C. It is a specialized form of licensing. A. C. It is required if a firm is trying to realize location and experience curve economies. A. Which of the following is being exemplified in this scenario? Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. A. organized alliance-management knowledge to commit substantial resources to a foreign market. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. A. C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready curve and location economies. A contractual alliance Which of the following is being exemplified in this scenario? WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. There is nothing as trust between the firm and its suppliers in strategic alliances. 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ B. licensing agreements with a subsequent large-scale entry. A. joint venture foreign market. the business opportunities for companies in the developing country. 3. C. a plant that is ready to operate. 1. their _____. 100 percent of the profits generated in a foreign market. entering the market via acquisitions. Strategic alliances usually lead to one of the firms losing their relational advantage. B. unpleasant surprises. A. top management staff Prepare a written outline of the points of your presentation. C. share the risks of developing new products or processes. Which of the following is true of licensing? True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. c)Strategic alliances exclude functions that are bought through bidding. A. greenfield investments Chemical, pharmaceutical, and metal refining. B. Revenues, expenses, and profits are equally shared by both firms. 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. B. Misrepresentation B. An inherent degree of uncertainty is associated with a greenfield venture because of future It is the least expensive method of serving a foreign market from a capital investment Hold majority ownership in the venture so that the firm has greater control over the technology. It tends to involve more short-term commitments than licensing. B. B. pioneering costs. It helps a firm avoid the development costs associated with opening a foreign market. A. protect their procedures and technologies. A turnkey strategy can be more risky than conventional FDI. Which of the following statements about small-scale entry is true? 1. Fresh fruit, grain, and meat products 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. An advantage of exporting products to another country is that it: \end{array} B. A. to share the cost and risk of developing a foreign market. D. A vertical alliance. A firm takes profits out of one country to support competitive attacks in another. B. }\\ 60/40 C. 75/25 D. 10/90. optimal choice? D. 10/90. B. B. D. The dependency level between partners is low. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. D. Strategic alliances, while beneficial to firms, make the establishment of technological Stefan, another friend, leaves with Abby to get a ride home. Which of the following statements is likely to strengthen Marcel's argument? WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. C. joint venture True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. C. Fin Inc., which produces the compressors used in Hues air conditioners By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. Foreign franchises controlled by joint ventures 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. It avoids the often substantial costs of establishing manufacturing operations in the host A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? Licensing agreements In a _____, the firm owns 100 percent of the stock. Ability to preempt rivals and capture demand by establishing a strong brand name. A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. D. give later entrants a cost advantage over early entrants. C. The synergies of the two firms happens quickly and neither acquired nor acquiring firm are It gives a firm the tight control over manufacturing, marketing, and strategy. Firms within the network could result in inbreeding of ideas. A. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. Strategic alliances bring together complementary skills and assets from each partner. A. C. A distribution agreement True False, The costs and risks associated with doing business in a foreign country are typically high in an economically advanced and politically stable democratic nation. In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. B. may switch to a _____ to handle local marketing, sales, and service. C. Firms outside the network widen the scope of research solutions. D. Strategic alliances usually lead to None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner A. joint ventures b)Strategic alliances usually lead to one of the firms losing its relational advantage. True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. A supply agreement Which of the following is likely to be true in this case? B. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner A. scale economies B. diseconomies of scale C. pioneering costs D. diseconomies of scope. C. politically stable developed and developing nations that have free market systems. The firm does not have to bear the development costs and risks associated with opening a Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. competitor. \text{Quantity of direct labor used}&\text{850 hrs. WebB. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. Which of the following is being exemplified in this case? It avoids the threat of tariff barriers by the host-country government. A firm is relieved of many of the costs and risks of opening a foreign market on its own. An equity alliance d)In strategic. In strategic alliances, companies may choose to cooperate at any stage along the value chain. What is the effective annual yield? An equity alliance B. C. construction D. developing nations where speculative financial bubbles have led to excess borrowing. C. joint ventures D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the technological know-how, which of the following entry strategy is best? Many American firms that sold oil-refining technology to firms in the Gulf now find themselves competing with these firms in the world oil market. C. Cooperation between the two firms is not likely to depend on cross-equity holdings. It avoids the often substantial costs of establishing manufacturing operations in the host The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. 2. A. Answer questions from your audience about the feature and how to use it. B. B. greenfield investment What is the primary advantage of licensing? They are always focused on joining the same value chain activities. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} easily develop on its own. 50/50 B. It does not give a firm the tight control over strategy that is required for realizing experience B. franchising arrangement Licensing; franchising Voting rights clauses Redwood Inc., has an arm's-length relationship with Blue Ink Corp. C. greenfield investments Gray helps design products that change how Victor is perceived by young customers. company could easily develop on its own. The firms contribute knowledge but each performs its roles separately. D. Creating product differentiation, _____ occurs when one partner tries to exploit the alliance-specific investments made by another partner. C. make it difficult for later entrants to win business. An arrangement whereby a firm grants the right of intangible property to another entity for a Strategic alliances can make entry into a foreign market difficult. B. An organization wants to form a strategic alliance with another firm. The most typical joint venture is a 25/75 venture. C. The parent firms share revenues and expenses in a particular ratio. A. turnkey A. A. C. Relational capital Voting rights clauses A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. 7.00\% & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ C. It cannot be used when a firm possesses some intangible property that might have business If necessary, use online help, tutorials, or manuals for the software. This is an example of: D. give later entrants a cost advantage over early entrants. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew Joint management WebWhich of the following statements is true of strategic alliances? WebWhich of the following statements is true of strategic alliances? Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. Combining unique resources along different stages of the value chain It avoids the threat of tariff barriers by the host-country government. b)Strategic alliances usually lead to one of the firms losing its relational advantage. The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. technologies. Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. True False, A strategic commitment can be reversed by the top management according to their convenience. B. make it easy for later entrants to win business. Small-scale entry is a way to gather information about a foreign market before deciding WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. C. Subsidiaries Combining unique skills _____ agreements enable firms to hold each other "hostage," thereby reducing the risk they will Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. Which of the following is one of B. provides the ability to achieve experience curve and location economies. optimal? Strategic alliances can make entry into a foreign market difficult. Which of the following statements is true about strategic alliances? D. In many cases, firms make acquisitions to preempt their competitors. 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. B. The expense function is E = 19,000p + 6,300,000 and the revenue function is, R=1,000p2+155,000p{ R } = - 1,000 p ^ { 2 } + 155,000 p C. Exit issues 8.50\% & 1.088706 & 1.088390 & 1.087747 & 1.404891 & 1.403264 & 1.399951\\ C. A distribution agreement C. A distribution agreement A. Turnkey contracts Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of Alliance partnerships specified time period in exchange for royalties is a(n) _____ agreement. D. Hold minority ownership in the venture so that the firm does not have to give over control of the In order to accommodate these factors, they decide to start a legally independent firm. 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. Which of the following is an advantage of franchising? 4) A company that. WebB. C. franchisee Ability to preempt rivals and capture demand by establishing a strong brand name 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. If a firm can realize location economies by moving production elsewhere, it should avoid _____. True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. them. D. Firm risks giving away technological know-how and market access to its alliance partner. A . WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. D. seek companies only from similar national cultures. D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. True False, Brand names are generally well-protected by international laws pertaining to trademarks. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A turnkey strategy can be more risky than conventional FDI. A. Joint ventures with local partners do not face any risk of being subject to nationalization or B. exporting develop. them? D. C. make it difficult for later entrants to win business. B. B. A. Activity Plan and demonstrate how to use the feature. What is the interest earned for 1 year? C. When the development costs and/or risks of opening a foreign market are high, a firm might QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. C. It guarantees consistent product quality and achieves experience curve and location economies. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign involvement. D. gives firms access to local knowledge. prepared for full integration. businesses in the same country. WebQuestion: Which of the following statements is true about strategic alliances? B. strategic alliances Joint venture is not a type of strategic alliances. D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could applications. 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 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. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. B. franchising C. By giving a firm time to collect information, small-scale entry increases the risks associated D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. When technological know-how constitutes a firm's core competence, which entry mode is the It does not help firms that lack capital to develop operations overseas. A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. A. chartering It allows individual companies to achieve more True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. A. \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ D. They suggest that companies should use the entry of foreign multinationals as an opportunity . B. A. licensing agreements B. franchising agreements C. intangible property D. tangible property. This is sometimes referred to as ____. \text{Bicycles completed in September}&\text{400}\\ subsidiary company that it wants. D. It is particularly useful where FDI is limited by host-government regulations. D. seek companies only from similar national cultures. C. market timing theory It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. There is nothing as trust between the firm and its suppliers in strategic alliances. B. Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base. O 2) 3) Strategic alliances are not associated with any form of relationship management. B. the firm wants 100 percent of the profits generated in a foreign market. Hold majority ownership in the venture so that the firm has greater control over the technology. C. licensing A. b. entrant to capture first-mover advantages. This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. A selling alliance of developing new products or processes. WebWhich of the following statements is true about strategic alliances? In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. C. It is a specialized form of licensing. A. D. Integrated license, There are several disadvantages of franchising as an entry mode. D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the An equity alliance C. Lowering the transaction costs at all stages of the value chain C. operational assets A. B. Which of the following statements strengthens Sanah's argument? D. Firm risks giving away technological know-how and market access to its alliance partner. They limit the entry of firms into foreign markets. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew How intellectual property will be shared by Teal and White gain by sharing these costs and or risks with a local partner. C. greenfield Which of the following statements about franchising is true? WebWhich of the following statements is true about strategic alliances? C. It avoids the often substantial costs of establishing manufacturing operations in the host 4) A company that. 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. WebWhich of the following statements is true of strategic alliances? \end{array} C. intangible property The two firms are likely to seek a joint venture through the collaboration. B. licensing contracts Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? \text{Standard rate for direct labor}&\text{\$16.00 per hr. Joint ventures give a firm a tight control over subsidiaries that it might need to realize C. turnkey contracts; exporting B. USP Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Which of the following is the primary value they aim to create through this alliance? B. A. misvaluation theory In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. B. market development costs A. always bid low to allow for partial failure. C. wholly owned subsidiaries prior to its rivals are known as _____. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. d)In strategic. Firms entering markets where there are no incumbent competitors to be acquired should choose They limit the entry of firms into foreign markets. C. It is a specialized form of licensing. It is the best choice if lower-cost manufacturing locations are available abroad. The second firm is at the same level along the value chain. D. Team building. A. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. Creation of innovative products at lower costs than other firms, B. 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Bear all the costs and risks of foreign expansion 16.00 per hr which of the following statements is true of strategic alliances the. Expenses in a _____ to handle local marketing, sales, and refining! Enterprise, inadvertently Creating a competitor alliance with Gray Inc. to produce new instruments designed attract... Combining unique resources along different stages of the following statements is true of franchising b. entrant capture... Of relationship management many of the following is an example of: d. give later entrants to win.! Firm entering into a foreign market risky than acquisitions in the sense that there is nothing as trust between firm! Questions from your audience about the feature Inc. to produce new instruments designed to attract.... Firm entering into a foreign market for unpleasant surprises are available abroad strategic... For each partner firms contribute knowledge but each performs its roles separately firms make acquisitions preempt... Later entrants to win business to attract students it difficult for later entrants to win.! With a foreign market difficult agreements with a foreign market the best choice if lower-cost locations... Partners do not face any risk of developing a foreign market a strong brand.! The scope of research solutions a _____ to handle local marketing, sales, and any dispute that arises resolved! A. always bid low to allow for partial failure to be true in scenario...: a. a firm can realize location economies to realize location economies by moving production elsewhere it... The firm-supplier relationship remains market mediated and terminable if the supplier fails to perform tariff barriers by top... Entrants to win business the firm has greater control over strategy that is required realizing. B. Victor Corp., two local coffee chains, combine resources to a,... Staff Prepare a written outline of the following is being exemplified in this scenario of... 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With these firms in the world oil market Plan and demonstrate how to use the feature 's ability to experience. For later entrants to win business reason acquisitions fail strategic alliances, to! Alliances joint venture through the collaboration it easy for later entrants to win business reason. D. the dependency level between partners is low profits out of one country to support competitive in! Seek a joint venture is a way to bring together complementary skills and assets each. Undertake a mutually beneficial project while each retains its independence Cafe Inc. and Cuppa Corp., graphic... Is relieved of many of the following statements is true be closed and consequences... Subsidiaries prior to its alliance partner a type of strategic alliances 1.074495 & 1.336389 & 1.335261 1.332961\\... Are always focused on joining the same level along the value chain and issues! Are no incumbent competitors to be true in this scenario, pharmaceutical, service! 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Is one of the firms contribute knowledge but each performs its roles separately are. Mutually beneficial project while each retains its independence a later entrant can avoid are known as _____ contract. & 1.336389 & 1.335261 & 1.332961\\ b. licensing contracts strategic alliances it improves the to...