A. organized alliance-management knowledge B. the firm wants 100 percent of the profits generated in a foreign market. A. Turnkey projects are most common in industries which use simple, inexpensive production An equity alliance Which of the following is exemplified in this scenario? A turnkey strategy can be more risky than conventional FDI. True False True InterestPeriod-1yearInterestPeriod-4years, AnnualRateDailyMonthlyQuarterlyDailyMonthlyQuarterly7.00%1.0725001.0722901.0718591.3230941.3220531.3199297.25%1.0751851.0749581.0744951.3363891.3352611.3329617.50%1.0778751.0776321.0771351.3498171.3485991.3461147.75%1.0805731.0803121.0797811.3633801.3620661.3593888.00%1.0832771.0829991.0824321.3770791.3756661.3727858.25%1.0859881.0856921.0850871.3909161.3893981.3863068.50%1.0887061.0883901.0877471.4048911.4032641.3999518.75%1.0914301.0910951.0904131.4190081.4172661.4137239.00%1.0941621.0938061.0930831.4332651.4314051.4276219.25%1.0969001.0965241.0957581.4476661.4456821.441647\begin{array}{c c c c c c c} True False, Firms entering a market via a wholly owned subsidiary must bear all the costs and risks associated with the venture. C. pioneering costs firms. C. Subsidiaries 1. strategic alliance. C. By giving a firm time to collect information, small-scale entry increases the risks associated D. It is employed primarily by manufacturing firms. Which of the following is true of strategic alliances? C. screen the foreign enterprise to be acquired. D. New partners bring in unique skills that add value to the product. A. minimizes exchange rate risks. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. D. Interdependence between the two firms is not likely to be low. Which of the following strategic alliances is adopted by Borpon and Biocolog? arrangements. He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. C. When the development costs and/or risks of opening a foreign market are high, a firm might Which category of issues does the second clause address? B. It is the least expensive method of serving a foreign market from a capital investment standpoint. 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ firms. 4) A company that. C. licensing C. shared equity In strategic alliances, companies may choose to cooperate at any stage along the value chain. It helps a firm avoid the development costs associated with opening a foreign market. gain by sharing these costs and or risks with a local partner. 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ b)Strategic alliances usually lead to one of the firms losing its relational advantage. A. joint venture True False, An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. C. franchising Which of the following is an advantage of franchising? B. d)In strategic. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. A. D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is True False, Brand names are generally well-protected by international laws pertaining to trademarks. C. They limit the entry of firms into foreign markets. A. first-mover advantages. A supply agreement D. turnkey contract. An alliance is likely to rely most on relationships between individuals when it is based on _____. Which of the following is a distinct advantage of exporting? B. Which of the following statements is true of strategic alliances? B. It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. Voting rights clauses systems. Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. D. increase the cultural similarities between employees. C. economies of scale. Franchising A. B. C. A distribution agreement Which of the following is the primary value they aim to create through this alliance? C. faces less trade barriers. 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. C. a country subsequently proving to be a major market for the output of the process that has been exported. with a subsequent large-scale entry. C. It cannot be used when a firm possesses some intangible property that might have business applications. C. greenfield investment Alliance partnerships What is the primary advantage of licensing? B. Black Corp., which prints Hues logo on the air conditioners B. Prepare a written outline of the points of your presentation. B. C. It is a specialized form of licensing. It tends to involve more short-term commitments than licensing. D. Strategic alliances usually lead to D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. C . They enable firms to achieve goals faster, but at higher costs. B. greenfield investment Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. C. It is required if a firm is trying to realize location and experience curve economies. D. The dependency level between partners is low. 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. prepared for full integration. C. joint venture WebQuestion: Which of the following statements is true about strategic alliances? C. Lowering the transaction costs at all stages of the value chain Firms within the network could result in inbreeding of ideas. C. low transaction costs A. licensing; joint-venture None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. foreign market. B. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. Chemical, pharmaceutical, and metal refining. Joint management A. C. It is required if a firm is trying to realize location and experience curve economies. 3. The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. D. late-mover advantages. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. B. A. C. Bondage WebWhich of the following is true of strategic alliances? 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. Zeal Inc., a software firm, decides to enter the publishing industry. C. Ability to capitalize on the work done by other firms A. alliance None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner WebWhich of the following is true of strategic alliances? D. wholly owned subsidiaries. C. They suggest turnkey operations that allow for a rapid startup. A. Turnkey C. It guarantees consistent product quality. \text{Quantity of direct labor used}&\text{850 hrs. B. D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of Licensing is used when a firm possesses some tangible property but does not want to pursue There is a clash between the cultures of the acquired and the acquiring firms. B. joint ventures Franchising; licensing C. Franchising; exporting D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it must employ _____. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. They are always focused on joining the same value chain activities. A supply agreement A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. B. It tends to involve more short-term commitments than licensing. D. shared ownership, _____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. C. goodwill trust 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 _____. B. C. the firm wants a plant that is ready to operate. C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor As Abby pulls her car onto the highway, she swerves and hits another car head-on. D. Despite adequate pre-acquisition screening, the entities encounter unexpected governmental It does not give a firm the tight control over strategy that is required for realizing experience D. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. D. give later entrants a cost advantage over early entrants. A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. 60/40 B. licensing 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. Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: C . A horizontal alliance The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. The editor has asked you to show her writers a software feature that will make their job easier. A. top management staff Acquisitions WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? 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 Give your reasons. Present the feature in steps that your audience can follow easily. D. Creation of innovative products at lower costs than other firms, B. D. Foreign franchises controlled by joint ventures, D. Foreign franchises controlled by joint ventures. A. to share the cost and risk of developing a foreign market. D. venture capital, A _____ entails establishing a firm that is owned together by two or more otherwise independent D. Firm risks giving away technological know-how and market access to its alliance partner. whether to enter on a significant scale. A. \text{Standard direct labor per bicycle}&\text{2 hrs. How much direct labor should be debited to Work in Process? 100 percent of the profits generated in a foreign market. A. organized alliance-management knowledge curve and location economies. B. Misrepresentation C. Takeovers C. joint-venture standards for an industry difficult. A. 50/50 B. A. D. Hold minority ownership in the venture so that the firm does not have to give over control of the C. A distribution agreement A. Which of the following suppliers is it most likely to choose as a partner? country. B.Joint ventures give a firm a tight control over subsidiaries that it might need to realize experience curve or location economies. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. The firm incurs many of the costs and risks of opening a foreign market on its own. A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. Firm risks giving away technological know-how and market access to its alliance partner. A firm is relieved of many of the costs and risks of opening a foreign market on its own. B. B. turnkey contracts. D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. B. country. D. They suggest that companies should use the entry of foreign multinationals as an opportunity C. politically stable developed and developing nations that have free market systems. Licensing agreements A selling alliance They limit the entry of firms into foreign markets. True False, Franchising enables a firm to quickly build a global presence. B. A. relational capital B. relational assets C. operational assets D. venture capital. C. It guarantees consistent product quality and achieves experience curve and location D. seek companies only from similar national cultures. B. 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. C. share the risks of developing new products or processes. C. make it difficult for later entrants to win business. D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. foreign market. When an exporting firm finds that its local agent is also carrying competitors' products, the firm Strategic alliances bring together complementary skills and assets from each partner. In a(n) _____, the contractor agrees to handle every detail of the project for a foreign client. Managing an alliance successfully requires building interpersonal relationships between the firms' managers. Small-scale entry is a way to gather information about a foreign market before deciding 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. Strategic alliances Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of Which of the following is a disadvantage of licensing? D. It is an attractive option for firms that have the capital to open overseas markets. Strategic alliances can make entry into a foreign market difficult. applications. C. acquisitions. 1. country. Residual rights clauses C. make it difficult for later entrants to win business. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. A. Licensing; franchising B. A. Hold-up D. Firm risks giving away technological know-how and market access to its alliance partner. C. Strategic alliances allow firms to bring together complementary skills and assets that neither 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ B. the business opportunities for companies in the developing country. D. In many cases, firms make acquisitions to preempt their competitors. B. increased external visibility 3. C. a horizontal alliance D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the Managing an alliance successfully requires building interpersonal relationships between the firms' Many American firms that sold oil-refining technology to firms in the Gulf now find themselves The costs of promoting and establishing a product offering when a firm enters a foreign market AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} to commit substantial resources to a foreign market. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. C. Franchising may inhibit the firm's ability to use the profits obtained to open additional It gives a firm the tight control over manufacturing, marketing, and strategy. It gives a firm the tight control over manufacturing, marketing, and strategy. The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. They form an alliance to benefit from complementary activities. 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? A. Hold-up B. licensing Joint venture is not a type of strategic alliances. Ability to preempt rivals and capture demand by establishing a strong brand name Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. D. It is particularly useful where FDI is limited by host-government regulations. C. They limit the entry of firms into foreign markets. must employ _____. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. 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