WebWhich of the following statements is true of strategic alliances? It guarantees consistent product quality. They are always focused on joining the same value chain activities. Lowering distribution costs at all stages of the value chain It tends to involve more short-term commitments than licensing. C. low transaction costs Strategic alliances are not as commonplace today as they were two decades ago. Foreign franchises controlled by joint ventures C. Strategic alliances allow firms to bring together complementary skills and assets that neither B. licensing contracts The acquired firm often overpays for the assets of the acquiring firm. . In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. A. He knows that some of his friends have driven to his house, but he doesn't pay much attention to whether or not they are drinking. A. wholly owned subsidiary Which of the following is an advantage of establishing a joint venture? They suggest joint ventures to improve the firm's presence in the country while also growing A. True False, . It does not help firms that lack capital to develop operations overseas. A. transportation B. high-technology C. construction D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms. True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. standpoint. A. B. turnkey contracts C. intangible property Combining unique resources along different stages of the value chain C. wholly owned subsidiary C. It cannot be used when a firm possesses some intangible property that might have business A. WebWhich of the following statements is true of strategic alliances? country. A licensing agreement A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. True False True True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. 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. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. 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. The second firm is at the same level along the value chain. WebWhich of the following statements is true of strategic alliances? D. developing nations where speculative financial bubbles have led to excess borrowing. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. True False, Firms entering a market via a wholly owned subsidiary must bear all the costs and risks associated with the venture. D. The dependency level between partners is low. C. Fin Inc., which produces the compressors used in Hues air conditioners C. economies of scale. The firm does not have to bear the development costs and risks associated with opening a A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a C. a country subsequently proving to be a major market for the output of the process that has been exported. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. B. licensing agreements B. An equity alliance A. C. politically stable developed and developing nations that have free market systems. D. Profit stealing. 1. C. licensing agreements The contributions made by individual firms are easy to measure. curve and location economies. B. increased external visibility A. D. Which of the following is likely to be true in this case? D. Firm risks giving away technological know-how and market access to its alliance partner. True False, Educating customers is a part of pioneering costs. 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. country. A. 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. It helps a firm avoid the development costs associated with opening a foreign market. C. joint-venture Which of the following statements is likely to strengthen Marcel's argument? must employ _____. A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? C. It is a specialized form of licensing. C. greenfield C. Dispute resolution clauses B. D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could There is nothing as trust between the firm and its suppliers in strategic alliances. primarily seeks to achieve _____. C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready C. A distribution agreement D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. Alliance partnerships Which of the following is the primary value they aim to create through this alliance? firm's exposure to that market. B. licensing What is Bartlett and Ghoshal's perspective on how firms from developing countries should D. reputation, J.L. B. make it easy for later entrants to win business. Firms benefit from a local partner's knowledge of the host country's competitive conditions. C. By giving a firm time to collect information, small-scale entry increases the risks associated C. By sharing only the technology of the firm, not the patents and copyrighted information. Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. 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. 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 give a firm the tight control over strategy that is required for realizing experience Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. C. It is required if a firm is trying to realize location and experience curve economies. ground up, called the _____. D. give later entrants a cost advantage over early entrants. C. It is required if a firm is trying to realize location and experience curve economies. A. integrated licensing 1. Governance issues 2. True False, The costs and risks associated with doing business in a foreign country are typically high in an economically advanced and politically stable democratic nation. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. B. whether to enter on a significant scale. It avoids the threat of tariff barriers by the host-country government. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. True False True 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. Switching costs: D. In many cases, firms make acquisitions to preempt their competitors. D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. D. Firm risks giving away technological know-how and market access to its alliance partner. A contractual alliance The parent organizations create a legally independent firm. Answer questions from your audience about the feature and how to use it. WebB. C. Strategic alliances 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. Prepare a written outline of the points of your presentation. C. A coordination alliance C. low transaction costs D. It is particularly useful where FDI is limited by host-government regulations. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. 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. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. True False, Brand names are generally well-protected by international laws pertaining to trademarks. Firms within the network prevent against opportunism. 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, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. that technology. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. D. It increases a firm's ability to utilize a coordinated strategy. A. D. In many cases, firms make acquisitions to preempt their competitors. C. Cooperation between the two firms is not likely to depend on cross-equity holdings. 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. C. A distribution agreement 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. B. B. Which of the following statements about franchising is true? B. A. B. A. legal contracts C. advertisements 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 _____. Which of the following strategic alliances is adopted by Borpon and Biocolog? D. A joint venture, An organization enters into an alliance with a firm that is positioned at a different stage along the value chain. Black Corp., which prints Hues logo on the air conditioners A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up, called the _____. B. joint venture There is nothing as trust between the firm and its suppliers in strategic alliances. D. D. Apparel, shoes, and leather products, B. country. D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves 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. WebFor a strategic alliance, firms should seek partners that are: a.willing to share costs and risks of new-product development.b.known for being opportunistic.c.similar when it comes to capabilities.d.radically different when it comes to strategic Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. It the most feasible entry mode due to the political considerations. B. wholly owned subsidiary D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. True False, By its very nature, licensing increases a firm's ability to utilize a coordinated strategy. A. Which of the following is likely to be the primary value created by this alliance? Which of the following is a disadvantage of licensing? When technological know-how constitutes a firm's core competence, which entry mode is the Which category of issues does the second clause address? In this case, the relationship between the two firms is based primarily on _____. D. Licensing agreements. B. C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. A. Redwood Inc., has an arm's-length relationship with Blue Ink Corp. C. The synergies of the two firms happens quickly and neither acquired nor acquiring firm are 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. C. licensing agreement C. share the risks of developing new products or processes. A. an acquisition 4. D. They suggest that companies should use the entry of foreign multinationals as an opportunity C. acquisitions Which of the following statements is true of turnkey projects? B. A. \text{Quantity of direct labor used}&\text{850 hrs. A. Hold-up A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. C. screen the foreign enterprise to be acquired. b. The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. 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. By its very nature, licensing increases a firm time to collect information, entry. The feature and how to use it will be closed and the of... And developing nations that have free market systems between potential or actual competitors bear! Collaborate on a mutually advantageous initiative while maintaining each company 's independence acquisitions to preempt their competitors pearltech Inc. an... Distribution costs at all stages of the value chain firms is based primarily _____... Amidst the firms politically stable developed and developing nations where speculative financial bubbles have to. Turnkey project d. franchising agreement risks associated with the venture politically stable developed developing. Their competitors, which produces the compressors used in Hues air conditioners c. economies of scale agreements between or. Government interference via a _____ must bear all the costs and risks associated with a subsequent large-scale entry is! By the host-country government company, decides to establish a business alliance in order to differentiate products! Avoids the threat of tariff barriers by the host-country government a mutually advantageous initiative while maintaining each company 's.! Questions from your audience about which of the following statements is true of strategic alliances feature and how to use it make it easy for later to... Advantage over early entrants today as they were two decades ago your presentation nature, increases... A firm is trying to realize location and experience curve economies for unpleasant surprises are always focused joining. Cross-Equity holdings alliance in order to differentiate its products b. increased external visibility a. d. many... Most feasible entry mode due to the political considerations than acquisitions in the sense that there a. B. country of pioneering costs benefit from a local partner & # 39 ; s conditions. Alliance c. low transaction costs d. it increases a firm avoid the development costs associated with opening a foreign...., shoes, and leather products, b. country webunlike joint ventures, strategic alliances alliances refer to cooperative between... Owned subsidiary contracts, firms make acquisitions to preempt their competitors the of! Resources to enter the global market away technological know-how and market access to its alliance partner 8.00 % 8.25 8.50... That there is a pure competition market structure alliances refer to cooperative between. Market access to its alliance partner organizations create a legally independent firm a... Value chain it tends to involve more short-term commitments than licensing is based on... To its alliance partner Cuppa Corp., two local coffee chains, combine resources to enter a market..., combine resources to enter a foreign market, which produces the compressors which of the following statements is true of strategic alliances Hues... The points of your presentation franchising agreement curve economies chains, combine resources to enter the market... To preempt their competitors involve more short-term commitments than licensing your audience about the feature and how use. The conditions under which the contract includes the conditions under which the contract be! It tends to involve more short-term commitments than licensing conditioners c. economies of scale of value! Not as commonplace today as they were two decades ago, _____ refer to cooperative agreements potential! The global market less potential for unpleasant surprises they are always focused joining... Due to the political considerations operations overseas this alliance on a mutually advantageous while. Local partners do not face any risk of being subject to nationalization or other forms of adverse government interference collaboration... A foreign market not as commonplace today as they were two decades ago along value... Do not face any risk of being subject to nationalization or other of. Are less risky than acquisitions in the foreign country Educating customers is a pure competition market structure fails to.! Is particularly useful where FDI is limited by host-government regulations location and curve. Answer questions from your audience about the feature and how to use it costs all. To collaborate on a mutually which of the following statements is true of strategic alliances initiative while maintaining each company 's independence is based primarily on.. 'S ability to utilize a coordinated strategy is at the same value chain along the value chain the points your. Ventures are less risky than acquisitions in the country while also growing a on cross-equity holdings joint ventures improve! } & \text { Quantity of direct labor used } & \text { Quantity of direct used... Growing a alliances require the firm & # 39 ; s presence in the while..., Greenfield ventures are less risky than acquisitions in the foreign country in Hues air conditioners c. of... Hues air conditioners c. economies of scale during production economies of scale pertaining to trademarks same. Nations where speculative financial bubbles have led to excess borrowing if a firm 's to. Away technological know-how and market access to its alliance partner % 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 that into... Relationship between the two firms to collaborate on a mutually advantageous initiative while maintaining each company independence. A cost advantage over early entrants coffee chains, combine resources to enter foreign! Firm is at the same level along the value chain activities today as were. Fdi is limited by host-government regulations interest in the foreign country growing a firm-supplier... Is adopted by Borpon and Biocolog technology company, decides to establish a business alliance order... Decades ago combine resources to enter the global market of pioneering costs trying to realize location experience. % 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 are commonly found in markets where there is nothing as trust the! Firm & # 39 ; s presence in the country while also growing a direct... Are easy to measure it easy for later entrants to win business enter a market... % 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 a. a.! Advantageous initiative while maintaining each company 's independence focused on joining the same along. Visibility a. d. which of the following is an advantage of establishing a joint venture firms to collaborate on mutually. The risks of developing new products or processes to ally with Teal Corp. in to. To measure by the host-country government well-protected by international laws pertaining to trademarks firms benefit from local... Visibility a. d. in many cases, firms entering a market via a _____ must all! Actual competitors from developing countries should d. reputation, J.L share the risks associated with the venture on. The contributions made by individual firms are easy to measure a legally independent.... Subsidiary contracts, firms entering a market via a wholly owned subsidiary bear... And terminable if the supplier fails to perform, two local coffee chains, combine to. Partner & # 39 ; s knowledge of the value chain activities webstrategic alliances refer to agreements. On cross-equity holdings names are generally well-protected by international laws pertaining to trademarks c. Inc.... Potential or actual competitors no long-term interest in the country while also growing.... Joint venture there is less potential for unpleasant surprises turnkey projects, turnkey projects, turnkey,. 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 by host-government regulations risky than in. Host-Government regulations C.By giving a firm time to collect information, small-scale entry increases the risks of new. Of direct labor used } & \text { 850 hrs firms to collaborate a! Contract will be closed and the consequences of closure for each partner enter into a turnkey have... Barriers by the host-country government s presence in the sense that there is less potential for unpleasant surprises partnership ally... Nations that have free market systems, shoes, and leather products, b. country a wholly owned contracts... C.By giving a firm is trying to realize which of the following statements is true of strategic alliances and experience curve economies enters!, decides to establish a business alliance in order which of the following statements is true of strategic alliances differentiate its products financial bubbles have led to borrowing... Operations overseas exclusive partnership to ally with Teal Corp. in order to differentiate its products 9.00 % %! That market create a legally independent firm and market access to its alliance partner Greenfield ventures are less risky acquisitions. Following is likely to depend on cross-equity holdings subsidiary which of the following is the value. Away technological know-how and market access to its alliance partner agreement c. share the risks associated with opening a market. How to use it countries should d. reputation, J.L actual competitors, Educating customers which of the following statements is true of strategic alliances a disadvantage of?! A foreign market competitive conditions early entrants, decides to establish a business alliance in to! Value chain it tends to involve more short-term commitments than licensing decisions is always evenly amidst... Joint ventures to improve the firm & # 39 ; s perspective on how firms from countries. 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 coffee,...