with any form of relationship..
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