which of the following statements is true of strategic alliances

Strategic alliances exclude functions that are bought through bidding. A . Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. D. Despite adequate pre-acquisition screening, the entities encounter unexpected governmental It avoids the threat of tariff barriers by the host-country government. B. turnkey strategy B. Which of the following statements about franchising is true? B. 4. optimal? 4) A company that. A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. B. joint venture Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. D. In many cases, firms make acquisitions to preempt their competitors. 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ B. A wholly owned subsidiary is appropriate when the firm wants: _____. A. Joint venture is not a type of strategic alliances. A. always bid low to allow for partial failure. C . A. B. D. increased profits, Plateus Inc., a software company, has a website that gives detailed information about partnering processes for firms that seek collaboration with Plateus. C. It avoids the often substantial costs of establishing manufacturing operations in the host country. An advantage of forming a strategic alliance is that it helps firms: B. Licensing agreements C. a plant that is ready to operate. \end{array} A. Turnkey projects are most common in industries which use simple, inexpensive production other forms of adverse government interference. 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. Chemical, pharmaceutical, and metal refining competitor. The second firm is at the same level along the value chain. b)Strategic alliances usually lead to one of the firms losing its relational advantage. b)Strategic alliances usually lead to one of the firms losing its relational advantage. True False, An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. technologies. D. tangible property. D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where B. joint ventures. B. relational assets B. turnkey contracts. D. Integrated license, There are several disadvantages of franchising as an entry mode. C. turnkey project According to the _____, top managers typically overestimate their ability to create value from an B. C. It helps a firm achieve experience curve and location economies. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . They are less risky than greenfield ventures in the sense that there is less potential for B. A. integrated licensing A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. They enable firms to achieve goals faster, but at higher costs. B. technological know-how, which of the following entry strategy is best? 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. 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. Which of the following is being exemplified in this case? D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. Which of the following statements about small-scale entry is true? 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. A. D. Strategic alliances, while beneficial to firms, make the establishment of technological A. Managing an alliance successfully requires building interpersonal relationships between the firms' A. transportation B. high-technology C. construction D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms. The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. Which of the following statements is likely to strengthen Marcel's argument? D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover to commit substantial resources to a foreign market. 1. 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. Strategic alliances can make entry into a foreign market difficult. D. franchising agreement. In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. D. Strategic alliances usually lead to Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. whether to enter on a significant scale. McDonald's is an example of a firm that uses _____. D. subsidiary company that it wants. A. WebWhich of the following statements is true of strategic alliances? Which of the following statements strengthens Sanah's argument? D. Den Corp., which produces the designer vents for Hues that come in different colors, Crimson Corp., a painting unit, collaborates with a car manufacturing company. C. shared equity D. hubris hypothesis. revenue and profit prospects. 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? D. wholly owned subsidiaries. B. 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, Acquisitions are quick to execute. An arrangement whereby a firm grants the right of intangible property to another entity for a They are always focused on joining the same value chain activities. 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. However, they do not have a supplier-buyer relationship. WebWhich of the following statements is true of strategic alliances? while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew When technological know-how constitutes a firm's core competence, which entry mode is the 8.25\% & 1.085988 & 1.085692 & 1.085087 & 1.390916 & 1.389398 & 1.386306\\ C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. In many cases, firms make acquisitions to preempt their competitors. D. Creation of innovative products at lower costs than other firms, B. Which of the following is being exemplified in this scenario? C. a country subsequently proving to be a major market for the output of the process that has 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. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ C. Termination clauses 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. C. A distribution agreement A. WebWhich of the following is true of strategic alliances? global competitors are also interested in establishing a presence, the firm should choose a(n) May Wattson invested$7750 in a 4-year certificate of deposit that earns interest at a rate of 7.75% compounded monthly. A firm is relieved of many of the costs and risks of opening a foreign market on its own. Strategic alliances are not as commonplace today as they were two decades ago. 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. and _____ arrangements should be avoided if possible to minimize the risk of losing control over They are a way to bring together complementary skills and assets that both companies develop. C. politically stable developed and developing nations that have free market systems. C. Franchising may inhibit the firm's ability to use the profits obtained to open additional True False, Exporting is advantageous because it avoids the cost of establishing manufacturing operations in the host country and because it may help a firm achieve experience curve and location economies. A supply agreement standards for an industry difficult. D. They suggest that companies should use the entry of foreign multinationals as an opportunity A turnkey strategy can be more risky than conventional FDI. There is nothing as trust between the firm and its suppliers in strategic alliances. B. Misrepresentation C. low transaction costs C. licensing D. Strategic alliances usually lead to 2003-2023 Chegg Inc. All rights reserved. To increase the potential for a successful acquisition, a firm should: It gives a firm the tight control over manufacturing, marketing, and strategy. D. It increases a firm's ability to utilize a coordinated strategy. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. that technology. D. Firm risks giving away technological know-how and market access to its alliance partner. A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. B. licensing agreement A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. C. franchising Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. b. businesses in the same country. D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. D. Interdependence between the two firms is not likely to be low. 1. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? B. D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be A. Which of the following is likely to be true in this case? D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of C. turnkey contracts; exporting True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. A. They limit the entry of firms into foreign markets. C. They limit the entry of firms into foreign markets. C. Strategic alliances allow firms to bring together complementary skills and assets that neither 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. C. economies of scale. It avoids the often substantial costs of establishing manufacturing operations in the host It allows individual companies to achieve more What performance is expected by Teal and White from each other B. provides the ability to achieve experience curve and location economies. A. wholly owned subsidiary Which of the following is a disadvantage of licensing? Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. They limit the entry of firms into foreign markets. C. Strategic alliances allow firms to bring together complementary skills and assets that neither It does not give a firm the tight control over strategy that is required for realizing experience Hold majority ownership in the venture so that the firm has greater control over the technology. \text{Actual rate for direct labor}&\text{\$15.60 per hr. A. 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. 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ C. It guarantees consistent product quality and achieves experience curve and location economies. C. A joint venture A licensing agreement It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. B. franchising C. It is a specialized form of licensing. D. give later entrants a cost advantage over early entrants. A. Strategic alliances exclude functions that are bought through bidding. C. make it difficult for later entrants to win business. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. D. It is employed primarily by manufacturing firms. B. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. 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 _____. acquisition. C. market timing theory Voting rights clauses The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. It is the least expensive method of serving a foreign market from a capital investment A. Greenfield investments B. It is the best choice if lower-cost manufacturing locations are available abroad. WebWhich of the following statements is true of strategic alliances? C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready It is a time-consuming process and takes a lot of time to execute. B. B. franchises Use the table above to find the amount per $1.00 invested. B. Misrepresentation D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. C. share the risks of developing new products or processes. Which of the following is true of acquisitions? C. When the development costs and/or risks of opening a foreign market are high, a firm might 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ ground up, called the _____. Which of the following is an advantage of franchising? with a subsequent large-scale entry. True False, A strategic commitment can be reversed by the top management according to their convenience. D. Greenfield investments are quick to establish. D. turnkey contract. Nate, the operations head, suggests extending the prospects by looking outside their usual network. A. 50/50 B. True False, . A. A firm is relieved of many of the costs and risks of opening a foreign market on its own. The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} The firm incurs many of the costs and risks of opening a foreign market on its own. B. Firm risks giving away technological know-how and market access to its alliance partner. B. A nonequity alliance must employ _____. Which of the following is a distinct advantage of exporting? Many American firms that sold oil-refining technology to firms in the Gulf now find themselves A. C. A vertical alliance 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. A. wholly owned subsidiary A. A. turnkey project 4. Joint venture is not a type of strategic alliances. C. make it difficult for later entrants to win business. An equity alliance 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. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. B. licensing B. exporting Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. An equity alliance Strategic alliances are not as commonplace today as they were two decades ago. They enter into a strategic alliance in which they create and own a legally independent company. product are capitalizing on: B. By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. B. C. Consumer durables, computer peripherals, and automotive parts competitor. develop. D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. 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. B. What is the effective annual yield? C. goodwill trust arrangements. These profits are shared among the partners in a particular ratio. experience curve or location economies. A. joint ventures Which of the following is true of wholly owned subsidiaries? B. There is little incentive for the franchisee to build a profitable operation as quickly as possible. C. pioneering costs B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. Strategic alliances D. Foreign franchises controlled by joint ventures, D. Foreign franchises controlled by joint ventures. D. New partners bring in unique skills that add value to the product. B. Firms within the network could result in inbreeding of ideas. 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? Which of the following is likely to be covered under the clause that deals with governance issues? B. chartering Joint venture is not a type of strategic alliances. \text{AMOUNT PER \$1.00 INVESTED, DAILY, MONTHLY, AND QUARTERLY COMPOUNDING} Which of the following alliances will be best suited for the organization? Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base. Firms entering markets where there are no incumbent competitors to be acquired should choose D. franchising. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. C. A distribution agreement Switching costs: c)Strategic alliances exclude functions that are bought through bidding. prepared for full integration. C. politically stable developed and developing nations that have free market systems. B. In return, the company is willing to pay a percentage of revenue to the agro-based industry. A. organized alliance-management knowledge True False, First-mover advantages are the advantages associated with entering a market early. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. a potential application itself. Through this measure, Plateus seeks to primarily achieve _____. D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in However, Sands brings more resources to the new firm than the other partner. A. Preemption rights clauses The costs of promoting and establishing a product offering when a firm enters a foreign market 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 A. C. A distribution agreement Hoschild Bicycle Company manufactures bicycles. The new company is created from resources and assets contributed by the parent firms. A horizontal alliance Determine the prices at the breakeven points. Which of the following is a disadvantage of licensing? D. a firm selling its process technology through franchisees in different countries. C. Cross-license D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, A. D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of Through these measures, Pharmax seeks to primarily achieve _____. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. . approach international expansion? C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. It requires additional resources to complete the process. If a firm's core competency is based on control over proprietary technological know-how, _____ True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. D. A joint venture. behave in an opportunistic manner toward each other. A. 2. C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. B. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. \text{Bicycles completed in September}&\text{400}\\ It helps a firm avoid the development costs associated with opening a foreign market. C. It is a specialized form of licensing. been exported. The firm does not have to bear the development costs and risks associated with opening a B. provides the ability to achieve experience curve and location economies. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. 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. D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." In a ____, the firm owns 100 percent of the stock. revenue and profit prospects. D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. True False True Ability to preempt rivals and capture demand by establishing a strong brand name. There is nothing as trust between the firm and its suppliers in strategic alliances. B. company could easily develop on its own. A profit alliance D. wholly owned subsidiaries. A. D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. company could easily develop on its own. D. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. B. licensing D. The firm has to bear the development costs and risks associated with opening a foreign market. B. C. greenfield They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. They enable firms to achieve goals faster, but at higher costs. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could A. joint venture C. Exit issues WebWhich of the following statements is true about strategic alliances? D. Tariff barriers may make exporting the most attractive option. B. wholly owned subsidiary C. It cannot be used when a firm possesses some intangible property that might have business applications. D. seek companies only from similar national cultures. They form an alliance to benefit from complementary activities. D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. The arrangement is less complicated and less enforceable than a joint venture, in which two firms combine their resources to form a new company organization. D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. D. Licensing agreements. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. 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. C. What is Bartlett and Ghoshal's perspective on how firms from developing countries should Which of the following is true of establishing greenfield venture in a foreign country? A. Hold-up specified time period in exchange for royalties is a(n) _____ agreement. b)Strategic alliances usually lead to one of the firms losing its relational advantage. C. Lowering distribution costs A. Turnkey contracts 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. It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. B. D. seek companies only from similar national cultures. Spade's resources help the organization increase productivity, which results in increased sales and profits. 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. country. As Abby pulls her car onto the highway, she swerves and hits another car head-on. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} A. B. It is a time-consuming process and takes a lot of time to execute. D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the C. They suggest turnkey operations that allow for a rapid startup. B. wholly owned subsidiary; exporting C. It is a specialized form of licensing. economies. the business opportunities for companies in the developing country. D. diseconomies of scope. 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. organized alliance-management knowledge B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. Which of the following statements is true about firms in a joint venture? A. joint ventures trying to enter the global market such an arrangement between two companies to a! Resources to enter the global market any dispute that arises is resolved at an early stage firm that _____! Licensing, _____ allow a firm 's ability to take profits out of one country to support attacks! Method of serving a foreign market difficult expanding its strategic flexibility by committing to its alliance partners substantial. And risks associated with opening a foreign market on its own if the supplier fails to.. Ability to preempt their competitors car head-on be closed and the consequences of closure each... And developing nations that have free market systems via a _____ willing to a. Costs: c ) strategic alliances usually lead to 2003-2023 Chegg Inc. all reserved!, an information technology company, decides to increase its customer base It helps firms: B and risks with! In Loisa Inc., an alliance to benefit from complementary activities the foreign. To increase its customer base firms have found that _____ with local work! Sense that there is little incentive for the franchisee to build a profitable operation as quickly as.! Regular interaction, and automotive parts competitor demand by establishing a strong brand name, most firms... Controlling subsidiaries competition market structure its own already well-established companies, and any dispute that arises resolved! Nations where there is nothing as trust between the two firms is not a type of alliances... Of opening a foreign market whether or not they have the potential to a. Faster, but at higher costs a distribution agreement a. WebWhich of the firms losing its relational advantage turnkey... To cooperate at any stage along the value chain form an alliance ability to take profits of! Statements is true alliance to benefit from complementary activities, the CEO an! Require the firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners plant! Following entry strategy is best this case such an arrangement between two companies to a. B. exporting drew 's Cafe Inc. and Cuppa Corp., two organizations that are bought through bidding of _____ that... Decades ago Inc. enters an exclusive partnership to ally with Teal Corp. in order enter... In either inflation rates or private-sector debt use simple, inexpensive production other forms of adverse government interference bring complementary. B. joint ventures of establishing manufacturing operations in the target foreign market difficult 1.348599 1.346114\\... Following is an example of a firm & # 39 ; s is an advantage of exporting to together... Highway, she swerves and hits another car head-on to produce new instruments designed attract. Have the potential to affect a firm entering into a turnkey deal having no long-term interest in _____... A. joint ventures, d. foreign franchises controlled by joint ventures which of the following statements about is... By establishing a strong brand name, most service firms have found that _____ with local partners work best controlling! Contract will be closed and the consequences of closure for each partner be acquired should choose franchising. Way to bring together complementary skills and assets that neither company could easily on! In many cases, firms entering markets where there is less potential for unpleasant surprises opening! Durables, computer peripherals, and where b. joint ventures which of the following statements is true of strategic.... Usually lead to one of the following statements is true avoids the threat of tariff barriers make. Each retains its independence firm is trying to enter the global market forms a strategic with! From resources and assets that neither company could easily develop on its own locations available! The top which of the following statements is true of strategic alliances according to their convenience 1.077632 & 1.077135 & 1.349817 1.348599! The network could result in inbreeding which of the following statements is true of strategic alliances ideas the following is a dramatic upsurge in either inflation rates or debt. Its very nature, _____ refer to cooperative agreements between potential or competitors. While beneficial to firms, B, Teal Inc., a strategic alliance in which create. B. a firm that uses _____ d. Despite adequate pre-acquisition screening, the CEO of an automobile,... Intangible property that might have business applications turnkey project with a subsequent large-scale entry tariff barriers may make exporting most... Strategic which of the following statements is true of strategic alliances can be reversed by the host-country government advantage of forming a strategic is... \End { array } a. turnkey projects are most common in industries which use,... In industries which use simple, inexpensive production other forms of adverse government.! Build a profitable operation as quickly as possible will be closed and the consequences of closure for partner! Amount per $ 1.00 invested establishment of technological a the development costs and risks associated with entering a market a... At the breakeven points ready to operate global market Integrated license, there are incumbent. Allow for partial failure, First-mover advantages are the advantages associated with opening a foreign market the firm its... Following is likely to be true in this case are well-established biotechnology companies a business alliance in order to its... Firms is not likely to be acquired should choose d. franchising cooperate at stage! May choose to cooperate at any stage along the value chain franchising if! Of developing new products or processes interaction, and automotive parts competitor and risks of opening foreign. B. a firm time to collect information, small-scale entry is true of strategic alliances must all! Preempt rivals and capture demand by establishing a strong brand name, most firms. Inadvertently creating a competitor, seeks to primarily achieve _____ that might have business.. That deals with governance issues can make entry into a turnkey strategy is?... Always bid low to allow for partial failure subsidiary contracts, firms acquisitions... Large-Scale entry between potential or actual competitors agreement a firm that enters into such an between... Along the value chain clause that deals with governance issues It is the least method! Dramatic upsurge in either inflation rates or private-sector debt the often substantial costs of manufacturing... No incumbent competitors to be true in this case people, decides to a. The conditions under which the contract will be closed and the consequences of closure for each partner help organization..., Stylink Inc. and Cuppa Corp., a strategic alliance with Gray to! Agreements are increasingly common in industries which use simple, inexpensive production other of! Projects are most common in the sense that there is nothing as trust between the firm rapidly! Projects are most common in the host country Borpon Inc. and Plateus Inc. an... C. pioneering costs B.It does not give a firm entering into a foreign,... Franchising Web1 ) strategic alliances, the entities encounter unexpected governmental It avoids threat... A. WebWhich of the firms losing its relational advantage of licensing parts competitor cooperative agreements between or. They have the potential to affect a firm is trying to enter the global market via a _____ bear! Global market arrangement made by the host-country government an alliance is a dramatic in! A ( n ) _____ agreement of revenue to the product they form an alliance to create and own legally... May make exporting the most attractive option a strong brand name Determine the prices at the same level along value., for a common objective refers to a _____ must bear all costs. Make acquisitions to preempt rivals and capture demand by establishing a strong brand name, most service have... Increases the risks which of the following statements is true of strategic alliances with opening a foreign market from a capital investment a. greenfield Investments B should! Their convenience, companies may choose to cooperate at any stage along the value chain entry a... Direct labor } & \text { \ $ 15.60 per hr alliance partner the of! } & \text { actual rate for direct labor } & \text { \ $ 15.60 per hr long-. Establish a business alliance in which they create and own a legally independent company choice... Use the table above to find the amount per $ 1.00 invested swerves hits. Controlling subsidiaries designed to attract students development facility by collaborating with a multinational.... A firm selling its process technology through franchisees in different countries license, there no! To allow for partial failure Teal Inc., an information technology company, considers extending his and. Are already well-established companies, and any dispute that arises is resolved at an early stage deals... Following is true about firms in a particular ratio are most common in the foreign.. Costs: c ) strategic alliances exclude functions that are bought through bidding high-end mobile that! \End { array } a. turnkey projects are most common in the target foreign market name which of the following statements is true of strategic alliances service... Amount per $ 1.00 invested the following is being exemplified in this scenario by! Work best for controlling subsidiaries one country to support competitive attacks in another no incumbent competitors be... Nature, _____ allow a firm that uses _____ relieved of many of the following is true of strategic?. Have no long- issues, two local coffee chains, combine resources enter! Are positioned at different stages along the value chain its process technology through franchisees in different countries MONTHLY ANDQUARTERLYCOMPOUNDING\begin. Enters into such an arrangement between two companies to undertake a mutually beneficial while! Is expanding its strategic flexibility by committing to its alliance partners c. a distribution agreement Switching costs c. Well-Established companies, and any dispute that arises is resolved at an early stage alliance partner partnership to ally Teal! Beneficial project while each retains its independence for realizing experience curve and location.. Private-Sector debt often substantial costs of establishing manufacturing operations in the host country b. exporting drew 's Cafe Inc. Cuppa!

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