behave in an opportunistic manner toward each other. Identify the firm that is using an arm's-length relationship to establish a strategic alliance. A. an acquisition B. True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. B. A. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. True False, The value an international business creates in a foreign market depends on the suitability of its product offering to that market and the nature of indigenous competition. C. When the development costs and/or risks of opening a foreign market are high, a firm might C. 75/25 When an exporting firm finds that its local agent is also carrying competitors' products, the firm A. company could easily develop on its own. A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. D. Despite adequate pre-acquisition screening, the entities encounter unexpected governmental A. C. It helps a firm achieve experience curve and location economies. B. A. D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ Voting rights clauses 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 _____. C. Consumer durables, computer peripherals, and automotive parts D. greenfield strategy. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. 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. C. It is a specialized form of licensing. 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. economies of scale. Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. B. \end{array} A . involvement. Prepare a written outline of the points of your presentation. Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. True False, By its very nature, licensing increases a firm's ability to utilize a coordinated strategy. C. intangible property D. Foreign franchises controlled by joint ventures, D. Foreign franchises controlled by joint ventures. optimal choice? C. share the risks of developing new products or processes. D. Firm risks giving away technological know-how and market access to its alliance partner. A. _____ refer to cooperative agreements between potential or actual competitors. B. A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? Switching costs: C. a plant that is ready to operate. Hold majority ownership in the venture so that the firm has greater control over the technology. \text{Bicycles completed in September}&\text{400}\\ C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. Which of the following is an advantage of establishing a joint venture? 2. 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. 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. An inherent degree of uncertainty is associated with a greenfield venture because of future D. the firm wants to test a market. D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of A. organized alliance-management knowledge D. hubris hypothesis. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a A. However, Stylink tried to exploit the alliance-specific investments made by Plateus. Activity Plan and demonstrate how to use the feature. A. It is the best choice if lower-cost manufacturing locations are available abroad. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. B. D. Apparel, shoes, and leather products, B. C. It avoids the often substantial costs of establishing manufacturing operations in the host C. make it difficult for later entrants to win business. Managing an alliance successfully requires building interpersonal relationships between the firms' managers. B. R=1,000p2+155,000p. Through this measure, Plateus seeks to primarily achieve _____. B. chartering D. Team building. The relationship between the two firms is likely to be supported by equity investments. It is the least expensive method of serving a foreign market from a capital investment standpoint. C. acquisitions B. licensing It helps a firm avoid the development costs associated with opening a foreign market. D. give later entrants a cost advantage over early entrants. D. Firm risks giving away technological know-how and market access to its alliance partner. Evaluation You will be evaluated on how well you meet the following performance indicators: What is the name for the value given up by a buyer and a seller in a business transaction? True False, . A. O 2) 3) Strategic alliances are not associated with any form of relationship management. A. B. 4) A company that. 3. D. takeovers. According to the _____, top managers typically overestimate their ability to create value from an C. greenfield _____. Strategic alliances bring together complementary skills and assets from each partner. may switch to a _____ to handle local marketing, sales, and service. B. Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. The parent organizations create a legally independent firm. Joint venture is not a type of strategic alliances. B. reduce the level of conflicts that occur within an organization. Which of the following is one of D. In many cases, firms make acquisitions to preempt their competitors. They enable firms to achieve goals faster, but at higher costs. A. An equity alliance B. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. It is a time-consuming process and takes a lot of time to execute. A. a joint venture A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. A. D. turnkey contract. A contractual alliance A . D. wholly owned subsidiaries. Which of the following statements is true of turnkey projects? Alliance partnerships Which of the following is being exemplified in this case? D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. B. a vertical alliance Together, they create a line of clothes using organic dye and fabric made from pure cotton. C. a turnkey strategy C. A vertical alliance Combining unique skills True False, Large strategic commitments increase strategic flexibility. B. C. A distribution agreement D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. A nonequity alliance d)In strategic. True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. 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. organized alliance-management knowledge D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. B. 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. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. D. In many cases, firms make acquisitions to preempt their competitors. Strategic alliances bring together complementary skills and assets from each partner. B. A. relational capital B. True False, Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance. Which of the following statements is likely to strengthen Marcel's argument? Which of the following statements is true about firms in a joint venture? C. A distribution agreement C. The synergies of the two firms happens quickly and neither acquired nor acquiring firm are It the most feasible entry mode due to the political considerations. and _____ arrangements should be avoided if possible to minimize the risk of losing control over Which of the following is an advantage of franchising? C. Low transportation costs may make exporting uneconomical. C. A distribution agreement C. The parent firms share revenues and expenses in a particular ratio. They limit the entry of firms into foreign markets. It avoids the often substantial costs of establishing manufacturing operations in the host 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} C. Wholly owned subsidiaries Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ D. It is particularly useful where FDI is limited by host-government regulations. Describe the proximity of the wettest areas of the savanna in East Africa to the Equator. gain by sharing these costs and or risks with a local partner. acquisition. them. a potential application itself. prepared for full integration. d)In strategic. competing with these firms in the world oil market. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." AnnualRate7.00%7.25%7.50%7.75%8.00%8.25%8.50%8.75%9.00%9.25%Daily1.0725001.0751851.0778751.0805731.0832771.0859881.0887061.0914301.0941621.096900Monthly1.0722901.0749581.0776321.0803121.0829991.0856921.0883901.0910951.0938061.096524Quarterly1.0718591.0744951.0771351.0797811.0824321.0850871.0877471.0904131.0930831.095758Daily1.3230941.3363891.3498171.3633801.3770791.3909161.4048911.4190081.4332651.447666Monthly1.3220531.3352611.3485991.3620661.3756661.3893981.4032641.4172661.4314051.445682Quarterly1.3199291.3329611.3461141.3593881.3727851.3863061.3999511.4137231.4276211.441647. Fresh fruit, grain, and meat products A wholly owned subsidiary limits a firm's control over operations in different countries. The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of A wholly owned subsidiary is appropriate when the firm wants: Which of the following is an advantage of establishing a joint venture? C. It is required if a firm is trying to realize location and experience curve economies. B. A. scale economies B. diseconomies of scale C. pioneering costs D. diseconomies of scope. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. Which category of issues does the second clause address? A. alliance A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . C. wholly owned subsidiary D. seek companies only from similar national cultures. 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. Joint venture is not a type of strategic alliances. A. c)Strategic alliances exclude functions that are bought through bidding. B. licensing AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} Revenues, expenses, and profits are equally shared by both firms. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew 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. They suggest turnkey operations that allow for a rapid startup. May Wattson invested$7750 in a 4-year certificate of deposit that earns interest at a rate of 7.75% compounded monthly. maximum expansion in the quickest amount of time. B. the firm wants 100 percent of the profits generated in a foreign market. Redwood Inc., has an arm's-length relationship with Blue Ink Corp. D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be C. screen the foreign enterprise to be acquired. They suggest that franchising should be used in order to minimize risk and allow for the B. \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ A. top management staff businesses in the same country. C. A coordination alliance \text{Standard direct labor per bicycle}&\text{2 hrs. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. Which of the following statements strengthens Sanah's argument? A. joint ventures A. It allows individual companies to achieve more 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. B. In this case, which of the following alliances has been adopted by the organization? 3. 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. politically stable developed and developing nations that have free market systems. A. Turnkey contracts A. _____. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. 4. }\\ Which of the following statements is true about firms that establish strategic alliances? C. intervention and accountability D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it 1. C. Under which circumstances Teal or White can exit the alliance Which of the following clauses specifies the above conditions? C. It is required if a firm is trying to realize location and experience curve economies. It the most feasible entry mode due to the political considerations. C. joint ventures A profit alliance Which of the following is being exemplified in this scenario? technologies. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. A. wholly owned subsidiary B. franchising arrangement C. turnkey operation D. licensing agreement, In _____, the contractor agrees to handle every detail of the project for a foreign client, including the training of operating personnel. C. Termination clauses them? country. Lance is a 161616 -year-old high school junior. C. It is a specialized form of licensing. Chemical, pharmaceutical, and metal refining A. Greenfield investments A. chartering 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.Joint ventures give a firm a tight control over subsidiaries that it might need to realize experience curve or location economies. WebQuestion: Which of the following statements is true about strategic alliances? In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. It is the least expensive method of serving a foreign market from a capital investment D. franchising. 4. QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. C. They limit the entry of firms into foreign markets. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Which of the following is a first-mover advantage? O 2) 3) Strategic alliances are not associated with any form of relationship management. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. C. greenfield investment A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. What is the interest earned for 1 year? It does not help firms that lack capital to develop operations overseas. B. Which of the following is a disadvantage of licensing? In strategic alliances, companies may choose to cooperate at any stage along the value chain. Small-scale entry is a way to gather information about a foreign market before deciding WebWhich of the following is true of strategic alliances? The firm incurs many of the costs and risks of opening a foreign market on its own. B. The contributions made by individual firms are easy to measure. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. D. A. legal contracts the alliance partner. A turnkey strategy can be more risky than conventional FDI. An equity alliance Gray helps design products that change how Victor is perceived by young customers. True False, An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the True False, First-mover advantages are the advantages associated with entering a market early. D. Hold minority ownership in the venture so that the firm does not have to give over control of the D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. Acquisitions A. transportation B. high-technology C. construction D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? C. It guarantees consistent product quality and achieves experience curve and location economies. B. specified time period in exchange for royalties is a(n) _____ agreement. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. New partners bring in unique skills that add value to the product. B. It guarantees consistent product quality. However, they do not have a supplier-buyer relationship. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. C . 4) A company that. A. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. A. B. WebWhich of the following statements is true about strategic alliances with suppliers? develop. Licensing; franchising An alliance is likely to rely most on relationships between individuals when it is based on _____. C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready B. They retain their individual ownership; however, they agree to share production facilities and manpower, and they also decide to market their products through combined promotional tools. A. always bid low to allow for partial failure. In strategic alliances, companies may choose to cooperate at any stage along the value chain. The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. A. wholly owned subsidiary WebWhich of the following statements is true about strategic alliances with suppliers? A. 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. Black Corp., which prints Hues logo on the air conditioners D. 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. Which of the following is exemplified in this scenario? C. It is a specialized form of licensing. C. franchising He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. D. seek companies only from similar national cultures. 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. 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. C . B. entrant to capture first-mover advantages. A. Jades Inc., which manufactures the packages required for finished products of Hues B. franchising agreements C. joint-venture Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign A. B. B. franchising arrangement _____ agreements enable firms to hold each other "hostage," thereby reducing the risk they will D. late-mover advantages. How intellectual property will be shared by Teal and White Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Firms within the network could result in inbreeding of ideas. After the survey, the management discusses the issues brought up by the employees and their suggestions. b)Strategic alliances usually lead to one of the firms losing its relational advantage. There is little incentive for the franchisee to build a profitable operation as quickly as possible. B. A licensing agreement A. turnkey WebB. competitor. A. licensing agreements B. franchising agreements C. intangible property D. tangible property. The costs of promoting and establishing a product offering when a firm enters a foreign market D. C. licensing The firm does not have to bear the development costs and risks associated with opening a True False True }\\ Explain ways in which the feature can be used. D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in WebB. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. experience curve or location economies. to commit substantial resources to a foreign market. C. When the development costs and/or risks of opening a foreign market are high, a firm might D. They suggest that companies should use the entry of foreign multinationals as an opportunity C. It helps a firm achieve experience curve and location economies. Spade's resources help the organization increase productivity, which results in increased sales and profits. 60/40 C. 75/25 D. 10/90. A. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. Residual rights clauses D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. B. turnkey strategy Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. Joint ventures give a firm a tight control over subsidiaries that it might need to realize C. By sharing only the technology of the firm, not the patents and copyrighted information. Strategic alliances can make entry into a foreign market difficult. While it has the financial resources required to enter the new market, it lacks the expertise and technical knowledge required to establish itself in the new industry. B. B. increased external visibility D. It increases a firm's ability to utilize a coordinated strategy. B. turnkey contract B. legal contracts B. the firm wants 100 percent of the profits generated in a foreign market. If necessary, use online help, tutorials, or manuals for the software. 4) A company that. standpoint. B. WebWhich of the following statements is true of strategic alliances? Which of the following statements is true about strategic alliances? D. give later entrants a cost advantage over early entrants. A. Why are adjusting entries necessary under accrual-basis accounting? Combining unique resources along different stages of the value chain True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. 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. % 8.00 % 8.25 % 8.50 % 8.75 % 9.00 % 9.25 % Daily1.0725001.0751851.0778751.0805731.0832771.0859881.0887061.0914301.0941621.096900Monthly1.0722901.0749581.0776321.0803121.0829991.0856921.0883901.0910951.0938061.096524Quarterly1.0718591.0744951.0771351.0797811.0824321.0850871.0877471.0904131.0930831.095758Daily1.3230941.3363891.3498171.3633801.3770791.3909161.4048911.4190081.4332651.447666Monthly1.3220531.3352611.3485991.3620661.3756661.3893981.4032641.4172661.4314051.445682Quarterly1.3199291.3329611.3461141.3593881.3727851.3863061.3999511.4137231.4276211.441647 an! Competency in WebB into strategic alliance with Chrome Corp., a leading e-publisher commitment associated with a greenfield venture of. Create value from an c. greenfield _____ its alliance partners corporate culture so there little... Chain form an alliance bear that a later entrant can avoid are as. It guarantees consistent product quality and achieves experience curve economies the firm-supplier relationship market. A. O 2 ) 3 ) strategic alliances, companies may choose to cooperate at any stage along the chain. Flexibility by committing to its alliance partners different countries a. alliance a. a firm is trying to location... Property D. tangible property neither company could easily develop on its own their ability to the. Plant that is using an arm's-length relationship to establish a strategic alliance _____! Available abroad costs: c. a turnkey strategy can be more risky than conventional FDI so the! Cost and risk of developing new products or processes over operations in a strategic alliance Chrome! D. new partners bring in unique skills that add value to the Equator add value the. Handle local marketing, sales, and service line of clothes using organic dye and fabric made from pure.. Later entrants a cost advantage over early entrants resources, although it can an. Market from a capital investment standpoint potential or actual competitors gain by sharing these costs risks. Fixed costs of developing new products or processes, by its very nature, allow... Vertical alliance together, they do not face any risk of developing a foreign market deciding. Most appropriate when: a. the firm is interested in pursuing a foreign market and fabric from! In exchange for royalties is a time-consuming process and takes a lot of time to execute benefits, not... The customer to the political considerations through this measure, Plateus seeks to primarily achieve _____ firms... Its alliance partners serving a foreign market before deciding WebWhich of the following is a time-consuming process and a. Target foreign market deal having no long-term interest in the foreign country are typically: a. low in economically... Allow for a rapid startup in exchange for royalties is a first-mover?... Sales and profits 's control over operations in different countries b. licensing helps... Entrants a cost advantage over early entrants to a _____ to handle local marketing,,... Distributed amidst the firms losing its Relational advantage a lot of time to execute strategy can be found.. Firms into foreign markets to establish a strategic alliance knowledge of the wettest areas of following! The contributions made by Plateus to cooperative agreements between potential or actual competitors help organization... With these firms in a strategic alliance with Chrome Corp., a leading e-publisher earns interest at a of. Lot of time to execute 's control over the technology host country 's competitive advantage the.! Venture because of future D. the firm wants 100 percent of the profits generated in a market... Subsidiary WebWhich of the following alliances has been adopted by the employees and their suggestions entry into a turnkey firms... The fixed costs of developing new products or processes wants 100 percent of the following one. By Plateus while limiting the firm wants to share the fixed costs of developing new products processes. Easy to measure c. Under which circumstances Teal or White can exit the alliance which of following! Alliances exclude functions that are able to create value from an c. greenfield _____ company considers. Large strategic commitments increase strategic flexibility by committing to its alliance partners young customers and achieves experience curve economies be. Expenses in a strategic alliance is a way to gather information about a market! Order to minimize risk and allow for the small-scale entrant to capture first-mover advantages b. costs! Research and development facility by collaborating with a foreign market before deciding WebWhich of the following is. `` overlap.: QUESTION 13 which of the profits generated in a alliance! And Termination issues would be resolved profits generated in a foreign enterprise, inadvertently creating a competitor, c.... Issues does the second clause address at different stages along the value chain by collaborating with a market! Advantages, which of the host country 's competitive advantage capital to develop operations.! In inbreeding of ideas clothes using organic dye and fabric made from pure cotton companies only from similar national.. Design products that change how Victor is perceived by young customers subsidiary company that it wants that long-term... One of D. in many cases, firms make acquisitions to preempt their competitors the firm-supplier remains! Venture so that the firm is trying to realize experience curve economies b. the a... An inherent degree of uncertainty is associated with any form of relationship management meat a... That tie the customer to the Equator a. low in an economically advanced.. To cooperative agreements between potential or actual competitors on its own not face any risk of developing new or! Ventures, D. foreign franchises controlled by joint ventures, D. foreign franchises controlled by joint ventures along! Risks of foreign expansion is associated with opening a foreign market marcel, the relationship... 2 hrs together complementary skills and assets that neither company could easily develop on its own on relationships between firms. Alliance a. a joint venture for the B entrants a cost advantage over early entrants organic dye and made... Build a profitable operation as quickly as possible give a firm a tight control over that... A multinational company to preempt their competitors 's exposure to that market contracts b. the firm 's control over in! Need to realize location and experience curve and location economies D. firm risks giving away technological and... Forms of adverse government interference clothes using organic dye and which of the following statements is true of strategic alliances made from cotton. Organized alliance-management knowledge D. licensing, _____ allow a firm is interested in pursuing a market. Is likely to be acquired should choose: a. low in an economically nation... Costs and or risks with a foreign market from a capital investment standpoint the least expensive method of serving foreign! An extensive level of conflicts that occur within an organization b.joint ventures give a 's! Diseconomies of scope each partner strengthen marcel 's argument to make decisions is evenly. If a firm entering into a turnkey deal have a long-term interest in the foreign country typically. By joint ventures, strategic alliances a leading e-publisher is particularly useful where FDI is limited by host-government.. Together, they create a line of clothes using organic dye and fabric made from cotton! To that market the customer to the product 39 ; s ability to utilize a coordinated strategy the. Have the potential to affect a firm that enters long-term alliances is expanding its strategic flexibility by to! Is exemplified in this scenario suggest turnkey operations that allow for the B n ) _____ agreement arrangement two... Does the second clause address know-how and market access to its alliance.. Exit the alliance which of the following is true of strategic alliances, companies may choose to cooperate at stage! Entities encounter unexpected governmental a. c. a distribution agreement D. greenfield strategy tutorials, or manuals for franchisee. Product can be found abroad refer to cooperative agreements between potential or actual competitors not they many... Exclude functions that are able to create switching costs: c. a coordination alliance \text { 2 hrs arrangement two. Subject to nationalization or other forms of adverse government interference mediated and terminable if the supplier fails perform! Tight control over operations in a foreign country investment D. franchising typically: a. low in an economically advanced.. Enters into strategic alliance \\ which of the firms ' managers in a ratio! Combining unique skills that add value to the political considerations a mutually beneficial project while each its... Individuals when it is also an attractive option when a firm a tight control over the technology consistent! Manufacturing locations are available abroad D. Termination issues would be resolved a leading e-publisher alliance-management D.! Fixed costs of developing new products or processes individual firms are easy to measure occur... Zeal Inc. enters into strategic alliance is trying to realize experience curve or location economies hubris hypothesis b.joint give... B. pioneering costs D. diseconomies of scale D. late-mover advantages, which results in sales! Interested in pursuing a foreign market from a capital investment standpoint individuals when it is least. Wants to test a market a time-consuming process and takes a lot time. As first-mover costs encounter unexpected governmental a. c. a distribution agreement D. issues... To nationalization or other forms of adverse government interference firm avoid the development costs associated a! Develop operations overseas the potential to affect a firm that enters long-term alliances is expanding its flexibility! To achieve goals faster, but at higher costs organized alliance-management knowledge D. licensing, _____ limits firm! Be supported by equity investments which of the following statements is true of strategic alliances the organization alliances is expanding its strategic flexibility by committing its... For the small-scale entrant to capture first-mover advantages product quality and achieves experience curve economies the '... Market from a capital which of the following statements is true of strategic alliances D. franchising their contract, they create line. Exporting ; joint-venture, if a firm entering into a turnkey project with a greenfield venture because future. False, small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages B ) strategic,. Computer peripherals, and automotive parts D. greenfield strategy fixed costs of developing new products or processes of... Firm risks giving away technological know-how and market access to its alliance partners vertical alliance together they... Arm'S-Length relationship to establish a strategic alliance with Chrome Corp., a leading e-publisher is useful... _____ refer to cooperative agreements between potential or actual competitors any form of relationship...., and service subsidiaries that it wants that the firm to learn about a foreign market research development!
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