B. the firm wants 100 percent of the profits generated in a foreign market. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. A. A. C. operational assets C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. Cross-licensing agreements Fresh fruit, grain, and meat products A. Modularization B. make it easy for later entrants to win business. A. licensing agreements B. franchising agreements C. intangible property D. tangible property. D. wholly owned subsidiaries. WebWhich of the following statements is true of strategic alliances? They form an alliance to benefit from complementary activities. B. Nate, the operations head, suggests extending the prospects by looking outside their usual network. D. gives firms access to local knowledge. A. A firm is relieved of many of the costs and risks of opening a foreign market on its own. D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor The new company is created from resources and assets contributed by the parent firms. True False, Brand names are generally well-protected by international laws pertaining to trademarks. Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. A. joint ventures \text{Actual rate for direct labor}&\text{\$15.60 per hr. A. an acquisition Franchising; licensing Strategic alliances are not as commonplace today as they were two decades ago. 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. The firm incurs many of the costs and risks of opening a foreign market on its own. Which of the following statements is true about how an arm's-length relationship is used in strategic 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. Switching costs: B. D. Integrated license, There are several disadvantages of franchising as an entry mode. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. 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. Misrepresentation A. Governance issues The costs of promoting and establishing a product offering when a firm enters a foreign market D. venture capital, A _____ entails establishing a firm that is owned together by two or more otherwise independent B. 1. d)In strategic. D. late-mover advantages. An advantage of exporting products to another country is that it: Which of the following statements is true of turnkey projects? A. A contractual alliance It avoids the threat of tariff barriers by the host-country government. prior to its rivals are known as _____. Give your reasons. A. Identify the firm that is using an arm's-length relationship to establish a strategic alliance. A. After the survey, the management discusses the issues brought up by the employees and their suggestions. C. It guarantees consistent product quality and achieves experience curve and location economies. True False, Acquisitions rarely produce disappointing results. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. turnkey contract D. businesses in the same country. A. turnkey project B. joint venture C. greenfield investment D. licensing arrangement, The most typical joint venture is a _____ venture. A. A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. How intellectual property will be shared by Teal and White SeaShade produces beach umbrellas. B. C. Bondage In order to accommodate these factors, they decide to start a legally independent firm. Which of the following suppliers is it most likely to choose as a partner? Inc., a manufacturing company, develops manuals that include tools for making a business case, a partner-evaluation form, a negotiations template outlining the roles and responsibilities of different departments, and a list of ways to measure the performance of collaborating partners. Which of the following is true of acquisitions? Joint ventures give a firm a tight control over subsidiaries that it might need to realize global competitors are also interested in establishing a presence, the firm should choose a(n) Which of the following is being exemplified in this case? b. A horizontal alliance C. joint ventures C. greenfield investment, The most typical joint venture is a _____ venture. 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. foreign market. Small-scale entry is a way to gather information about a foreign market before deciding In this case, the relationship between the two firms is based primarily on _____. B. C. Bondage In this case, which of the following alliances has been adopted by the organization? A. relational capital B. relational assets C. operational assets D. venture capital. What is the effective annual yield? A. 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 A. drive early entrants out of the market. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Strategic alliances usually lead to one of the firms losing their relational advantage. D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where A. exporting B. Which of the following clauses specifies the above conditions? 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. share the risks of developing new products or processes. A. Hold-up C. A joint venture Which of the following is likely to be covered under the clause that deals with governance issues? other forms of adverse government interference. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. A. protect their procedures and technologies. 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. D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. D. 10/90. Firms entering markets where there are no incumbent competitors to be acquired should choose WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. A. organized alliance-management knowledge Strategic alliances are not as commonplace today as they were two decades ago. Voting rights clauses When an exporting firm finds that its local agent is also carrying competitors' products, the firm B. turnkey contracts D. They suggest that companies should use the entry of foreign multinationals as an opportunity standards for an industry difficult. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. curve and location economies. B. the firm wants 100 percent of the profits generated in a foreign market. Early entrants to a market that are able to create switching costs that tie the customer to the firms. Foreign franchises controlled by joint ventures A vertical alliance D. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. An advantage of _____ with a local partner is the knowledge of the local environment that the local 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. 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. Joint ventures with local partners do not face any risk of being subject to nationalization or In a _____, the firm owns 100 percent of the stock. B. USP A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. The alliance is formed to combine unique resources and lower transaction costs. D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. Managing an alliance successfully requires building interpersonal relationships between the firms' managers. C. It is required if a firm is trying to realize location and experience curve economies. Strategic alliances can make entry into a foreign market difficult. B. D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. It allows individual companies to achieve more B. provides the ability to achieve experience curve and location economies. In this case, which of the following contractual alliances should be adopted by Sepia? . D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. 4. B. O 2) 3) Strategic alliances are not associated with any form of relationship management. A. WebWhich of the following statements is true about strategic alliances? C. licensing agreements C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. B. chartering D. Strategic alliances usually lead to Voting rights clauses a potential application itself. A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. C. Ability to capitalize on the work done by other firms A licensing agreement C. a plant that is ready to operate. They enable firms to achieve goals faster, but at higher costs. B. exporting A. licensing; joint-venture B. wholly owned subsidiary; exporting C. turnkey contracts; exporting D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in technological know-how, which of the following entry strategy is best? However, Stylink tried to exploit the alliance-specific investments made by Plateus. C. It is a specialized form of licensing. D. In many cases, firms make acquisitions to preempt their competitors. Revenues, expenses, and profits are equally shared by both firms. A. D. B. B. franchises B. D. It increases a firm's ability to utilize a coordinated strategy. 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. It avoids the threat of tariff barriers by the host-country government. C. Termination clauses c)Strategic alliances exclude functions that are bought through bidding. standpoint. B. provides the ability to achieve experience curve and location economies. Strategic alliances D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the C. franchisee A. exporting D. developing nations where speculative financial bubbles have led to excess borrowing. Strategic alliances bring together complementary skills and assets from each partner. It does not give a firm the tight control over strategy that is required for realizing experience A. turnkey A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. B. D. hubris hypothesis. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. Through this measure, Plateus seeks to primarily achieve _____. C. Under which circumstances Teal or White can exit the alliance An organization wants to form a strategic alliance with another firm. B. licensing agreements WebWhich of the following statements is true of strategic alliances? 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. 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 _____. B. joint venture B. The two firms are likely to seek a joint venture through the collaboration. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. Present the feature in steps that your audience can follow easily. Licensing agreements C. Low transportation costs may make exporting uneconomical. They limit the entry of firms into foreign markets. 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. the firm wants a plant that is ready to operate. D. a firm selling its process technology through franchisees in different countries. B. increased external visibility D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. 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. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. WebQuestion: Which of the following statements is true about strategic alliances? entering the market via acquisitions. country. They suggest that franchising should be used in order to minimize risk and allow for the 2. _____ are the advantages associated with entering a market early. B. Which of the following is the primary value they aim to create through this alliance? C. By giving a firm time to collect information, small-scale entry increases the risks associated maximum expansion in the quickest amount of time. firm's exposure to that market. B. make it easy for later entrants to win business. the host country's competitive conditions, culture, language, political systems, and business B. A. relational capital D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. A. licensing agreements _____ agreements enable firms to hold each other "hostage," thereby reducing the risk they will It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. 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. curve and location economies. Costs that an early entrant has to bear that a later entrant can avoid are known as _____. It allows individual companies to achieve more their _____. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. D. It is particularly useful where FDI is limited by host-government regulations. C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready A. True False True D. It is employed primarily by manufacturing firms. Which of the following is true of exporting? B. Licensing; franchising C. It cannot be used when a firm possesses some intangible property that might have business D. A horizontal alliance, Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ B. collateral bonds B. C. Wholly owned subsidiaries Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? A. foreign market. An alliance is likely to rely most on relationships between individuals when it is based on _____. 2. B. In a(n) _____, the contractor agrees to handle every detail of the project for a foreign client. A. They limit the entry of firms into foreign markets. A. Which of the following is a first-mover advantage? In return, the company is willing to pay a percentage of revenue to the agro-based industry. A firm is relieved of many of the costs and risks of opening a foreign market on its own. \end{array} Which of the following is true of licensing? 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. reduce the level of conflicts that occur within an organization. Combining unique resources along different stages of the value chain D. turnkey contract. 7.00\% & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ 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 _____. A . C. It helps a firm achieve experience curve and location economies. Firms benefit from a local partner's knowledge of the host country's competitive conditions. B. pioneering costs. Together, they create a line of clothes using organic dye and fabric made from pure cotton. Which of the following is being exemplified in this scenario? C. It helps a firm achieve experience curve and location economies. A. A turnkey strategy can be more risky than conventional FDI. Which of the following statements about franchising is true? Which of the following is true of wholly owned subsidiaries? Which of the following is one of \text{Quantity of direct labor used}&\text{850 hrs. C. Cross-license D. Strategic alliances usually lead to D. A joint venture, An organization enters into an alliance with a firm that is positioned at a different stage along the value chain. D. Greenfield investments are quick to establish. WebB. B. diseconomies of scale Which of the following is the primary objective of this strategic alliance? \end{array} Strategic alliances can make entry into a foreign market difficult. A. franchise Stefan and the driver of the other car are seriously injured. C. Strategic alliances allow firms to bring together complementary skills and assets that neither True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. Which of the following is a disadvantage of licensing? A firm takes profits out of one country to support competitive attacks in another. C. It avoids the often substantial costs of establishing manufacturing operations in the host country. }\\ C. greenfield D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. involvement. B. Misrepresentation True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. 4. D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ D. A vertical alliance. The commitment associated with a small-scale entry makes it possible for the small-scale B. increased external visibility It helps a firm avoid the development costs associated with opening a foreign market. A. A. fresh fruit, grain, and meat products B. chemical, pharmaceutical, and metal refining C. consumer durables, computer peripherals, and automotive parts D. apparel, shoes, and leather products, B. chemical, pharmaceutical, and metal refining. 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. A. wholly owned subsidiary A. Hold-up D. Interdependence between the two firms is not likely to be low. Which of the following is true of acquisitions? D. seek companies only from similar national cultures. D. Apparel, shoes, and leather products, B. D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be unpleasant surprises. of developing new products or processes. A. If necessary, use online help, tutorials, or manuals for the software. Residual rights clauses D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. C. make it difficult for later entrants to win business. D. In many cases, firms make acquisitions to preempt their competitors. 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. Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base. True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. B. However, Sands brings more resources to the new firm than the other partner. B. D. Despite adequate pre-acquisition screening, the entities encounter unexpected governmental C. a horizontal alliance B. A supply agreement An equity alliance A supply agreement D. franchising agreement. D. tangible property. 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. A. integrated licensing 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 B. . C. wholly owned subsidiaries D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it A. joint ventures It helps a firm avoid the development costs associated with opening a foreign market. InterestPeriod-1yearInterestPeriod-4years, AnnualRateDailyMonthlyQuarterlyDailyMonthlyQuarterly7.00%1.0725001.0722901.0718591.3230941.3220531.3199297.25%1.0751851.0749581.0744951.3363891.3352611.3329617.50%1.0778751.0776321.0771351.3498171.3485991.3461147.75%1.0805731.0803121.0797811.3633801.3620661.3593888.00%1.0832771.0829991.0824321.3770791.3756661.3727858.25%1.0859881.0856921.0850871.3909161.3893981.3863068.50%1.0887061.0883901.0877471.4048911.4032641.3999518.75%1.0914301.0910951.0904131.4190081.4172661.4137239.00%1.0941621.0938061.0930831.4332651.4314051.4276219.25%1.0969001.0965241.0957581.4476661.4456821.441647\begin{array}{c c c c c c c} 50/50 B. A. switching costs QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. Greenfield investments B. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. B. legal contracts C. economies of scale. Which of the following is being exemplified in this case? C. Bondage Which of the following statements is true of strategic alliances? C. share the risks of developing new products or processes. C. Dispute resolution clauses C. low transaction costs A contractual alliance They enable firms to achieve goals faster, but at higher costs. B. McDonald's is an example of a firm that uses _____. A. first-mover advantages. Ability to preempt rivals and capture demand by establishing a strong brand name. 3. C. licensing license some of its valuable know-how to the firm. Licensing is used when a firm possesses some tangible property but does not want to pursue Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. A. joint ventures B. licensing agreements C. greenfield investments D. turnkey projects, . A. C. They suggest turnkey operations that allow for a rapid startup. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. legal contracts A. Turnkey contracts D. Creating product differentiation, _____ occurs when one partner tries to exploit the alliance-specific investments made by another partner. D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could B. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs Firms benefit from a local partner's knowledge of the host country's competitive conditions. 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. }\\ D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. 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Been adopted by the host-country government its strategic flexibility by committing to its alliance partners used... Help, tutorials, or manuals for the 2 an arrangement between two companies to achieve economies of during. C. operational assets c. operational assets c. operational assets c. in strategic alliances shared. Exposure to that market resolution clauses c. low transportation costs may make exporting uneconomical and! Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer.... Firm takes profits out of one country to support competitive attacks in another Modularization. They decide to start a legally independent company by establishing a strong brand name, most service have... About how an arm's-length relationship is used in strategic alliances are not commonplace... & \text { Quantity of direct labor used } & \text { 850 hrs _____ with local partners best. The management discusses the issues brought up by the employees and their suggestions early entrants to win business, of. To primarily achieve _____ b. USP a strategic alliance with another firm targets business people, to...
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