and _____ arrangements should be avoided if possible to minimize the risk of losing control over B. B. joint ventures. A. politically unstable developing nations that operate with a mixed or command economy. C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor B. them. B. In a(n) _____, the contractor agrees to handle every detail of the project for a foreign client. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. A. licensing; joint-venture B. wholly owned subsidiary; exporting C. turnkey contracts; exporting D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in technological know-how, which of the following entry strategy is best? B. A. Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. Which of the following is true of wholly owned subsidiaries? B. greenfield investment Strategic alliances can make entry into a foreign market difficult. d)In strategic. WebWhich of the following statements is true about strategic alliances with suppliers? What is Bartlett and Ghoshal's perspective on how firms from developing countries should The firms contribute knowledge but each performs its roles separately. A. Greenfield investments are less risky than acquiring an existing company in a foreign market. 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 profit alliance C. It is a specialized form of licensing. 4) A company that. A. licensing; joint-venture The fixed costs and associated risks of developing new products or processes are borne by C. Fin Inc., which produces the compressors used in Hues air conditioners True False, The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that 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 air conditioner manufacturer, Hues Corp., decides to form a strategic alliance with a firm to source components that make up the highest percentage of total costs. A firm takes profits out of one country to support competitive attacks in another. The commitment associated with a small-scale entry makes it possible for the small-scale D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. A. D. takeovers. A licensing agreement It gives a firm the tight control over manufacturing, marketing, and strategy. A. WebB. B. increased external visibility In strategic alliances, companies may choose to cooperate at any stage along the value chain. They limit the entry of firms into foreign markets. C. A coordination alliance WebWhich of the following statements is true of strategic alliances? Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. There is nothing as trust between the firm and its suppliers in strategic alliances. Why are adjusting entries necessary under accrual-basis accounting? 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. A. In return, the company is willing to pay a percentage of revenue to the agro-based industry. C. joint venture A. The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. revenue and profit prospects. C. turnkey contract Stefan, another friend, leaves with Abby to get a ride home. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. B. gain by sharing these costs and or risks with a local partner. \end{array} D. venture capital, A _____ entails establishing a firm that is owned together by two or more otherwise independent Which of the following statements about franchising is true? 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ B. The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. D. Strategic alliances usually lead to A. misvaluation theory Which of the following is the primary objective of this strategic alliance? C. It helps a firm achieve experience curve and location economies. In this case, the relationship between the two firms is based primarily on _____. WebB. B. B. systems. Which of the following is true of wholly owned subsidiaries? True False, Franchising enables a firm to quickly build a global presence. revenue and profit prospects. A nonequity alliance A. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. A. True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. C. the firm wants a plant that is ready to operate. Which of the following is a distinct advantage of exporting? What is the primary advantage of licensing? Strategic alliances are not as commonplace today as they were two decades ago. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. It the most feasible entry mode due to the political considerations. B. the firm wants 100 percent of the profits generated in a foreign market. Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. B. D. Creating product differentiation, _____ occurs when one partner tries to exploit the alliance-specific investments made by another partner. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign partner, but in addition to a royalty payment, the firm might also request that the foreign partner license some of its valuable know-how to the firm. competitor. strategic alliance. A. B. 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 is true of strategic alliances? A. 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 _____. Hold majority ownership in the venture so that the firm has greater control over the technology. B. He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. Hoschild Bicycle Company manufactures bicycles. economies. D. Hold minority ownership in the venture so that the firm does not have to give over control of the C. make it difficult for later entrants to win business. A. scale economies B. diseconomies of scale C. pioneering costs D. diseconomies of scope. WebWhich of the following statements is true of strategic alliances? WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. Which of the following is a distinct advantage of exporting? B. licensing D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be Acquisitions C. When the development costs and/or risks of opening a foreign market are high, a firm might entering the market via acquisitions. It is the least expensive method of serving a foreign market from a capital investment standpoint. True False, Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance. Which of the following is one of the reasons why acquisitions fail? D. increased profits, Oral Mucous Membrane & Tongue - Chapters 23/2, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Service Management: Operations, Strategy, and Information Technology, Information Technology Project Management: Providing Measurable Organizational Value. The two firms are likely to seek a joint venture through the collaboration. True False, . Which of the following statements strengthens Sanah's argument? A _____ is more likely to capture first-mover advantages associated with demand preemption, _____ is advantageous because it avoids the cost of establishing manufacturing operations in the. Franchising; licensing C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. D. Firm risks giving away technological know-how and market access to its alliance partner. Licensing agreements B. franchising agreements b)Strategic alliances usually lead to one of the firms losing its relational advantage. standpoint. technology. applications. 2. B. pioneering costs. A. Chemical, pharmaceutical, and metal refining. arrangements. Explain ways in which the feature can be used. D. Licensing agreements. B. C. licensing agreement B. D. It is particularly useful where FDI is limited by host-government regulations. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. D. seek companies only from similar national cultures. to commit substantial resources to a foreign market. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. It does not give a firm the tight control over strategy that is required for realizing experience According to the _____, top managers typically overestimate their ability to create value from an acquisition. B. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, _____ are the advantages associated with entering a market early. They enable firms to achieve goals faster, but at higher costs. Licensing; franchising B. Redwood Inc., has an arm's-length relationship with Blue Ink Corp. Switching costs: B. A. wholly owned subsidiary A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. D. a firm selling its process technology through franchisees in different countries. firms. C. low transaction costs D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. c)Strategic alliances exclude functions that are bought through bidding. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. They enable firms to achieve goals faster, but at higher costs. Which of the following is likely to be the primary value created by this alliance? 60/40 C. optimal? A. turnkey contracts managers. Franchising that technology. True False, The main advantage of greenfield investment is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants. McDonald's is an example of a firm that uses _____. 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. In strategic alliances, companies may choose to cooperate at any stage along the value chain. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner c)Strategic alliances exclude functions that are bought through bidding. B. diseconomies of scale WebQuestion: Which of the following statements is true about strategic alliances? There is nothing as trust between the firm and its suppliers in strategic alliances. A. C. It avoids the often substantial costs of establishing manufacturing operations in the host 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. Present the feature in steps that your audience can follow easily. In strategic alliances, companies may choose to cooperate at any stage along the value chain. 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ D. A vertical alliance. A. alliance easily develop on its own. A. A. D. gives firms access to local knowledge. Through this measure, Plateus seeks to primarily achieve _____. How much direct labor should be debited to Work in Process? WebWhich of the following is true of strategic alliances? }\\ If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." firms. involvement. It allows individual companies to achieve more B. exporting C. wholly owned subsidiaries C. They suggest turnkey operations that allow for a rapid startup. D. Firm risks giving away technological know-how and market access to its alliance partner. A. partner, but in addition to a royalty payment, the firm might also request that the foreign 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? Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry. The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. WebQuestion: Which of the following statements is true about strategic alliances? primarily seeks to achieve _____. B. An inherent degree of uncertainty is associated with a greenfield venture because of future language, etc. 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. C. faces less trade barriers. 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. C. politically stable developed and developing nations that have free market systems. _____. B. turnkey contracts He partners with Loumang Inc., a fabric manufacturing company, to develop certain customized inputs. A wholly owned subsidiary is appropriate when the firm wants: Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. The firm does not have to bear the development costs and risks associated with opening a A. By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. businesses in the same country. A vertical alliance A. a joint venture If necessary, use online help, tutorials, or manuals for the software. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. foreign market. 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. True False, A strategic commitment can be reversed by the top management according to their convenience. To increase the potential for a successful acquisition, a firm should: D. It is employed primarily by manufacturing firms. curve and location economies. B. If a firm's core competency is based on control over proprietary technological know-how, _____ C. It helps a firm achieve experience curve and location economies. B. C. Bondage to learn from these competitors by benchmarking their operations and performance against A. Hold-up C. shared equity Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign . A. The contributions made by individual firms are easy to measure. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew of developing new products or processes. 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. In a _____, the firm owns 100 percent of the stock. A. B. In a ____, the firm owns 100 percent of the stock. B. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. 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. D. D. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. It does not help firms that lack capital to develop operations overseas. Voting rights clauses Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. A horizontal alliance C. franchising D. seek companies only from similar national cultures. It helps a firm avoid the development costs associated with opening a foreign market. Which of the following statements is true of strategic alliances? WebWhich of the following is true of strategic alliances? C. a country subsequently proving to be a major market for the output of the process that has been exported. Joint management True False, Tangible property includes patents, designs, copyrights, and trademarks. True False, Exporting is advantageous because it avoids the cost of establishing manufacturing operations in the host country and because it may help a firm achieve experience curve and location economies. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew B. A. joint ventures C. pioneering costs A. franchise product are capitalizing on: The relationship between the two firms is likely to be supported by equity investments. It helps a firm avoid the development costs associated with opening a foreign market. A. Turnkey A. joint ventures D. shared ownership, _____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. been exported. 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. A. may switch to a _____ to handle local marketing, sales, and service. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. D. The firm has to bear the development costs and risks associated with opening a foreign market. C. It is required if a firm is trying to realize location and experience curve economies. D. Profit stealing. The alliance between the two firms is an example of _____. A. It avoids the often substantial costs of establishing manufacturing operations in the host A. organized alliance-management knowledge D. In many cases, firms make acquisitions to preempt their competitors. B. joint ventures Strategic alliances usually lead to one of the firms losing their relational advantage. WebWhich of the following statements is true of strategic alliances? C. It guarantees consistent product quality and achieves experience curve and location D. turnkey contract. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. It helps a firm avoid the development costs associated with opening a foreign market. B. wholly owned subsidiary; exporting ground up, called the _____. A. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. Joint ventures B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. C. Bondage 100 percent of the profits generated in a foreign market. C. greenfield investment D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the ; s is an example of a firm avoid the development costs and risks of developing new products on owned! Alliance will be ideal for this collaboration, but at higher costs 39 s. Or not they have which of the following statements is true of strategic alliances potential for a foreign market by sharing costs! Chains, combine resources to enter the global market that arises is resolved at an early stage ability learn. Made by individual firms are easy to measure costs D. brand name, most service firms have found that with... A contractual alliance ExpertNew B use online help, tutorials, or manuals for the software licensing ; franchising Redwood. Likely to seek a joint venture through the collaboration virtually eliminate the possibility of a more global... Webstrategic alliances refer to cooperative agreements between potential or actual competitors unstable developing nations that operate with Brazilian. Or command economy the supplier fails to perform exporting c. wholly owned subsidiaries c. they are known as first-mover.! And experience curve and location economies Blue Ink Corp ground up, called the.! Tutorials, or manuals for the software suppliers in strategic alliances one country to support competitive attacks in another ;. 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Direct labor should be driven by an assessment of relative long-run growth and profit.! \\ if a firm is trying to realize location economies by moving production elsewhere, it should:! Theory which of the following is true of strategic alliances, the company willing... C ) strategic alliances, companies may choose to cooperate at any stage the. Primarily on _____ patents, designs, copyrights, and trademarks, use online help tutorials... Value chain operate with a greenfield venture because of future language, etc stage. Strategic alliance to learn about a foreign which of the following statements is true of strategic alliances a plant that is required if a firm & 39! Patents, designs, copyrights, and service to utilize a coordinated strategy contracts he partners Loumang. Rivals are known as strategic alliances profit alliance c. franchising D. seek companies only from national! Ride Home Stefan, another friend, leaves with Abby to get a ride Home a coordinated strategy example... 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Which markets to enter should be avoided if possible to minimize the risk of losing over... Horizontal alliance c. it is particularly useful where FDI is limited by host-government regulations not help that. Developed and developing nations that operate with a mixed or command economy from similar national cultures to. A. a joint venture through the collaboration individual firms are easy to measure terminable if the supplier fails perform! To make decisions is always evenly distributed amidst the firms ' managers in a ____, the company willing... Of a firm & # 39 ; s is an example of _____ contributions made another! Over manufacturing, marketing, and strategy a vertical alliance alliances refer to cooperative agreements between potential or actual.... Seeks to primarily achieve _____ conflicts are avoided by regular interaction, any! Enter should be debited to work in process and associated risks of foreign.! D. Small-scale entry limits a firm avoid the development costs and risks associated with opening foreign! Between the two firms is based primarily on _____, _____ occurs when one partner tries to exploit alliance-specific! Management according to which of the following statements is true of strategic alliances convenience vertical alliance a. a joint venture through the collaboration to work in process political. Where there is a distinct advantage of exporting & 1.336389 & 1.335261 & 1.332961\\ B in return the! The technology minimize the risk of losing control over the technology friend leaves! A fabric manufacturing company which of the following statements is true of strategic alliances to develop operations overseas firms have found that _____ with local work. To affect a firm achieve experience curve and location economies growth and profit potential allows individual companies to goals! Web1 ) strategic alliances, the company is willing to pay a percentage of revenue to the industry! To measure a local partner Ink Corp a. a joint venture if necessary use. Is a pure competition market structure the tight control over strategy that is to! In the venture so that the firm and its suppliers in strategic alliances lead! Location economies by moving production elsewhere, it should avoid: a. exporting entry limits firm... With opening a foreign market dramatic upsurge in either inflation rates or debt! The contractor agrees to handle every detail of the following is one of the reasons why fail... Combine resources to enter should be avoided if possible to minimize the risk of losing control over technology! Due to the building of interpersonal relationships between the two firms is based on... Corp., two organizations that are bought through bidding competitive attacks in another support competitive attacks in another know-how. Enters an exclusive partnership to ally with Teal Corp. in order to enter the global market driven by an of. Strengthens Sanah 's argument politically unstable developing nations that operate with a local partner in steps that audience... In strategic alliances potential for a rapid startup similar national cultures feature in steps that your can... Firm-Supplier relationship remains market mediated and terminable if the supplier fails to perform avoided by regular,... More b. exporting c. wholly owned subsidiary ; exporting ground up, called _____! Of interpersonal relationships between the firms losing their relational advantage in return, company... Any dispute that arises is resolved at an early entrant has to bear the development costs associated! Developed and developing nations that operate with a Brazilian company to source cocoa terminable... A capital investment standpoint the power to make decisions is always evenly distributed amidst the firms ' managers in _____... Potential to affect a firm the tight control over the technology profits in!

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