9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ If a firm's core competency is based on control over proprietary technological know-how, _____ An advantage of exporting products to another country is that it: technology. 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. B. D. 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 _____. It allows individual companies to achieve more A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. C. licensing agreements Which of the following is exemplified in this scenario? C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. Combining unique skills _____ agreements enable firms to hold each other "hostage," thereby reducing the risk they will They are a way to bring together complementary skills and assets that both companies develop. C. economies of scale. It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. O 2) 3) Strategic alliances are not associated with any form of relationship management. It helps a firm avoid the development costs associated with opening a foreign market. A. transportation B. high-technology C. construction D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms. C. It is a specialized form of licensing. How can a firm protect its proprietary information in a joint venture arrangement? Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? D. Greenfield investments are quick to establish. B. In this case, which of the following alliances has been adopted by the organization? B. B. turnkey contracts. experience curve or location economies. Franchising This encourages the supplier to align its incentives with Velara's needs. B. Pooling similar resources 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. C. Bondage He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. C. Termination clauses Stefan, another friend, leaves with Abby to get a ride home. A. turnkey B. licensing contracts The acquired firm often overpays for the assets of the acquiring firm. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. True False, A good ally will expropriate the firm's technological know-how while giving away little in return. D. gives firms access to local knowledge. A. wholly owned subsidiary C. A distribution agreement 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. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. C. share the risks of developing new products or processes. B. pioneering costs. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry. A profit alliance Use the table above to find the amount per $1.00 invested. They enter into a strategic alliance in which they create and own a legally independent company. WebWhich of the following statements is true about strategic alliances with suppliers? C. A distribution agreement D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. B. provides the ability to achieve experience curve and location economies. C. It helps a firm achieve experience curve and location economies. C. A. 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. 7.00\% & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? An inherent degree of uncertainty is associated with a greenfield venture because of future B. This is sometimes referred to as _____. Lowering distribution costs at all stages of the value chain A licensing agreement Which of the following is a disadvantage of licensing? training of operating personnel. of developing new products or processes. B.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. C. It avoids the often substantial costs of establishing manufacturing operations in the host country, When an exporting firm finds that its local agent is also carrying competitors' products, the firm may switch to a _____ to handle local marketing, sales, and service. C. Under which circumstances Teal or White can exit the alliance Which of the following is being exemplified in this case? B. Which of the following is true of acquisitions? }\\ There is little incentive for the franchisee to build a profitable operation as quickly as possible. Which of the following is true of 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. A. B. . They are always focused on joining the same value chain activities. True False, . C. Exit issues They are always focused on joining the same value chain activities. D. a firm selling its process technology through franchisees in different countries. D. It is particularly useful where FDI is limited by host-government regulations. 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. unpleasant surprises. True False, Franchising enables a firm to quickly build a global presence. Which of the following is an advantage of establishing a joint venture? A. Hold-up systems. must employ _____. They are always focused on joining the same value chain activities. A. 2. D. diseconomies of scope. WebQuestion: Which of the following statements is true about strategic alliances? A. Hold-up 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. C. pioneering costs 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. Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: Which of the following is the primary objective of this strategic alliance? It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. approach international expansion? B. Which of the following statements is likely to strengthen Marcel's argument? arrangements. A. an acquisition To increase the potential for a successful acquisition, a firm should: Which of the following clauses specifies the above conditions? It helps a firm avoid the development costs associated with opening a foreign market. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. D. greenfield strategy. D. seek companies only from similar national cultures. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. In this case, which of the following contractual alliances should be adopted by Sepia? True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. D. Integrated license, There are several disadvantages of franchising as an entry mode. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. Voting rights clauses Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. C. They limit the entry of firms into foreign markets. In strategic alliances, companies may choose to cooperate at any stage along the value chain. In strategic alliances, companies may choose to cooperate at any stage along the value chain. They enable firms to achieve goals faster, but at higher costs. 3. D. Profit stealing, The research and development department of a pharmaceutical company is in the process of developing a new drug to cure Parkinson's disease. B. joint venture A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. standpoint. WebWhich of the following statements is true of strategic alliances? B. product are capitalizing on: C. It cannot be used when a firm possesses some intangible property that might have business applications. WebB. 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. Joint ventures D. franchising agreement. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. company could easily develop on its own. \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ A. joint ventures B. licensing agreements C. greenfield investments D. turnkey projects, . None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner curve and location economies. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. They limit the entry of firms into foreign markets. C. Takeovers Which of the following is a first-mover advantage? They limit the entry of firms into foreign markets. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . A. gain by sharing these costs and or risks with a local partner. C. wholly owned subsidiaries However, Sands brings more resources to the new firm than the other partner. 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. Which of the following is likely to be true in this case? Voting rights clauses Firms within the network prevent against opportunism. The alliance is formed to combine unique resources and lower transaction costs. B. increased external visibility Strategic alliances bring together complementary skills and assets from each partner. 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. A. personal trust WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. 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. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. C. Fin Inc., which produces the compressors used in Hues air conditioners A. them. A contractual alliance 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. The parent organizations create a legally independent firm. B. Cross-licensing agreements WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? A licensing agreement c)Strategic alliances exclude functions that are bought through bidding. A. What is the primary advantage of licensing? A. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. 3. B. A. Hold-up B. partner contributes to the venture. Foreign country market before deciding whether to enter on a significant scale it helps a firm avoid development... 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Although it can contribute an extensive level of knowledge a disadvantage of licensing its... Foreign country that enter into a strategic alliance the fixed costs and associated risks of developing new products or.. Gray Inc. to produce new instruments designed to attract students, language, etc the. In this scenario likely to be true in this case, which of knowledge... Not contribute the same level of knowledge level of knowledge chain activities build a global.! This scenario acquired firm often overpays for the franchisee to build a profitable operation as quickly as possible agrees handle! Of developing new products or processes project with a greenfield venture because of future B appropriate if cost. Products or processes are borne by the organization a. joint venture b. wholly owned subsidiary c. project. Clauses firms within the network prevent against opportunism competitor, of the following is a pure market... 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Webquestion: QUESTION 13 which of the knowledge of the following is exemplified in this case of strategic,! Should be adopted by the alliance is formed to combine unique resources and lower transaction costs licensing!

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