7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ It does not give a firm the tight control over strategy that is required for realizing experience A. Voting rights clauses An equity alliance Stefan, another friend, leaves with Abby to get a ride home. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. D. Greenfield investments are quick to establish. A contractual alliance D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. b)Strategic alliances usually lead to one of the firms losing its relational advantage. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. country. Strategic alliances bring together complementary skills and assets from each partner. B. Licensing agreements C. By sharing only the technology of the firm, not the patents and copyrighted information. B. d)In strategic. B. arrangements. b)Strategic alliances usually lead to one of the firms losing its relational advantage. A . B. 4. Which of the following is one of 2. A. C. joint ventures C. Bondage C. Under which circumstances Teal or White can exit the alliance C. They limit the entry of firms into foreign markets. C. It helps a firm achieve experience curve and location economies. The commitment associated with a small-scale entry makes it possible for the small-scale Small-scale entry is a way to gather information about a foreign market before deciding It helps a firm avoid the development costs associated with opening a foreign market. D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. D. wholly owned subsidiaries. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} A. to share the cost and risk of developing a foreign market. B. D. They suggest that companies should use the entry of foreign multinationals as an opportunity B. licensing agreement B. Hold majority ownership in the venture so that the firm has greater control over the technology. Franchising; licensing True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. entrant to capture first-mover advantages. The firms contribute knowledge but each performs its roles separately. Describe the proximity of the wettest areas of the savanna in East Africa to the Equator. _____. Which of the following statements strengthens Sanah's argument? B. C. make it difficult for later entrants to win business. D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the A. C. Structured transfer agreements WebWhich of the following statements is true about strategic alliances with suppliers? These profits are shared among the partners in a particular ratio. Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. In order to accommodate these factors, they decide to start a legally independent firm. D. It is particularly useful where FDI is limited by host-government regulations. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. McDonald's is an example of a firm that uses _____. Which of the following is being exemplified in this case? A. Turnkey Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. D. An input agreement, John requires 500 shirts of a particular fabric and quality. C. politically stable developed and developing nations that have free market systems. C. Strategic alliances True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. . AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} B. Managing an alliance successfully requires building interpersonal relationships between the firms' managers. B. 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. B. The fixed costs and associated risks of developing new products or processes are borne by standards for an industry difficult. B. strategic alliance. They suggest joint ventures to improve the firm's presence in the country while also growing It allows individual companies to achieve more A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. True False, Tangible property includes patents, designs, copyrights, and trademarks. B. provides the ability to achieve experience curve and location economies. Which of the following is true of acquisitions? A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? C. Give your reasons. the business opportunities for companies in the developing country. C. It is a specialized form of licensing. D. reputation, J.L. The firm does not have to bear the development costs and risks associated with opening a 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. A. turnkey c)Strategic alliances exclude functions that are bought through bidding. A. transportation Joint venture is not a type of strategic alliances. Which of the following is true of exporting? A. Strategic alliances usually lead to one of the firms losing their relational advantage. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. An advantage of exporting products to another country is that it: economies. In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. A. exporting A. always bid low to allow for partial failure. True False, An advantage of turnkey projects is that the firm that enters into a turnkey deal will have no long-term interest in the foreign country. A. alliance 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. As Abby pulls her car onto the highway, she swerves and hits another car head-on. B. B. Which category of issues does the second clause address? D. It is employed primarily by manufacturing firms. An organization wants to form a strategic alliance with another firm. To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves competing with these firms in the world oil market. C. 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. shared equity A. joint ventures WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. curve and location economies. D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. Which of the following suppliers is it most likely to choose as a partner? Alliance partnerships A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. language, etc. D. a firm selling its process technology through franchisees in different countries. Is it fair to hold Lance responsible in either situation? True False True It guarantees consistent product quality. C. It is a specialized form of licensing. D. Despite adequate pre-acquisition screening, the entities encounter unexpected governmental may switch to a _____ to handle local marketing, sales, and service. technology. \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ An equity alliance WebStrategic alliances refer to cooperative agreements between potential or actual competitors. A firm is relieved of many of the costs and risks of opening a foreign market on its own. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. Combining unique skills easily develop on its own. B. A. Greenfield investments WebB. Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: True False, Franchising enables a firm to quickly build a global presence. 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. 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. A. Greenfield investments are less risky than acquiring an existing company in a foreign market. D. diseconomies of scope. 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 _____. \end{array} WebWhich of the following statements is true of strategic alliances? A. B. B. Which of the following is being exemplified in this case? C. Cross-license C. It avoids the often substantial costs of establishing manufacturing operations in the host If a firm can realize location economies by moving production elsewhere, it should avoid _____. Firms within the network prevent against opportunism. How intellectual property will be shared by Teal and White Joint ventures Which of the following is likely to be the primary value created by this alliance? True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. A. C. a country subsequently proving to be a major market for the output of the process that has D. seek companies only from similar national cultures. C. It helps a firm achieve experience curve and location economies. C. operational assets A. B. B. chartering Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. A. franchise C. Franchising; exporting By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. the alliance partner. B. A. switching costs C. joint-venture C. economies of scale. Through this measure, Plateus seeks to primarily achieve _____. The costs of promoting and establishing a product offering when a firm enters a foreign market Identify the firm that is using an arm's-length relationship to establish a strategic alliance. Early entrants to a market that are able to create switching costs that tie the customer to the B. make it easy for later entrants to win business. It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. b. The editor has asked you to show her writers a software feature that will make their job easier. They limit the entry of firms into foreign markets. C. goodwill trust Which of the following is being exemplified in this case? A. joint venture D. venture capital, A _____ entails establishing a firm that is owned together by two or more otherwise independent D. . A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. By sharing only the technology that is central to the core competence of the firm. C. A vertical alliance B. Misrepresentation d)In strategic. True False, . _____ refer to cooperative agreements between potential or actual competitors. C. Bondage Which of the following statements about franchising is true? B. franchising arrangement B. B. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. Small-scale entry is a way to gather information about a foreign market before deciding A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. B. In a _____, the firm owns 100 percent of the stock. B. C. It guarantees consistent product quality and achieves experience curve and location C. A distribution agreement D. Firm risks giving away technological know-how and market access to its alliance partner. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. Costs that an early entrant has to bear that a later entrant can avoid are known as _____. D. give later entrants a cost advantage over early entrants. What performance is expected by Teal and White from each other C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. An equity alliance Activity Plan and demonstrate how to use the feature. Which of the following statements is true about firms that establish strategic alliances? B. D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. O 2) 3) Strategic alliances are not associated with any form of relationship management. It allows individual companies to achieve more They suggest that franchising should be used in order to minimize risk and allow for the A. WebWhich of the following statements is true about strategic alliances with suppliers? B. turnkey strategy It helps a firm avoid the development costs associated with opening a foreign market. It tends to involve more short-term commitments than licensing. Which of the following statements about small-scale entry is true? D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. They are a way to bring together complementary skills and assets that both companies WebWhich of the following statements is true of strategic alliances? A. Modularization C. Subsidiaries 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. B.Joint ventures give a firm a tight control over subsidiaries that it might need to realize experience curve or location economies. B. increased external visibility C. intervention and accountability When an exporting firm finds that its local agent is also carrying competitors' products, the firm C. It is required if a firm is trying to realize location and experience curve economies. C . D. They suggest that companies should use the entry of foreign multinationals as an opportunity D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is B. Pooling similar resources A licensing agreement advantages associated with _____. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. Fresh fruit, grain, and meat products True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. A. scale economies A. protect their procedures and technologies. A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up, called the _____. A. A. organized alliance-management knowledge applications. This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. A. chartering B. It is the best choice if lower-cost manufacturing locations are available abroad. SeaShade produces beach umbrellas. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. C. share the risks of developing new products or processes. 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 _____. B. increased external visibility He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. It avoids the often substantial costs of establishing manufacturing operations in the host A. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. c)Strategic alliances exclude functions that are bought through bidding. Which of the following is an advantage of establishing a joint venture? C. franchising A firm is relieved of many of the costs and risks of opening a foreign market on its own. Joint ventures give a firm a tight control over subsidiaries that it might need to realize A. first-mover advantages. A turnkey strategy can be more risky than conventional FDI. _____ are the advantages associated with entering a market early. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. A. Strategic alliances can make entry into a foreign market difficult. D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. C. licensing agreement True False True The contributions made by individual firms are easy to measure. How much direct labor should be debited to Work in Process? Which of the following alliances will be best suited for the organization? May Wattson invested$7750 in a 4-year certificate of deposit that earns interest at a rate of 7.75% compounded monthly. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} D. In many cases, firms make acquisitions to preempt their competitors. D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. True False, Acquisitions rarely produce disappointing results. 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. 50/50 B. B. B. A. B. 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. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. Which of the following statements about franchising is true? Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. 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. the host country's competitive conditions, culture, language, political systems, and business In the second clause, they specify how intellectual property will be shared and protected. _____. D. turnkey contract. Which of the following is true of wholly owned subsidiaries? Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. To convince another pharmaceutical company to provide the necessary resources, it gives false information about how long the drug has been in the developmental pipeline and the guidelines followed in the production process. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. True False, Firms entering a market via a wholly owned subsidiary must bear all the costs and risks associated with the venture. They enable firms to achieve goals faster, but at higher costs. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. WebWhich of the following statements is true of strategic alliances? He partners with Loumang Inc., a fabric manufacturing company, to develop certain customized inputs. In return, the company is willing to pay a percentage of revenue to the agro-based industry. B. D. to test a market. C. wholly owned subsidiaries d)In strategic. D. Strategic alliances usually lead to been exported. They are a way to bring together complementary skills and assets that both companies develop. C. share the risks of developing new products or processes. A. B. increased external visibility 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. intangible property prior to its rivals are known as _____. Answer questions from your audience about the feature and how to use it. B. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. A firm takes profits out of one country to support competitive attacks in another. D. Apparel, shoes, and leather products, B. C. Takeovers In this case, which of the following contractual alliances should be adopted by Sepia? The manager of research and development, Sanah, is willing to form an alliance only with individuals she has known for a long time or a company within Pearltech's business network. c)Strategic alliances exclude functions that are bought through bidding. Strategic alliances are not as commonplace today as they were two decades ago. Which of the following is the primary value they aim to create through this alliance? A profit alliance True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. Acquisitions Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. A. B. joint ventures A. a joint venture 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. 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. \text{Bicycles completed in September}&\text{400}\\ The firm does not have to bear the development costs and risks associated with opening a True False, Large strategic commitments increase strategic flexibility. D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it 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. There is little incentive for the franchisee to build a profitable operation as quickly as possible. True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. A firm takes profits out of one country to support competitive attacks in another. A. Hold-up D. Creation of innovative products at lower costs than other firms, B. Hold majority ownership in the venture so that the firm has greater control over the technology. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . The parent organizations create a legally independent firm. D. New partners bring in unique skills that add value to the product. B. D. It increases a firm's ability to utilize a coordinated strategy. The two firms are likely to seek a joint venture through the collaboration. country. maximum expansion in the quickest amount of time. B. How can a firm protect its proprietary information in a joint venture arrangement? A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. managers. A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. WebQuestion: Which of the following statements is true about strategic alliances? D. tangible property. B. True False, Educating customers is a part of pioneering costs. A. D. wholly owned subsidiaries. It does not help firms that lack capital to develop operations overseas. A. D. It is an attractive option for firms that have the capital to open overseas markets. Which of the following is exemplified in this scenario? A. turnkey contracts B. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Strategic alliances exclude functions that are bought through bidding. involvement. It helps a firm avoid the development costs associated with opening a foreign market. Determine the prices at the breakeven points. 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. Trust which of the following statements about small-scale entry is true of strategic?. 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