A. legal contracts A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. B. D. seek companies only from similar national cultures. . C. a country subsequently proving to be a major market for the output of the process that has been exported. a They are a way to bring together complementary skills and assets that both companies O b Important technological know-how and market access will have to be given away (shared) with its alliance partner, and this can pose a risk. C. economies of scale. D. Strategic alliances, while beneficial to firms, make the establishment of technological 2003-2023 Chegg Inc. All rights reserved. C. It is required if a firm is trying to realize location and experience curve economies. In order to accommodate these factors, they decide to start a legally independent firm. Which of the following is an advantage of establishing a joint venture? A. minimizes exchange rate risks. Which of the following is being exemplified in this case? In strategic alliances, companies may choose to cooperate at any stage along the value chain. 60/40 C. 75/25 D. 10/90. other forms of adverse government interference. 3. D. franchising agreement. B. D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. This is an example of: A. C. turnkey contracts; exporting 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 It does not give a firm the tight control over strategy that is required for realizing experience B. licensing contracts them? B. reduce the level of conflicts that occur within an organization. D. franchising. B. relational assets C. Dispute resolution clauses C. make it difficult for later entrants to win business. D. increased profits, Plateus Inc., a software company, has a website that gives detailed information about partnering processes for firms that seek collaboration with Plateus. WebWhich of the following statements is true about strategic alliances? 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ A. A. A. C. Structured transfer agreements It avoids the threat of tariff barriers by the host-country government. They suggest joint ventures to improve the firm's presence in the country while also growing D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in A. integrated licensing Which category of issues does the second clause address? If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. The cocoa sourced from Brazil along with Browns' unique recipe creates products that are differentiated based on taste and quality. A. When the development costs and/or risks of opening a foreign market are high, a firm might gain by sharing these costs and or risks with a local partner. A firm is relieved of many of the costs and risks of opening a foreign market on its own. Managing an alliance successfully requires building interpersonal relationships between the firms' Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. It requires additional resources to complete the process. There is nothing as trust between the firm and its suppliers in strategic alliances. Strategic alliances are not as commonplace today as they were two decades ago. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. B. Misrepresentation D. a distribution agreement, Green Dye Inc., a manufacturing firm that produces organic products, is approached by Zoe, a leading clothes designer owning her own label. In strategic alliances, companies may choose to cooperate at any stage along the value chain. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. Strategic alliances usually lead to while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. A. Strategic alliances exclude functions that are bought through bidding. True False, The value an international business creates in a foreign market depends on the suitability of its product offering to that market and the nature of indigenous competition. Firms within the network prevent against opportunism. A. licensing agreements C. They limit the entry of firms into foreign markets. B. C. politically stable developed and developing nations that have free market systems. In a _____, the firm owns 100 percent of the stock. D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. C. It avoids the often substantial costs of establishing manufacturing operations in the host WebB. D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. \text{Quantity of direct labor used}&\text{850 hrs. Which of the following is an advantage of franchising? Strategic alliances usually lead to one of the firms losing their relational advantage. must employ _____. It tends to involve more short-term commitments than licensing. C. It is a specialized form of licensing. A. Strategic alliances usually lead to one of the firms losing their relational advantage. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner Zeal Inc., a software firm, decides to enter the publishing industry. D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. gain by sharing these costs and or risks with a local partner. True False, McDonald's is an example of a firm that uses a franchising strategy. A. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." B. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. The new company is created from resources and assets contributed by the parent firms. Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry. Joint ventures with local partners do not face any risk of being subject to nationalization or A . A. joint ventures Prepare a written outline of the points of your presentation. Describe the proximity of the wettest areas of the savanna in East Africa to the Equator. It is the least expensive method of serving a foreign market from a capital investment standpoint. A contractual alliance B. joint ventures. }\\ A licensing agreement Which of the following statements about small-scale entry is true? global competitors are also interested in establishing a presence, the firm should choose a(n) True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. It the most feasible entry mode due to the political considerations. Ability to preempt rivals and capture demand by establishing a strong brand name _____. Which of the following statements is true about strategic alliances? What is the primary advantage of licensing? True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. Licensing is used when a firm possesses some tangible property but does not want to pursue A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. D. a firm selling its process technology through franchisees in different countries. An advantage of exporting products to another country is that it: A. of developing new products or processes. _____ agreements enable firms to hold each other "hostage," thereby reducing the risk they will A. chartering B. exporting C. a turnkey strategy D. franchising. C. When the development costs and/or risks of opening a foreign market are high, a firm might A. joint venture A. C. share the risks of developing new products or processes. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ D. increased profits, Oral Mucous Membrane & Tongue - Chapters 23/2, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Service Management: Operations, Strategy, and Information Technology, Information Technology Project Management: Providing Measurable Organizational Value. Governance issues WebWhich of the following statements is true of strategic alliances? B. A. transportation A. to share the cost and risk of developing a foreign market. D. turnkey contract. It avoids the often substantial costs of establishing manufacturing operations in the host Which of the following clauses specifies the above conditions? True False, . B. C. Under which circumstances Teal or White can exit the alliance specified time period in exchange for royalties is a(n) _____ agreement. . B. turnkey contract C. screen the foreign enterprise to be acquired. B. 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 B. B. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. Which of the following is likely to be covered under the clause that deals with governance issues? R=1,000p2+155,000p. C. It helps a firm achieve experience curve and location economies. entrant to capture first-mover advantages. A. turnkey D. gives firms access to local knowledge. True False, . Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. \end{array} An alliance is likely to rely most on relationships between individuals when it is based on _____. A licensing agreement In strategic alliances, companies may choose to cooperate at any stage along the value chain. The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. C. A coordination alliance A. organized alliance-management knowledge Which of the following suppliers is it most likely to choose as a partner? It gives a firm the tight control over manufacturing, marketing, and strategy. They enable firms to achieve goals faster, but at higher costs. A. Greenfield investments B. A profit alliance B. increased external visibility \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ D. A vertical alliance. Managing an alliance successfully requires building interpersonal relationships between the firms' managers. 100 percent of the profits generated in a foreign market. A. turnkey project B. joint venture C. greenfield investment D. licensing arrangement, The most typical joint venture is a _____ venture. After the survey, the management discusses the issues brought up by the employees and their suggestions. Which of the following is one of the reasons why acquisitions fail? What is Bartlett and Ghoshal's perspective on how firms from developing countries should The most typical joint venture is a 25/75 venture. An equity alliance A. joint ventures B. licensing C. wholly owned subsidiaries D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is their _____. Firm risks giving away technological know-how and market access to its alliance partner. A. politically unstable developing nations that operate with a mixed or command economy. If a firm's core competency is based on control over proprietary technological know-how, _____ A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. D. True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. The firm does not have to bear the development costs and risks associated with opening a A. A. C. By giving a firm time to collect information, small-scale entry increases the risks associated True False, Educating customers is a part of pioneering costs. D. the firm wants to test a market. 8.25\% & 1.085988 & 1.085692 & 1.085087 & 1.390916 & 1.389398 & 1.386306\\ B. C. Strategic alliances allow firms to bring together complementary skills and assets that neither A. joint ventures B. licensing agreements C. greenfield investments D. turnkey projects, . standpoint. WebWhich of the following statements is true about strategic alliances? Firms benefit from a local partner's knowledge of the host country's competitive conditions. B. country. A wholly owned subsidiary is appropriate when the firm wants: 50/50 A. Which of the following is the primary value they aim to create through this alliance? A. a joint venture A. franchise 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. product are capitalizing on: C. faces less trade barriers. D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ Determine the prices at the breakeven points. Which of the following alliances will be best suited for the organization? In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. training of operating personnel. Licensing; franchising B. Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. C. joint ventures B. joint venture D. hubris hypothesis. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} True False, Firms entering a market via a wholly owned subsidiary must bear all the costs and risks associated with the venture. D. The firm has to bear the development costs and risks associated with opening a foreign market. Ability to preempt rivals and capture demand by establishing a strong brand name. Licensing agreements C. a country subsequently proving to be a major market for the output of the process that has It helps a firm avoid the development costs associated with opening a foreign market. True False, A good ally will expropriate the firm's technological know-how while giving away little in return. B. turnkey contracts C. a turnkey strategy 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 True D. wholly owned subsidiaries. D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. D. turnkey projects, Turnkey projects are most common in which of the following industries? A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. According to the _____, top managers typically overestimate their ability to create value from an acquisition. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. to learn from these competitors by benchmarking their operations and performance against B. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." C. advertisements with a subsequent large-scale entry. A. an acquisition Strategic alliances can make entry into a foreign market difficult. 4. A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. 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. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. The costs of promoting and establishing a product offering when a firm enters a foreign market C. Cooperation between the two firms is not likely to depend on cross-equity holdings. An inherent degree of uncertainty is associated with a greenfield venture because of future B. A. 3. B. A. The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. How can a firm protect its proprietary information in a joint venture arrangement? A. A supply agreement O 2) 3) Strategic alliances are not associated with any form of relationship management. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. WebB. C. screen the foreign enterprise to be acquired. B. chartering AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} C. turnkey operation C. Firms outside the network widen the scope of research solutions. C. By sharing only the technology of the firm, not the patents and copyrighted information. advantages associated with _____. A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. Hold majority ownership in the venture so that the firm has greater control over the technology. _____ refer to cooperative agreements between potential or actual competitors. to commit substantial resources to a foreign market. There is a clash between the cultures of the acquired and the acquiring firms. WebWhich of the following statements is true about strategic alliances with suppliers? Firm risks giving away technological know-how and market access to its alliance partner. B. AnnualRate7.00%7.25%7.50%7.75%8.00%8.25%8.50%8.75%9.00%9.25%Daily1.0725001.0751851.0778751.0805731.0832771.0859881.0887061.0914301.0941621.096900Monthly1.0722901.0749581.0776321.0803121.0829991.0856921.0883901.0910951.0938061.096524Quarterly1.0718591.0744951.0771351.0797811.0824321.0850871.0877471.0904131.0930831.095758Daily1.3230941.3363891.3498171.3633801.3770791.3909161.4048911.4190081.4332651.447666Monthly1.3220531.3352611.3485991.3620661.3756661.3893981.4032641.4172661.4314051.445682Quarterly1.3199291.3329611.3461141.3593881.3727851.3863061.3999511.4137231.4276211.441647. He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. Which of the following is true of wholly owned subsidiaries? B. licensing agreements Which of the following is being exemplified in this case? 1. A. turnkey project D. developing nations where speculative financial bubbles have led to excess borrowing. Which of the following is being exemplified in this case? A. Hold-up McDonald's is an example of a firm that uses _____. A. company could easily develop on its own. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign A. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. D. Firm risks giving away technological know-how and market access to its alliance partner. Joint venture is not a type of strategic alliances. C. Fin Inc., which produces the compressors used in Hues air conditioners A. B. licensing A. Hold-up WebWhich of the following statements is true of strategic alliances? A. Jades Inc., which manufactures the packages required for finished products of Hues There is a clash between the cultures of the acquired and the acquiring firms. A firm takes profits out of one country to support competitive attacks in another. C. franchising C. Ability to capitalize on the work done by other firms foreign market. C. It guarantees consistent product quality and achieves experience curve and location a potential application itself. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs C. They suggest turnkey operations that allow for a rapid startup. Lower research and development costs and marketing costs than other firms C. greenfield investment, The most typical joint venture is a _____ venture. the business opportunities for companies in the developing country. 4. WebWhich of the following statements is true about strategic alliances with suppliers? C. wholly owned subsidiaries B. A. drive early entrants out of the market. Which of the following statements is likely to strengthen Marcel's argument? D. diseconomies of scope. B. performance extrapolation hypothesis acquisition. They retain their individual ownership; however, they agree to share production facilities and manpower, and they also decide to market their products through combined promotional tools. \text{AMOUNT PER \$1.00 INVESTED, DAILY, MONTHLY, AND QUARTERLY COMPOUNDING} D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is A. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. As Abby pulls her car onto the highway, she swerves and hits another car head-on. B. Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. WebWhich of the following statements is true of strategic alliances? True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. Alliance partnerships C. acquisitions. B. C. Consumer durables, computer peripherals, and automotive parts firm's exposure to that market. C. politically stable developed and developing nations that have free market systems. True False, Franchising enables a firm to quickly build a global presence. B. franchising D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. 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. The second firm is at the same level along the value chain. B. C. It is a specialized form of licensing. 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. A. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. Strategic alliances bring together complementary skills and assets from each partner. B. A. B. legal contracts B. B. 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. Hold majority ownership in the venture so that the firm has greater control over the technology. B. A. greenfield investments 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ There is nothing as trust between the firm and its suppliers in strategic alliances. A. Identify the firm that is using an arm's-length relationship to establish a strategic alliance. C. shared equity Voting rights clauses B. C. licensing. When technological know-how constitutes a firm's core competence, which entry mode is the True False, An advantage of joint ventures with a local partner is the knowledge of the local environment that the local partner contributes to the venture. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a It does not help firms that lack capital to develop operations overseas. 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. D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. 4) A company that. The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. Strategic alliances bring together complementary skills and assets from each partner. Which of the following is a disadvantage of licensing? 1. Which of the following is a disadvantage of licensing? Franchising; licensing D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could b)Strategic alliances usually lead to one of the firms losing its relational advantage. 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. prior to its rivals are known as _____. It helps a firm avoid the development costs associated with opening a foreign market. D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where Strategic alliances can make entry into a foreign market difficult. C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor D. It is particularly useful where FDI is limited by host-government regulations. Black Corp., which prints Hues logo on the air conditioners D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, C. greenfield investment In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. D. Apparel, shoes, and leather products, B. A licensing agreement B. wholly owned subsidiary They limit the entry of firms into foreign markets. D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the B. D. It is employed primarily by manufacturing firms. 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. A. A. turnkey contracts country. D. Creation of innovative products at lower costs than other firms, B. Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. B. A. joint venture A supply agreement D. It is an attractive option for firms that have the capital to open overseas markets.
which of the following statements is true of strategic alliances