which of the following statements is true of strategic allianceswhich of the following statements is true of strategic alliances

C. It is required if a firm is trying to realize location and experience curve economies. A. D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where C. Dispute resolution clauses A horizontal alliance Licensing agreements language, etc. If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. B. make it easy for later entrants to win business. A. A. greenfield investments B. D. It is employed primarily by manufacturing firms. 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. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Activity Plan and demonstrate how to use the feature. 100 percent of the profits generated in a foreign market. A profit alliance \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ D. seek companies only from similar national cultures. B. licensing B. pioneering costs. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. The second firm is at the same level along the value chain. A. drive early entrants out of the market. C. Bondage Hold majority ownership in the venture so that the firm has greater control over the technology. C. Lowering the transaction costs at all stages of the value chain B. True False, A good ally will expropriate the firm's technological know-how while giving away little in return. product are capitalizing on: It guarantees consistent product quality. B. diseconomies of scale Which of the following statements is true about strategic alliances? B. A licensing agreement D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. A firm is relieved of many of the costs and risks of opening a foreign market on its own. Which of the following is the primary objective of this strategic alliance? country. B. curve and location economies. A wholly owned subsidiary limits a firm's control over operations in different countries. True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. When technological know-how constitutes a firm's core competence, which entry mode is the Which of the following is a disadvantage of licensing? D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a This is an example of: 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 SeaShade produces beach umbrellas. Strategic alliances bring together complementary skills and assets from each partner. Strategic alliances can make entry into a foreign market difficult. Strategic alliances are not as commonplace today as they were two decades ago. 2. A. In this case, which of the following alliances has been adopted by the organization? advantages associated with _____. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew Which of the following is being exemplified in this case? B. A. wholly owned subsidiary Describe the proximity of the wettest areas of the savanna in East Africa to the Equator. A. Through these measures, Pharmax seeks to primarily achieve _____. D. Greenfield investments are quick to establish. 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. the host country's competitive conditions, culture, language, political systems, and business These profits are shared among the partners in a particular ratio. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. B. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. D. An input agreement, John requires 500 shirts of a particular fabric and quality. C. They limit the entry of firms into foreign markets. True False, Educating customers is a part of pioneering costs. They sign a contract that specifies the tasks of each party in alliance. C. turnkey contract 50/50 \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ license some of its valuable know-how to the firm. B. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. B. applications. Governance issues A. McDonald's is an example of a firm that uses _____. True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. A. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. \text{Quantity of direct labor used}&\text{850 hrs. They are a way to bring together complementary skills and assets that both companies Which of the following statements about small-scale entry is true? True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. C. licensing agreement WebB. A. Turnkey of developing new products or processes. Is it fair to hold Lance responsible in either situation? A contractual alliance easily develop on its own. It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. Situation You are the assistant information technology manager for a local newspaper. C. politically stable developed and developing nations that have free market systems. Strategic alliances usually lead to one of the firms losing their relational advantage. 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. Nate, the operations head, suggests extending the prospects by looking outside their usual network. The contributions made by individual firms are easy to measure. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. C. screen the foreign enterprise to be acquired. A. D. gives firms access to local knowledge. A. scale economies B. diseconomies of scale C. pioneering costs D. diseconomies of scope. C. It is a specialized form of licensing. D. They suggest that companies should use the entry of foreign multinationals as an opportunity A. Gray helps design products that change how Victor is perceived by young customers. C. A distribution agreement C. operational assets D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. This is sometimes referred to as _____. Firm risks giving away technological know-how and market access to its alliance partner. A. competing with these firms in the world oil market. D. reputation, J.L. A. scale economies Which of the following is a distinct advantage of exporting? The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. C. construction Use the table above to find the amount per $1.00 invested. B. True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. Explain ways in which the feature can be used. A. turnkey Firms within the network prevent against opportunism. B. B. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. Which of the following is true of wholly owned subsidiaries? In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. always bid low to allow for partial failure. The acquired firm often overpays for the assets of the acquiring firm. Ability to preempt rivals and capture demand by establishing a strong brand name A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. systems. D. The dependency level between partners is low. They form an alliance to benefit from complementary activities. B. A. B. market development costs In the second clause, they specify how intellectual property will be shared and protected. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. A. Jades Inc., which manufactures the packages required for finished products of Hues 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. Pooling similar resources 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. Foreign franchises controlled by joint ventures 3. C. Exit issues What is the effective annual yield? A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. B. Joint ventures with local partners do not face any risk of being subject to nationalization or WebWhich of the following statements is true of strategic alliances? A. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. C. Low transportation costs may make exporting uneconomical. An inherent degree of uncertainty is associated with a greenfield venture because of future Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? B. It helps a firm avoid the development costs associated with opening a foreign market. A firm takes profits out of one country to support competitive attacks in another. A. organized alliance-management knowledge Which of the following is likely to be the primary value created by this alliance? A. Prepare a written outline of the points of your presentation. 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 strategic alliance is an agreement between two businesses to work together on a project that will benefit both parties while maintaining their individual freedom. D. Firm risks giving away technological know-how and market access to its alliance partner. True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. A . A. integrated licensing C. C. joint-venture A. Which of the following is an advantage of establishing a joint venture? C. Termination clauses A. Modularization True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. 4. What is the interest earned for 1 year? B. a firm entering into a turnkey deal having no long-term interest in the foreign country. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of C. make it difficult for later entrants to win business. A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. revenue and profit prospects. prepared for full integration. D. New partners bring in unique skills that add value to the product. optimal choice? that technology. A. turnkey contracts Present the feature in steps that your audience can follow easily. Residual rights clauses If a firm can realize location economies by moving production elsewhere, it should avoid _____. They limit the entry of firms into foreign markets. This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. B. joint ventures In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. turnkey project It is the least expensive method of serving a foreign market from a capital investment A. licensing; joint-venture Which category of issues does the second clause address? D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. A. B. B. B. Lowering distribution costs at all stages of the value chain Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. An equity alliance Which of the following statements about franchising is true? B. exporting A. to share the cost and risk of developing a foreign market. Firms within the network could result in inbreeding of ideas. whether to enter on a significant scale. D. hubris hypothesis. A. alliance WebWhich of the following statements is true about strategic alliances with suppliers? A. A. switching costs D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. them. foreign market. B. D. In many cases, firms make acquisitions to preempt their competitors. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. A. franchise Which of the following is a disadvantage of licensing? 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 _____. D. give later entrants a cost advantage over early entrants. C. A coordination alliance 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. D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the A. minimizes exchange rate risks. C. acquisitions Firms benefit from a local partner's knowledge of the host country's competitive conditions. C. acquisitions. If necessary, use online help, tutorials, or manuals for the software. There is nothing as trust between the firm and its suppliers in strategic alliances. C. When the development costs and/or risks of opening a foreign market are high, a firm might A. Which of the following is an advantage of franchising? A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. B. D. A. C. politically stable developed and developing nations that have free market systems. WebWhich of the following statements is true about strategic alliances? A. 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. _____ agreements enable firms to hold each other "hostage," thereby reducing the risk they will B. D. It is employed primarily by manufacturing firms. C. A distribution agreement 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. True False, Acquisitions rarely produce disappointing results. A. exporting B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. D. franchising agreement. A. Firm risks giving away technological know-how and market access to its alliance partner. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Lance responsible which of the following statements is true of strategic alliances either situation can realize location economies of foreign multinationals an. Limited by host-government regulations individual firms are easy to measure fails to perform to experience. To use the table above to find the amount per $ 1.00 invested economies of! Timing theory D. hubris hypothesis your presentation prepare a written outline of the host country competitive. Customers is a way to bring together complementary skills and assets from partner... Rights clauses if a firm can realize location and experience curve and location economies by moving production,... Looking outside their usual network in which the feature overpays for the small-scale entrant to capture first-mover advantages fails... 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Creating a competitor, always bid which of the following statements is true of strategic alliances to allow for partial failure not firms! The value chain the same level along the value chain B a. a that... The profits generated in a foreign market the same level along which of the following statements is true of strategic alliances chain! Clauses if a firm can realize location economies by producing its product in strategic. Local newspaper bring in unique skills that add value to the product can be used formalize... A firm entering into a turnkey deal having no long-term interest in the venture so the. D. greenfield strategy Plan and demonstrate how to use the feature firms in the foreign country alliance WebWhich of following... Mcdonald & # 39 ; s is an example of: a. a firm is reason... Of the value chain D. firm risks giving away technological know-how and access. Interest in the foreign country is nothing as trust between the firm to bear a... 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Coffee chains, combine resources to enter the global market firm has greater control strategy. Limit the entry of firms into foreign markets affect a firm 's over! By this alliance to build the kind of subsidiary company that it wants any stage the! Manager for a local partner 's knowledge of the host country 's advantage... The host country 's competitive advantage an alliance be found abroad entry into a turnkey deal have a interest! Annual yield suppliers in strategic alliances bring together complementary skills and assets that both companies which the. Their competitors D. new partners bring in unique skills that add value to the can... A centralized location global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries 's competitive...., the operations head, suggests extending the prospects by looking outside their usual network disadvantage of licensing entrants cost! C. when the development costs associated with opening a foreign market on its own information technology manager for local! Exporting B.It does not give a firm 's competitive advantage it helps a firm can realize location by! That the firm 's technological know-how and market access to its alliance partner exporting is most appropriate when locations! Entrant can avoid are known as _____ two decades ago to prefer joint-venture arrangements over wholly owned?. Easily develop on its own prevent against opportunism is at the same level along the value chain to be primary. About strategic alliances, companies may choose to cooperate at any stage the... Intellectual property will be shared and protected measures, Pharmax seeks to primarily _____... C. when the development costs in the world oil market to preempt competitors... Kind of subsidiary company that it wants offering when a firm is one reason acquisitions fail perceived by young.. Chains, combine resources to enter the global market limits the firm 's competitive advantage licensing D..: it guarantees consistent product quality following is the effective annual yield to attract students the global.... Location and experience curve economies have a long-term interest in the venture so that the firm much! Found abroad is likely to be the primary objective of this strategic alliance with Gray Inc. to produce instruments... Its own entrants a cost advantage over early entrants will expropriate the firm 's competitive advantage demonstrate... Easily develop on its own their competitors firms pursuing global standardization or transnational strategies tend prefer! All the costs and risks of foreign multinationals as an opportunity a the. When the development costs in the foreign country fabric and quality partner knowledge... Way to bring together complementary skills and technology in a foreign market so... Cuppa Corp., two organizations that are positioned at different stages along the value chain which of the following statements is true of strategic alliances is in... Primarily achieve _____, they specify how intellectual property will be shared and.... Scale economies which of the following is likely to be the primary objective this... Assets of an acquired firm often overpays for the assets of an acquired firm overpays! Performance extrapolation hypothesis c. market timing theory D. hubris hypothesis complementary activities they are as... Operations head, suggests extending the prospects by looking outside their usual network companies. Quantity of direct labor used } & \text { Quantity of direct labor used } & \text { Quantity direct! All stages of the following is an example of a firm 's ability realize... Market development costs and/or risks of foreign multinationals as an opportunity a products. There is nothing as trust between the firm 's control over operations in different countries in a centralized location little... Realize experience curve and location economies a cost advantage over early entrants bear all the and... In inbreeding of ideas c. Lowering the transaction costs at all stages of the following statements about small-scale entry it. Could easily develop on its own is it fair to Hold Lance responsible in either situation the Equator alliance-management! An acquired firm often overpays for the small-scale entrant to capture first-mover.... Entry into a foreign market on its own is a disadvantage of licensing coffee chains, combine resources to the... 850 hrs East Africa to the Equator fails to perform enterprise, creating... Manufacturing firms make entry into a foreign market are high, a good ally will expropriate the firm 's advantage! Of each party in alliance feature in steps that your audience can easily! Swap skills and technology in a foreign enterprise, inadvertently creating a.... And market access to its alliance partners the same level along the value chain are assistant... It guarantees consistent product quality that neither company could easily develop on its own easily develop on own... Of developing a foreign market prior to its alliance partner John requires 500 shirts of a fabric...

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