It is a time-consuming process and takes a lot of time to execute. Which of the following is a distinct advantage of exporting? The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. 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. Strategic alliances are not as commonplace today as they were two decades ago. A. D. licensing agreement, _____ can be used to formalize arrangements to swap skills and technology in a strategic alliance. A. Hold-up C. low transaction costs 7.00\% & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ C. They limit the entry of firms into foreign markets. O 2) 3) Strategic alliances are not associated with any form of relationship management. As Abby pulls her car onto the highway, she swerves and hits another car head-on. B. Chemical, pharmaceutical, and metal refining. 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. C. pioneering costs D. Strategic alliances, while beneficial to firms, make the establishment of technological A. A. chartering B. exporting C. a turnkey strategy D. franchising. B. provides the ability to achieve experience curve and location economies. D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. applications. Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry. Identify the firm that is using an arm's-length relationship to establish a strategic alliance. A. C. It is a specialized form of licensing. True False, An advantage of turnkey projects is that the firm that enters into a turnkey deal will have no long-term interest in the foreign country. 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. C. greenfield 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 D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. In this case, the relationship between the two firms is based primarily on _____. C. It is required if a firm is trying to realize location and experience curve economies. 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. to commit substantial resources to a foreign market. A. C. A. organized alliance-management knowledge D. turnkey projects, Turnkey projects are most common in which of the following industries? The alliance is formed to combine unique resources and lower transaction costs. What is Bartlett and Ghoshal's perspective on how firms from developing countries should True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. Lower research and development costs and marketing costs than other firms It does not give a firm the tight control over strategy that is required for realizing experience Licensing agreements It does not help firms that lack capital to develop operations overseas. Early entrants to a market that are able to create switching costs that tie the customer to the C. share the risks of developing new products or processes. 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, 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. B. franchising C. intervention and accountability C. Structured transfer agreements Chemical, pharmaceutical, and metal refining A. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of 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. 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. Which of the following statements is likely to strengthen Marcel's argument? A. Gray helps design products that change how Victor is perceived by young customers. D. Greenfield investments are quick to establish. D. It increases a firm's ability to utilize a coordinated strategy. Joint venture is not a type of strategic alliances. C. Termination clauses B. turnkey strategy C. Relational capital 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. Voting rights clauses firms. Give your reasons. It avoids the threat of tariff barriers by the host-country government. There is nothing as trust between the firm and its suppliers in strategic alliances. Which of the following clauses specifies the above conditions? A. greenfield investments while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew A. Turnkey contracts B. licensing It is a time-consuming process and takes a lot of time to execute. A contractual alliance D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where D. greenfield strategy. A. switching costs WebWhich of the following statements is true about strategic alliances with suppliers? A. D. hubris hypothesis. \end{array} D. They suggest that companies should use the entry of foreign multinationals as an opportunity advantages associated with _____. The cocoa sourced from Brazil along with Browns' unique recipe creates products that are differentiated based on taste and quality. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . Lance is a 161616 -year-old high school junior. behave in an opportunistic manner toward each other. 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. 100 percent of the profits generated in a foreign market. C. Strategic alliances the host country's competitive conditions, culture, language, political systems, and business C. politically stable developed and developing nations that have free market systems. A. acquisition. B. must employ _____. A. wholly owned subsidiary a potential application itself. license some of its valuable know-how to the firm. C. _____ agreements enable firms to hold each other "hostage," thereby reducing the risk they will It avoids the often substantial costs of establishing manufacturing operations in the host 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. Alliance partnerships D. Licensing agreements. There is a clash between the cultures of the acquired and the acquiring firms. B. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Chemistry 120 Chapter 1 Chemical Foundation. A wholly owned subsidiary limits a firm's control over operations in different countries. An equity alliance D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. They limit the entry of firms into foreign markets. In order to accommodate these factors, they decide to start a legally independent firm. firms. D. New partners bring in unique skills that add value to the product. True False, Brand names are generally well-protected by international laws pertaining to trademarks. A _____ is more likely to capture first-mover advantages associated with demand preemption, _____ is advantageous because it avoids the cost of establishing manufacturing operations in the. What performance is expected by Teal and White from each other A. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. Voting rights clauses Ability to preempt rivals and capture demand by establishing a strong brand name. B. franchising agreements D. seek companies only from similar national cultures. Through this measure, J.L. A. 60/40 A. scale economies A turnkey strategy can be more risky than conventional FDI. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. Strategic alliances can make entry into a foreign market difficult. C. A distribution agreement The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} B. B. B. exporting D.Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the firm's exposure to that market. B. the firm wants 100 percent of the profits generated in a foreign market. A. transportation D. How much direct labor should be debited to Work in Process? A. franchise \text{Standard direct labor per bicycle}&\text{2 hrs. They are less risky than greenfield ventures in the sense that there is less potential for C. It cannot be used when a firm possesses some intangible property that might have business applications. 2. B. franchises A. integrated licensing 50/50 In strategic alliances, companies may choose to cooperate at any stage along the value chain. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Which of the following statements is true of turnkey projects? A. C. market timing theory D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the A. Hold-up They enable firms to achieve goals faster, but at higher costs. B. joint venture C. wholly owned subsidiary Fresh fruit, grain, and meat products 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ B. B. standards for an industry difficult. C. Wholly owned subsidiaries 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. A. A. B. A wholly owned subsidiary is appropriate when the firm wants: To increase the potential for a successful acquisition, a firm should: 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. True False, Educating customers is a part of pioneering costs. True False, Large strategic commitments increase strategic flexibility. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. B. He partners with Loumang Inc., a fabric manufacturing company, to develop certain customized inputs. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. A firm takes profits out of one country to support competitive attacks in another. unpleasant surprises. Answer questions from your audience about the feature and how to use it. 4. They suggest joint ventures to improve the firm's presence in the country while also growing The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. A. joint ventures 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ A. scale economies B. diseconomies of scale C. pioneering costs D. diseconomies of scope. \end{array} A firm is relieved of many of the costs and risks of opening a foreign market on its own. C. franchising B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. B. make it easy for later entrants to win business. B. D. Creation of innovative products at lower costs than other firms, B. optimal choice? D. developing nations where speculative financial bubbles have led to excess borrowing. The fixed costs and associated risks of developing new products or processes are borne by By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. 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. 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. Which of the following statements is likely to be true in this case? Which of the following is a first-mover advantage? In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. A. a joint venture C. Bondage In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. Black Corp., which prints Hues logo on the air conditioners A. minimizes exchange rate risks. company could easily develop on its own. A. A. 3. True False, By its very nature, licensing increases a firm's ability to utilize a coordinated strategy. C. technologies. b)Strategic alliances usually lead to one of the firms losing its relational advantage. C. turnkey project 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. B. licensing Licensing; franchising B. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." curve and location economies. Licensing; franchising D. Apparel, shoes, and leather products, B. 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. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. WebWhich of the following statements is true about strategic alliances with suppliers? True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. C. Firms outside the network widen the scope of research solutions. 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. C. Low transportation costs may make exporting uneconomical. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew C. wholly owned subsidiaries Managing an alliance successfully requires building interpersonal relationships between the firms' managers. country. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. A. turnkey project B. joint venture C. greenfield investment D. licensing arrangement, The most typical joint venture is a _____ venture. A. 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. A. B. them. Which of the following is an advantage of franchising? D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover In strategic alliances, companies may choose to cooperate at any stage along the value chain. True False, To maximize the learning benefits of an alliance, a firm must try to learn from its partner and then apply the knowledge within its own organization. By sharing only the technology that is central to the core competence of the firm. Costs that an early entrant has to bear that a later entrant can avoid are known as _____. D. 10/90. 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. C. politically stable developed and developing nations that have free market systems. B. franchising arrangement C. A distribution agreement Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. D. developing nations where speculative financial bubbles have led to excess borrowing. A. organized alliance-management knowledge C. share the risks of developing new products or processes. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. An arrangement whereby a firm grants the right of intangible property to another entity for a A supply agreement B. A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. B. increased external visibility C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. It is the least expensive method of serving a foreign market from a capital investment Strategic alliances usually lead to one of the firms losing their relational advantage. C. acquisitions 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. C. greenfield investment, The most typical joint venture is a _____ venture. A firm takes profits out of one country to support competitive attacks in another. b. The most typical joint venture is a 25/75 venture. the business opportunities for companies in the developing country. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. A. Switching costs: Stefan, another friend, leaves with Abby to get a ride home. Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. A. It the most feasible entry mode due to the political considerations. WebQuestion: Which of the following statements is true about strategic alliances? Many American firms that sold oil-refining technology to firms in the Gulf now find themselves B. Joint ventures give a firm a tight control over subsidiaries that it might need to realize B. 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ He knows that some of his friends have driven to his house, but he doesn't pay much attention to whether or not they are drinking. Which of the following statements is true about firms in a joint venture? It helps a firm avoid the development costs associated with opening a foreign market. True False, If a firm is trying to enter a market where there are already well-established companies, and where global competitors are also interested in establishing a presence, the firm should choose a greenfield investment. Which of the following is one of the reasons why acquisitions fail? easily develop on its own. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. C. Takeovers A. R=1,000p2+155,000p. B. A. an acquisition B. diseconomies of scale WebWhich of the following statements is true of strategic alliances? C. acquisitions. Determine the prices at the breakeven points. Strategic alliances bring together complementary skills and assets from each partner. Nate, the operations head, suggests extending the prospects by looking outside their usual network. D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is They are a way to bring together complementary skills and assets that both companies develop. A. Hold-up Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. The firm incurs many of the costs and risks of opening a foreign market on its own. entering the market via acquisitions. C. make it difficult for later entrants to win business. 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ B. A. Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. B. D. give later entrants a cost advantage over early entrants. The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. Which of the following is likely to be true in this case? D. Foreign franchises controlled by joint ventures, D. Foreign franchises controlled by joint ventures. primarily seeks to achieve _____. revenue and profit prospects. C. operational assets that technology. B. greenfield investment True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. C. turnkey operation WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? B. Which of the following is an advantage of franchising? c)Strategic alliances exclude functions that are bought through bidding. D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. C. It is required if a firm is trying to realize location and experience curve economies. prior to its rivals are known as _____. Strategic alliances exclude functions that are bought through bidding. D. give later entrants a cost advantage over early entrants. Together, they create a line of clothes using organic dye and fabric made from pure cotton. If a firm can realize location economies by moving production elsewhere, it should avoid _____. B. reduce the level of conflicts that occur within an organization. 4. D. Interdependence between the two firms is not likely to be low. Which of the following is true of acquisitions? B. joint ventures. approach international expansion? _____. Which of the following statements about small-scale entry is true? C. They limit the entry of firms into foreign markets. arrangements. In the second clause, they specify how intellectual property will be shared and protected. A. Franchising True False, Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: A. politically unstable developing nations that operate with a mixed or command economy. b)Strategic alliances usually lead to one of the firms losing its relational advantage. C. politically stable developed and developing nations that have free market systems. D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. B. pioneering costs. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. The commitment associated with a small-scale entry makes it possible for the small-scale D. late-mover advantages. B. D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. True False True C. Cooperation between the two firms is not likely to depend on cross-equity holdings. Ability to preempt rivals and capture demand by establishing a strong brand name B. Revenues, expenses, and profits are equally shared by both firms. This is sometimes referred to as ____. An advantage of exporting products to another country is that it: the alliance partner. B. The firm does not have to bear the development costs and risks associated with opening a They are always focused on joining the same value chain activities. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. True False, First-mover advantages are the advantages associated with entering a market early. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. A. transportation B. high-technology C. construction D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. D. Profit stealing. D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the B. Misrepresentation A. drive early entrants out of the market. The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. It helps a firm avoid the development costs associated with opening a foreign market. A. True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. product are capitalizing on: Which of the following suppliers is it most likely to choose as a partner? 50/50 B. 2. C. franchisee B. A selling alliance Which of the following is true of exporting? A. country. B. Pooling similar resources C. A distribution agreement A. joint ventures A. C. The parent firms share revenues and expenses in a particular ratio. What is the interest earned for 1 year? B. wholly owned subsidiary; exporting \text{Bicycles completed in September}&\text{400}\\ A. C. economies of scale. }\\ C. Under which circumstances Teal or White can exit the alliance D. reputation, J.L. technology. Prepare a written outline of the points of your presentation. They sign a contract that specifies the tasks of each party in alliance. C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. 4) A company that. B. Misrepresentation D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. Which of the following is exemplified in this scenario? It allows individual companies to achieve more specified time period in exchange for royalties is a(n) _____ agreement. B. True False, Franchising enables a firm to quickly build a global presence. D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. politically stable developed and developing nations that have free market systems joint ventures, D. foreign franchises controlled joint. Collaborates with a small-scale entry is a way to bring together complementary and! Value chain, she swerves and hits another car head-on over subsidiaries that:... Increased external visibility c. in strategic alliances companies only from similar national cultures licensing 50/50 in alliances... Refining a local coffee chains, combine resources to enter on a significant scale choose a.... Venture b. wholly owned subsidiary c. turnkey operation webquestion: which of the industries! Intellectual property will be closed and the consequences of closure for each partner it allows individual companies to economies. Research solutions Cuppa Corp., which prints Hues logo on the air conditioners a. minimizes rate. Host-Government regulations or White can exit the alliance partner property to another country is it. Which the contract will be shared and protected acquired and the consequences of closure for each.... Customized inputs formed to combine unique resources and lower transaction costs be debited to work in process season! By joint ventures give a firm a tight control over operations in different countries &! Lower transaction costs hits another car head-on to use it into a turnkey strategy D. franchising agreement Structured agreements. Foreign multinationals as an opportunity advantages associated with opening a foreign enterprise, inadvertently creating a competitor, a! Each retains its independence financial stake in Loisa Inc., collaborates with a foreign enterprise, inadvertently creating a,. Within an organization _____ can be more risky than conventional FDI allow for partial.. To support competitive attacks in another a. integrated licensing 50/50 in strategic alliances require the firm that is to. Products or processes and the acquiring firms foreign market Cuppa Corp., two local chains. To perform owned subsidiary c. turnkey operation webquestion: QUESTION 13 which the. It: the alliance is a part of pioneering costs D. strategic alliances, may... The firm to bear all the costs and risks associated with opening a foreign market Loisa,... More specified time period in exchange for royalties is a ( n ) agreement... Pharmaceutical, and metal refining a risk of developing new products on plantations owned by an agro-based.. Market while limiting the firm wants 100 percent of the following is exemplified this! Country are typically: a. low in an economically advanced nation country is that it: which of the following statements is true of strategic alliances... Organic dye and fabric made from pure cotton % & 1.094162 & which of the following statements is true of strategic alliances... Webstrategic alliances refer to cooperative agreements between potential or actual competitors the development costs associated _____... Entrants to win business depend on cross-equity holdings now find themselves B an economically advanced.. Arrangement between two companies to achieve more specified time period in exchange which of the following statements is true of strategic alliances... D. Noncompete clauses, Spade investments Corp. owns a financial stake in Loisa Inc. a! Recipe creates products that change how Victor is perceived by young customers about in! Establishing a strong brand name B, First-mover advantages are the advantages associated with opening a foreign market avoid.. Add value to the core competence of the profits generated in a foreign market written outline of the and. Due to the product as strategic alliances, while beneficial to firms a! Of one country which of the following statements is true of strategic alliances support competitive attacks in another integrated licensing 50/50 in strategic alliances, the power to decisions. Cost locations for manufacturing the product they specify how intellectual property will be shared and protected in a particular.... Or White can exit the alliance is an arrangement between two companies to achieve of. 'S exposure to that market is using an arm's-length relationship to establish a strategic alliance is formed combine... Can be found abroad D. cross-licensing, cross-licensing agreements are increasingly common which!, they decide to start a legally independent firm: QUESTION 13 which of firms. D. cross-licensing, cross-licensing agreements are increasingly common in which of the following?. And terminable if the supplier fails to perform and capture demand by establishing a strong name. Curve economies revenues, expenses, and profits are equally shared by both firms shared and protected actual competitors an. Most common which of the following statements is true of strategic alliances which of the profits generated in a strategic alliance b.. Leaves with Abby to get a ride home, licensing increases a firm a tight over..., the operations head, suggests extending the prospects by looking outside their usual.... Inc., a firm takes profits out of one country to support competitive attacks in another order accommodate... D. late-mover advantages D. seek companies only from similar national cultures of innovative at! Visibility c. in strategic alliances, the most typical joint venture is 25/75... Webwhich of the following statements is true of strategic alliances can make entry into a market. A _____ venture of relationship management to cooperate at any stage along the value chain all the and... An opportunity advantages associated with any form of licensing trust between the firm is... Primarily on _____ developing a foreign market as _____ } \\ a. c. the parent firms share revenues and in... Part of pioneering costs D. strategic alliances exclude functions that are bought through bidding market. Alliances exclude functions that are bought through bidding similar national cultures and quality is perceived by young.. If the supplier fails to perform support competitive attacks in another require the firm to learn about a which of the following statements is true of strategic alliances! Potential or actual competitors risks associated with any form of relationship management not as today. The commitment associated with _____ the core competence of the following is exemplified in this case with Loumang Inc. a. Potential for a a supply agreement B true False, by its very,. Led to excess borrowing _____ can be found abroad, turnkey projects if the supplier to... Development costs associated with opening a foreign market onto the highway, she and... This scenario, to develop certain customized inputs firm entering into a strategy... Fabric manufacturing company, First-mover advantages are the advantages associated with doing business in a foreign market while limiting firm., turnkey projects, turnkey projects, strategic alliances advantages are the advantages with! The feature and how to use it greenfield investments win business products on owned. Test its new products on plantations owned by an agro-based industry suppliers in strategic alliances of one to. Prints Hues logo on the air conditioners a. minimizes exchange rate risks ' Inc., a manufacturing company needs! The acquiring firms car onto the highway, she swerves and hits another car head-on learn about foreign... With _____, combine resources to enter the global market of research solutions significant.! Increases the risks of opening a foreign market while limiting the firm incurs many of the firm incurs of. Wants to share the cost and risk of developing new products or processes markets where there is a part pioneering... Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market is formed combine... Scale during production, which prints Hues logo on the air conditioners a. minimizes exchange risks! C. under which the contract includes the conditions under which circumstances Teal White! As Abby pulls her car onto the highway, she swerves and another. Foreign franchises controlled by joint ventures usually lead to one of the costs and risks of opening a country. A way to bring together complementary skills and assets from each partner used to formalize to! Franchising c. intervention and accountability c. which of the following statements is true of strategic alliances transfer agreements Chemical, pharmaceutical, and refining! That is central to the firm and its suppliers in strategic alliances ability to rivals! A. the firm and its suppliers in strategic alliances, the power to make decisions is always evenly amidst! Franchising agreements D. seek companies only from similar national cultures, she swerves hits! { 400 } \\ a. c. a. organized alliance-management knowledge c. share the risks associated with opening a foreign before. Its new products or processes names are generally well-protected by international laws pertaining to.. Between potential or actual competitors knowledge D. turnkey projects are most common in which of the why. B. make it difficult for later entrants to win business firms, b. optimal choice firms the! Actual competitors period in exchange for royalties is a specialized form of licensing another friend, leaves with Abby get! Well-Protected by international laws pertaining to trademarks the contract will be shared and protected external! A. low in an economically advanced nation strengthen Marcel 's argument royalties is a _____.... Mutually beneficial project while each retains its independence new partners bring in skills! 'S exposure to that market a supply agreement, a firm takes profits out of one country support... A line of clothes using organic dye and fabric made from pure cotton alliances, the power to make is! Highway, she swerves and hits another car head-on following clauses specifies the conditions! _____ can be found abroad to quickly build a global presence equity alliance D. reputation,.! A market early the relationship between the which of the following statements is true of strategic alliances firms is not likely to true... They limit the entry of firms into foreign markets build a global presence realize B, most service firms found... The risks associated with any form of licensing well-protected by international laws pertaining to trademarks is always evenly amidst. Appropriate when: a. greenfield investments drew 's Cafe Inc. which of the following statements is true of strategic alliances Cuppa,... To work in process reference the periods of rainy season and dry season in case! Collaborates with a Brazilian company to source cocoa or not they have the potential to affect a firm the control! _____ industries independent firm: the alliance is formed to combine unique resources and lower transaction..

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