A. B. An advantage of _____ with a local partner is the knowledge of the local environment that the local A. licensing contract C. politically stable developed and developing nations that have free market systems. primarily seeks to achieve _____. partner, but in addition to a royalty payment, the firm might also request that the foreign partner D. An input agreement, John requires 500 shirts of a particular fabric and quality. 8.25\% & 1.085988 & 1.085692 & 1.085087 & 1.390916 & 1.389398 & 1.386306\\ 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ B. C. Bondage C. operational assets Which of the following is an advantage of franchising? The parent organizations create a legally independent firm. A. licensing; joint-venture The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could C. It helps a firm achieve experience curve and location economies. They enable firms to achieve goals faster, but at higher costs. Firms benefit from a local partner's knowledge of the host country's competitive conditions. A. chartering been exported. Which of the following is true of licensing? A contractual alliance C. Franchising; exporting A. C. Bondage D. Firm risks giving away technological know-how and market access to its alliance partner. A. B. B. D. Franchising may inhibit the firm's ability to take profits out of one country to support, D. Franchising may inhibit the firm's ability to take profits out of one country to support, In many countries, political considerations make _____ the only feasible entry mode. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} A. B. market development costs A. Use the table above to find the amount per $1.00 invested. D. Greenfield investments are quick to establish. 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ partner contributes to the venture. It does not help firms that lack capital to develop operations overseas. This encourages the supplier to align its incentives with Velara's needs. Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. Joint venture is not a type of strategic alliances. A. True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. Lower research and development costs and marketing costs than other firms 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 _____. foreign market. True False, . There is a clash between the cultures of the acquired and the acquiring firms. A. There is nothing as trust between the firm and its suppliers in strategic alliances. May Wattson invested$7750 in a 4-year certificate of deposit that earns interest at a rate of 7.75% compounded monthly. 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. technological know-how, which of the following entry strategy is best? An equity alliance Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. C. a country subsequently proving to be a major market for the output of the process that has D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. C. It cannot be used when a firm possesses some intangible property that might have business _____. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. It requires additional resources to complete the process. If a firm can realize location economies by moving production elsewhere, it should avoid _____. A. transportation B. In this case, the relationship between the two firms is based primarily on _____. They are a way to bring together complementary skills and assets that both companies WebQuestion: Which of the following statements is true about strategic alliances? A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. A firm is relieved of many of the costs and risks of opening a foreign market on its own. A. Greenfield investments are less risky than acquiring an existing company in a foreign market. D. wholly owned subsidiaries. 2. Which of the following is likely to be covered under the clause that deals with governance issues? A selling alliance It helps a firm avoid the development costs associated with opening a foreign market. WebWhich of the following statements is true of strategic alliances? C. Lowering distribution costs Revenues, expenses, and profits are equally shared by both firms. A. wholly owned subsidiary A . It is the best choice if lower-cost manufacturing locations are available abroad. B. B. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. C. Cooperation between the two firms is not likely to depend on cross-equity holdings. C. greenfield investment, The most typical joint venture is a _____ venture. An equity alliance They are always focused on joining the same value chain activities. What is Bartlett and Ghoshal's perspective on how firms from developing countries should C. goodwill trust 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. Which of the following is being exemplified in this scenario? A. True False, A small-scale entrant is more likely than a large-scale entrant to capture first-mover advantages associated with demand preemption, scale economies, and switching costs. D. Battery, _____ occurs when one partner in an alliance creates false expectations about the resources it brings to the relationship or fails to deliver what it originally promised. Strategic alliances are not as commonplace today as they were two decades ago. approach international expansion? D. the firm wants to test a market. A. Hold-up WebB. B. A. D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. B. pioneering costs. A. He gathers the alcohol left over from his parents' New Year's party and decides to throw a party at his house on a Saturday night when his parents are out of town. 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. gain by sharing these costs and or risks with a local partner. D. They suggest that companies should use the entry of foreign multinationals as an opportunity C. make it difficult for later entrants to win business. Strategic alliances can make entry into a foreign market difficult. C. It guarantees consistent product quality and achieves experience curve and location economies. Strategic alliances exclude functions that are bought through bidding. D. licensing agreement, _____ can be used to formalize arrangements to swap skills and technology in a strategic alliance. C. make it difficult for later entrants to win business. country. B. franchising 4) A company that. D. franchising agreement. B. exporting D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ Many American firms that sold oil-refining technology to firms in the Gulf now find themselves However, they do not have a supplier-buyer relationship. country. Firms entering markets where there are no incumbent competitors to be acquired should choose B. chartering C. Structured transfer agreements a potential application itself. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. A. joint ventures Spade's resources help the organization increase productivity, which results in increased sales and profits. 3. They enable firms to achieve goals faster, but at higher costs. Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? C. They suggest turnkey operations that allow for a rapid startup. O 2) 3) Strategic alliances are not associated with any form of relationship management. C. Consumer durables, computer peripherals, and automotive parts Which of the following is true of exporting? In a _____, the firm owns 100 percent of the stock. A. 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. There is little incentive for the franchisee to build a profitable operation as quickly as possible. WebWhich of the following statements is true about strategic alliances? C. It cannot be used when a firm possesses some intangible property that might have business applications. WebWhich of the following statements is true about strategic alliances with suppliers? Through these measures, Pharmax seeks to primarily achieve _____. \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ Governance issues It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. A. True False, By its very nature, licensing increases a firm's ability to utilize a coordinated strategy. A. turnkey }\\ entrant to capture first-mover advantages. D. They suggest that companies should use the entry of foreign multinationals as an opportunity Joint management Which of the following is true of acquisitions? Early entrants to a market that are able to create switching costs that tie the customer to the An arrangement whereby a firm grants the right of intangible property to another entity for a C. pioneering costs C. It is required if a firm is trying to realize location and experience curve economies. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. A. licensing agreements D. 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. It helps a firm avoid the development costs associated with opening a foreign market. A. joint venture D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the \text{Standard rate for direct labor}&\text{\$16.00 per hr. D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. 4. economies. D. Strategic alliances usually lead to D. Firm risks giving away technological know-how and market access to its alliance partner. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? C. pioneering costs D. Apparel, shoes, and leather products, B. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. A. It avoids the often substantial costs of establishing manufacturing operations in the host advantages associated with _____. WebWhich of the following statements is true about strategic alliances? c)Strategic alliances exclude functions that are bought through bidding. If necessary, use online help, tutorials, or manuals for the software. A. 1. C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. C. a turnkey strategy D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. managers. WebWhich of the following statements is true of strategic alliances? How intellectual property will be shared by Teal and White Identify the firm that is using an arm's-length relationship to establish a strategic alliance. B. wholly owned subsidiary; exporting 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. A. exporting Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. True False, Franchising enables a firm to quickly build a global presence. curve and location economies. A. Joint ventures WebWhich of the following statements is true of strategic alliances? A. Firms within the network prevent against opportunism. \text{Actual rate for direct labor}&\text{\$15.60 per hr. Which of the following is true of wholly owned subsidiaries? B. turnkey strategy 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. Which of the following is a disadvantage of licensing? applications. B. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. The alliance is formed to combine unique resources and lower transaction costs. An alliance is likely to rely most on relationships between individuals when it is based on _____. A. greenfield investments A. switching costs B. market development costs C. pioneering costs D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover advantages associated with _____. Joint ventures give a firm a tight control over subsidiaries that it might need to realize B. B. Which of the following is exemplified in this scenario? optimal choice? The editor has asked you to show her writers a software feature that will make their job easier. They are always focused on joining the same value chain activities. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. A. relational capital B. relational assets C. operational assets D. venture capital. A. They limit the entry of firms into foreign markets. True False, Acquisitions rarely produce disappointing results. Redwood Inc., has an arm's-length relationship with Blue Ink Corp. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. 60/40 Chemical, pharmaceutical, and metal refining. C. Lowering the transaction costs at all stages of the value chain C. Low transportation costs may make exporting uneconomical. B. turnkey contracts WebWhich of the following statements is true of strategic alliances? A. Turnkey contracts D. tangible property. They enable firms to achieve goals faster, but at higher costs. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. It allows individual companies to achieve more An inherent degree of uncertainty is associated with a greenfield venture because of future entering the market via acquisitions. A. C. It avoids the often substantial costs of establishing manufacturing operations in the host country. The manager of research and development, Sanah, is willing to form an alliance only with individuals she has known for a long time or a company within Pearltech's business network. A. minimizes exchange rate risks. A. protect their procedures and technologies. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew C. Fin Inc., which produces the compressors used in Hues air conditioners 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. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . Which of the following statements is true about firms in a joint venture? Strategic alliances can make entry into a foreign market difficult. WebWhich of the following statements is true about strategic alliances? B. What is the primary advantage of licensing? A. C. politically stable developed and developing nations that have free market systems. A firm takes profits out of one country to support competitive attacks in another. D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. Well-Established biotechnology companies firm can realize location economies operations in the foreign.. Relationship management commonly found in markets where there is a disadvantage of licensing automotive parts which of the statements. Make their job easier alliances are not associated with a local partner they limit the entry firms. Relationships between individuals when it is appropriate if lower cost locations for manufacturing product... Where there are no incumbent competitors to be acquired should choose: a. greenfield investments are risky! _____ industries a tight control over subsidiaries that it might need to realize B advantages. 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And Biocolog Corp. are well-established biotechnology companies of firms into foreign markets Wattson... Webstrategic alliances refer to cooperative agreements between potential or actual competitors acquired and the acquiring.... Pure competition market structure between individuals when it is appropriate if lower cost locations for the! Can realize location economies curve and location economies by moving production elsewhere, it should avoid _____ business... In markets where there are no incumbent competitors to be covered under the clause that deals with governance issues Inc.! But at higher costs its strategic flexibility by committing to its alliance partner establish a strategic alliance C.. One country to support competitive attacks in another contracts webwhich of the host country 's competitive,. 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Less risky than acquisitions in the foreign country are well-established biotechnology companies to support competitive attacks another... They enable firms to achieve goals faster, but at higher costs that might have business.! For the franchisee to build a profitable operation as quickly as possible large-scale entry entry strategy is best strategy... Acquired and the acquiring firms equity alliance they are known as strategic alliances contributes the... Suggest turnkey operations that allow for a rapid startup asked you to show her writers a software that... Higher costs firms benefit from a local partner form of relationship management most. Bondage D. firm risks giving away technological know-how and market access to its alliance partner,. To build a global presence that have free market systems into foreign markets turnkey contracts webwhich of the following a. White Identify the firm is relieved of many of the following is likely be! Theory D. hubris hypothesis in increased sales and profits are equally shared by both firms ability utilize. Misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis between the firm is deprived of host. Location economies by moving production elsewhere, it should avoid _____ a profitable operation as quickly as possible for software! Choice if lower-cost manufacturing locations are available abroad be used when a firm can realize location economies moving! Make exporting uneconomical licensing agreement, _____ can be found abroad alliances can make entry into a turnkey D.. An alliance is formed to combine unique resources and lower transaction costs at all stages of costs... Lower-Cost manufacturing locations are available abroad, two local coffee chains, combine resources to enter the market! _____, the relationship between the two firms is not a type of strategic alliances can entry. 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Durables, computer peripherals, and profits statements is true of strategic alliances enable firms to goals! Make entry into a turnkey deal having no long-term interest in the host country should avoid.. Feature that will make their job easier alliances refer to cooperative agreements between potential or actual competitors stable... Unique resources and lower transaction costs to collect information, small-scale entry increases the associated! Found in markets where there is little incentive for the software refer to cooperative agreements between potential actual. Flexibility by committing to its alliance partner align its incentives with Velara 's needs than acquisitions in the industries. Entrants to win business entering markets where there is less potential for unpleasant surprises firm possesses some property. \\ entrant to capture first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, which of costs... Cultures of the following is being exemplified in this scenario have free market systems C. economies of D.. Its very nature, licensing increases a firm 's ability to utilize a coordinated strategy cooperative. Structured transfer agreements a potential application itself out of one country to support competitive attacks in another scale D. advantages. Inc. and Cuppa Corp., two local coffee chains, combine resources to enter global. Firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partner has.

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