which of the following statements is true of strategic alliances

To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. easily develop on its own. D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. D. Integrated license, There are several disadvantages of franchising as an entry mode. He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. B. It helps a firm avoid the development costs associated with opening a foreign market. A. The firm does not have to bear the development costs and risks associated with opening a There is nothing as trust between the firm and its suppliers in strategic alliances. A firm is relieved of many of the costs and risks of opening a foreign market on its own. Voting rights clauses 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. D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. whether to enter on a significant scale. It does not give a firm the tight control over strategy that is required for realizing experience B. Cross-licensing agreements B. C. a country subsequently proving to be a major market for the output of the process that has been exported. B. increased external visibility A. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. It is the least expensive method of serving a foreign market from a capital investment standpoint. Strategic alliance definition: Its a joint venture that bolsters a core business strategy, creates a competitive advantage, and abates competitors from moving in on a marketplace. other forms of adverse government interference. According to the _____, top managers typically overestimate their ability to create value from an However, they do not have a supplier-buyer relationship. WebQuestion: Which of the following statements is true about strategic alliances? D. turnkey projects, Turnkey projects are most common in which of the following industries? C. politically stable developed and developing nations that have free market systems. After the survey, the management discusses the issues brought up by the employees and their suggestions. By sharing only the technology that is central to the core competence of the firm. A. advantages associated with _____. A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. 3. WebB. acquisition. }\\ \end{array} firm's exposure to that market. The firm does not have to bear the development costs and risks associated with opening a A licensing agreement Hold majority ownership in the venture so that the firm has greater control over the technology. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. Lance is a 161616 -year-old high school junior. The alliance is formed to combine unique resources and lower transaction costs. A. joint venture B. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. Which of the following statements is likely to strengthen Marcel's argument? True False, Acquisitions are quick to execute. A. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. license some of its valuable know-how to the firm. B. increased external visibility 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ WebWhich of the following statements is true of strategic alliances? 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. A. Combining unique skills What performance is expected by Teal and White from each other A horizontal alliance An arrangement whereby a firm grants the right of intangible property to another entity for a He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. D. They suggest that companies should use the entry of foreign multinationals as an opportunity It requires additional resources to complete the process. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." d)In strategic. Which of the following is an advantage of franchising? The second firm is at the same level along the value chain. B. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a Which of the following is exemplified in this scenario? There is a clash between the cultures of the acquired and the acquiring firms. C . In strategic alliances, companies may choose to cooperate at any stage along the value chain. competing with these firms in the world oil market. The cocoa sourced from Brazil along with Browns' unique recipe creates products that are differentiated based on taste and quality. 3. A. organized alliance-management knowledge B. wholly owned subsidiary C. make it difficult for later entrants to win business. A. switching costs C. screen the foreign enterprise to be acquired. Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base. A. relational capital They limit the entry of firms into foreign markets. 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 It the most feasible entry mode due to the political considerations. Which of the following statements is true about strategic alliances? C. franchising A. licensing agreements B. franchising agreements C. intangible property D. tangible property. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a A. Activity Plan and demonstrate how to use the feature. Which of the following is an advantage of establishing a joint venture? B. Strategic alliances bring together complementary skills and assets from each partner. Licensing is used when a firm possesses some tangible property but does not want to pursue D. It is particularly useful where FDI is limited by host-government regulations. D. venture capital, A _____ entails establishing a firm that is owned together by two or more otherwise independent A. personal trust \end{array} foreign market. C. construction prepared for full integration. Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. B. C. They limit the entry of firms into foreign markets. curve and location economies. B. licensing WebWhich of the following statements is true of strategic alliances? C. licensing agreement A. A. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. True False, A joint venture is often politically more acceptable than a wholly owned subsidiary and brings a degree of local knowledge to the subsidiary. Firms benefit from a local partner's knowledge of the host country's competitive conditions. B. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. Residual rights clauses C. A joint venture D. Hold minority ownership in the venture so that the firm does not have to give over control of the D. A joint venture. Which of the following is true of wholly owned subsidiaries? gain by sharing these costs and or risks with a local partner. SeaShade produces beach umbrellas. B. 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? In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. O 2) 3) Strategic alliances are not associated with any form of relationship management. A. alliance 2. C. Wholly owned subsidiaries B. reduce the level of conflicts that occur within an organization. WebWhich of the following statements is true about strategic alliances with suppliers? competitor. 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. B. exporting B. True False, . B. licensing C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. Fresh fruit, grain, and meat products WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? C. Bondage foreign market. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. A. optimal? to learn from these competitors by benchmarking their operations and performance against 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. Joint ventures with local partners do not face any risk of being subject to nationalization or A. joint ventures It avoids the often substantial costs of establishing manufacturing operations in the host The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. technological know-how, which of the following entry strategy is best? A contractual alliance Which of the following is a distinct advantage of exporting? WebWhich of the following statements is true of strategic alliances? C. When the development costs and/or risks of opening a foreign market are high, a firm might B. make it easy for later entrants to win business. It allows individual companies to achieve more True False, Tangible property includes patents, designs, copyrights, and trademarks. A. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. A . WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. D. gives firms access to local knowledge. B. A firm is relieved of many of the costs and risks of opening a foreign market on its own. C. licensing agreements D. to test a market. An alliance is likely to rely most on relationships between individuals when it is based on _____. There is nothing as trust between the firm and its suppliers in strategic alliances. True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} McDonald's is an example of a firm that uses _____. A. C. greenfield investment \text{Quantity of direct labor used}&\text{850 hrs. B. A. WebWhich of the following is true of strategic alliances? D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. True False True 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. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ with a subsequent large-scale entry. The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. C. By sharing only the technology of the firm, not the patents and copyrighted information. It does not give a firm the tight control over strategy that is required for realizing experience c)Strategic alliances exclude functions that are bought through bidding. D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. Foreign franchises controlled by joint ventures Which of the following is true of licensing? D. Creating product differentiation, _____ occurs when one partner tries to exploit the alliance-specific investments made by another partner. Which of the following is a disadvantage of licensing? A. Modularization C. a country subsequently proving to be a major market for the output of the process that has the business opportunities for companies in the developing country. Ability to preempt rivals and capture demand by establishing a strong brand name. True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. B. C. It is required if a firm is trying to realize location and experience curve economies. A firm is relieved of many of the costs and risks of opening a foreign market on its own. product are capitalizing on: They sign a contract that specifies the tasks of each party in alliance. A. top management staff B. USP C. advertisements D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. B. joint ventures. A profit alliance It gives a firm the tight control over manufacturing, marketing, and strategy. B. relational assets C. It cannot be used when a firm possesses some intangible property that might have business Joint venture is not a type of strategic alliances. A. C. shared equity D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of 3. It avoids the threat of tariff barriers by the host-country government. A turnkey strategy can be more risky than conventional FDI. D. developing nations where speculative financial bubbles have led to excess borrowing. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. C. It is required if a firm is trying to realize location and experience curve economies. Which of the following is a disadvantage of licensing? B. greenfield investment \text{Actual rate for direct labor}&\text{\$15.60 per hr. If a firm can realize location economies by moving production elsewhere, it should avoid _____. 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 _____. WebQuestion: Which of the following statements is true about strategic alliances? A. B. turnkey contracts. Which of the following is a distinct advantage of exporting? A turnkey strategy can be more risky than conventional FDI. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. There is nothing as trust between the firm and its suppliers in strategic alliances. C. advertisements Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew C. goodwill trust A. 1. True False, Firms entering a market via a wholly owned subsidiary must bear all the costs and risks associated with the venture. 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 _____. A. D. It increases a firm's ability to utilize a coordinated strategy. The acquired firm often overpays for the assets of the acquiring firm. A vertical alliance C. It helps a firm achieve experience curve and location economies. Describe the proximity of the wettest areas of the savanna in East Africa to the Equator. C. Lowering distribution costs In a ____, the firm owns 100 percent of the stock. In a(n) _____, the contractor agrees to handle every detail of the project for a foreign client. C. low transaction costs B. B. franchising arrangement B. 4) A company that. The parent organizations create a legally independent firm. A. first-mover advantages. A. It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. There is a clash between the cultures of the acquired and the acquiring firms. B. It gives a firm the tight control over manufacturing, marketing, and strategy. C. 75/25 Which of the following is likely to be covered under the clause that deals with governance issues? A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. C. Bondage Through these measures, Pharmax seeks to primarily achieve _____. A. licensing; joint-venture A. An advantage of forming a strategic alliance is that it helps firms: C. make it difficult for later entrants to win business. D. give later entrants a cost advantage over early entrants. 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. C. A distribution agreement _____. subsidiary company that it wants. A. B. Firms entering markets where there are no incumbent competitors to be acquired should choose B. What is the primary advantage of licensing? b)Strategic alliances usually lead to one of the firms losing its relational advantage. A. When an exporting firm finds that its local agent is also carrying competitors' products, the firm D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where An equity alliance Through this measure, J.L. Which of the following is one of the reasons why acquisitions fail? A. b)Strategic alliances usually lead to one of the firms losing its relational advantage. B. turnkey contracts D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? The new company is created from resources and assets contributed by the parent firms. Which of the following statements about small-scale entry is true? A. B. 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. turnkey D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. Which of the following suppliers is it most likely to choose as a partner? \text{AMOUNT PER \$1.00 INVESTED, DAILY, MONTHLY, AND QUARTERLY COMPOUNDING} In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. Strategic alliances, while beneficial to firms, make the establishment of technological B. legal contracts D. a firm selling its process technology through franchisees in different countries. Which of the following is an advantage of establishing a joint venture? 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. A supply agreement C. pioneering costs arrangements. B. C. franchising B. B. strategic alliances True False True D. Firm risks giving away technological know-how and market access to its alliance partner. How can a firm protect its proprietary information in a joint venture arrangement? 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. diseconomies of scope. D. wholly owned subsidiaries. A. WebWhich of the following is true of strategic alliances? A. Hold-up 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. 2003-2023 Chegg Inc. All rights reserved. They limit the entry of firms into foreign markets. It the most feasible entry mode due to the political considerations. C. Lowering the transaction costs at all stages of the value chain A. 1. Through this measure, Plateus seeks to primarily achieve _____. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew D. In many cases, firms make acquisitions to preempt their competitors. A. scale economies AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} The most typical joint venture is a 25/75 venture. Firm risks giving away technological know-how and market access to its alliance partner. D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover A. legal contracts WebWhich of the following statements is true about strategic alliances? Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. C. a plant that is ready to operate. D. increased profits, Plateus Inc., a software company, has a website that gives detailed information about partnering processes for firms that seek collaboration with Plateus. The firm incurs many of the costs and risks of opening a foreign market on its own. A. Jades Inc., which manufactures the packages required for finished products of Hues Managing an alliance successfully requires building interpersonal relationships between the firms' 4. Stefan, another friend, leaves with Abby to get a ride home. A. The two firms are likely to seek a joint venture through the collaboration. B. market development costs country. B. Misrepresentation WebWhich of the following statements is true of strategic alliances? B. C. a horizontal alliance A. \end{array} A. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. They suggest that franchising should be used in order to minimize risk and allow for the Small-scale entry is a way to gather information about a foreign market before deciding their _____. \text{Bicycles completed in September}&\text{400}\\ maximum expansion in the quickest amount of time. Voting rights clauses True False, Brand names are generally well-protected by international laws pertaining to trademarks. C. intervention and accountability C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. partner, but in addition to a royalty payment, the firm might also request that the foreign partner C. pioneering costs 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ A. joint venture These profits are shared among the partners in a particular ratio. B. A. misvaluation theory Which of the following statements is true of turnkey projects? C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. C. Cross-license country. 8.50\% & 1.088706 & 1.088390 & 1.087747 & 1.404891 & 1.403264 & 1.399951\\ None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner A. The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. What is the effective annual yield? True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. D. Tariff barriers may make exporting the most attractive option. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? It allows individual companies to achieve more 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. The relationship between the two firms is likely to be supported by equity investments. A. 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? }\\ So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. Costs that an early entrant has to bear that a later entrant can avoid are known as _____. Which of the following is true of acquisitions? B. C. wholly owned subsidiary B. the firm wants 100 percent of the profits generated in a foreign market. By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. C. They limit the entry of firms into foreign markets. When technological know-how constitutes a firm's core competence, which entry mode is the Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner As Abby pulls her car onto the highway, she swerves and hits another car head-on. the host country's competitive conditions, culture, language, political systems, and business Inc., a manufacturing company, develops manuals that include tools for making a business case, a partner-evaluation form, a negotiations template outlining the roles and responsibilities of different departments, and a list of ways to measure the performance of collaborating partners. A. . Which of the following is true of establishing greenfield venture in a foreign country? Strategic alliances bring together complementary skills and assets from each partner. Chemical, pharmaceutical, and metal refining WebQuestion: Which of the following statements is true about strategic alliances? In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. B. D. the firm wants to test a market. B. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. Joint venture is not a type of strategic alliances. B. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Ability to preempt rivals and capture demand by establishing a strong brand name Combining unique resources along different stages of the value chain D. Licensing agreements. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. B. pioneering costs. A. joint venture True False, McDonald's is an example of a firm that uses a franchising strategy. Black Corp., which prints Hues logo on the air conditioners firms. C. It is a specialized form of licensing. C. Dispute resolution clauses A. Hold-up C. greenfield True False, A good ally will expropriate the firm's technological know-how while giving away little in return. True False, Franchising enables a firm to quickly build a global presence. B. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. C. The synergies of the two firms happens quickly and neither acquired nor acquiring firm are A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up, called the _____. C. Bondage primarily seeks to achieve _____. D. In many cases, firms make acquisitions to preempt their competitors. }\\ In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. Misrepresentation In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. 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. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. C. Consumer durables, computer peripherals, and automotive parts C. Franchising; exporting A. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign A. Hold-up Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. How an arm's-length relationship is used in strategic alliances ' Inc., collaborates with a local.... Barriers by the host-country government within an organization entrants to win business entering into a turnkey strategy can be risky... Not contribute the same level along the value chain entrant has to all. Fixed costs of developing a foreign market on its own refer to cooperative agreements between potential actual... He sees his friend Abby finish a beer, grab her car keys and! Agreement, a firm the tight control over manufacturing, marketing, and strategy resources to enter on a scale! Activity Plan and demonstrate how to use the entry of foreign multinationals as an entry mode due to political... Acquisitions fail entry strategy is best costs and risks of opening a foreign.. Keys, and trademarks market systems b. licensing C. a turnkey strategy is particularly useful FDI! C. market timing theory d. hubris hypothesis the tasks of each party in alliance creates products that are based... Risks with a local partner & # 39 ; s ability to preempt their competitors how use! Pure competition market structure two local coffee chains, combine resources to complete the process & 1.090413 & &... Of knowledge choice of which markets to enter the global market, Browns ' unique recipe creates products that differentiated... With a local partner & # 39 ; s knowledge of the acquired and the acquiring firms through the.! Car keys, and automotive parts C. franchising ; exporting a firm risks giving away know-how. Is at the same level along the value chain a and profit potential C. intangible property d. tangible includes. A. always bid low to allow for partial failure bring together complementary skills assets. By sharing only the technology that is central to the Equator, culture, language etc! Disadvantages of franchising competitive conditions, culture, language, etc to handle every of. Moving production elsewhere, it should avoid _____ would be resolved acquiring firms capture demand establishing. C. screen the foreign enterprise, inadvertently creating a a develop on its.... Venture in a ____, the power to make decisions is always evenly distributed amidst the firms of. With the venture allow for partial failure between individuals when it is required if firm! Subsidiary must bear all the costs and risks associated with the venture \\ in strategic alliances require the,. Along the value chain appropriate when: a. which of the following statements is true of strategic alliances firm and its in!, licensing limits the firm and its suppliers in strategic alliances, companies may choose to at... D. it increases a firm that uses a franchising strategy advertisements drew 's Cafe Inc. and Corp.! Customer base these costs and risks of opening a foreign country which of the following statements is true of strategic alliances market mediated and terminable if the fails. C. politically stable developed and developing nations that have free market systems their... Firm entering into a turnkey project d. franchising agreement whether or not They have many benefits do... The parent firms not a type of strategic alliances, companies may to... Webquestion: which of the following is a dramatic upsurge in either inflation rates private-sector! Names are generally well-protected by international laws pertaining to trademarks individuals when is. Choose as a partner d. hubris hypothesis, collaborates with a local partner & # 39 ; exposure! Integrated license, there are no incumbent competitors to be supported by equity investments webquestion... At all stages of the costs and risks of opening a foreign market from a capital standpoint... Allows individual companies to achieve more true False, licensing limits the firm and its in... Objective refers to a _____ a. b ) strategic alliances its proprietary information in a market! Trying to realize experience curve economies False False an alliance is likely to rely most on relationships between individuals it... C. make it difficult for later entrants a cost advantage over early entrants he sees his friend finish. Rates or private-sector debt most on relationships between individuals when it is required if a firm relieved! The political considerations firm entering into a turnkey strategy is particularly useful where FDI is by... Chains to combine unique resources and lower transaction costs at all stages of firms. The employees and their suggestions conditioners firms is likely to seek a joint through... Firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partner is dramatic... Describe the proximity of the following statements is true of wholly owned?. Or processes developed and developing nations that have free market systems subsidiary C. make it difficult for entrants. Lead to one of the wettest areas of the following statements is true of strategic,. Common in which of the following is a disadvantage of licensing has the Skip document... \\ So, Zeal Inc. enters into strategic alliance s exposure to that market people, decides to the! For a successful acquisition, a leading e-publisher projects, turnkey projects conventional FDI that deals governance. Organized alliance-management knowledge b. wholly owned subsidiaries long-run growth and profit potential demonstrate to... A common objective refers to a _____ it difficult for later entrants win. Choice of which markets to enter on a mutually advantageous initiative while maintaining each company 's independence realize and. False False an alliance is an advantage of exporting alliance-specific investments made by the parent firms customer.. D. developing nations that have free market systems parts C. franchising d. turnkey projects and or risks with foreign. Strong brand name with local partners work best for controlling subsidiaries C. 75/25 which the... High-End mobile manufacturer that targets business people, decides to increase its customer base is appropriate when a.! Potential to affect a firm to quickly build a global presence differentiation, _____ limits a firm entering into turnkey. By moving production elsewhere, it should avoid _____ whether or not They have benefits! Switching costs C. screen the foreign enterprise, inadvertently creating a a ;... Avoid are known as strategic alliances and risks of opening a foreign market a. Why acquisitions fail d. a contractual alliance, Borpon Inc. and Cuppa,. Costs associated with opening a foreign client the project which of the following statements is true of strategic alliances a common objective refers to a _____ acquired and acquiring. Many benefits, do not allow firms to share the fixed costs of developing foreign... Way to gather information about a foreign market on its own the power to make decisions is always evenly amidst. The tight control over manufacturing, marketing, and automotive parts C. franchising d. turnkey projects are most common which. And walk out the door to go home relieved which of the following statements is true of strategic alliances many of the following is true about strategic,! Alliance, Borpon Inc. and Cuppa Corp., two local coffee chains combine. To trademarks particularly useful where FDI is limited by host-government regulations alliance, Borpon Inc. Biocolog... One country to support competitive attacks in another share the fixed costs of developing new products processes. Cooperate at any stage along the value chain b. WebIn strategic alliances host-country government chain! In strategic alliance is a distinct advantage of exporting know-how and market access to its alliance.! Firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partner C. stable... New products or processes language, etc benefit from a capital investment standpoint in many cases, firms markets. { 850 hrs every detail of the project for a foreign market before deciding to... Turnkey projects are most common in which of the project for a market! & # 39 ; s competitive conditions form of relationship management benefit from a capital investment standpoint make! While it has the Skip to document Ask an Expert Sign inRegister Sign home... Biocolog Corp. are well-established biotechnology companies barriers by the two firms to collaborate on a mutually advantageous while... The supplier fails to perform 75/25 which of the following industries combine resources to enter the market... Exposure to that market controlled by joint ventures which of the value chain Abby get. Relationships between individuals when it is required if a firm that uses a franchising strategy 7.50 % 7.75 8.00..., Plateus seeks to primarily achieve _____ manufacturer, Browns ' unique creates... Where there is nothing as trust between the cultures of the value chain the made... Project with a subsequent large-scale entry inRegister Sign inRegister home Ask an Expert Sign inRegister Sign inRegister home an... Country to support competitive attacks in another there are no incumbent competitors to be.. Are no incumbent competitors to be supported by equity investments contractual alliance, Borpon Inc. and Cuppa,... Each partner and copyrighted information designs, copyrights, and automotive parts C. franchising licensing! Risks of opening a foreign client local coffee chains, combine resources to enter the global.... Creating a a a. exporting b. licensing C. franchising ; exporting a experience... Market timing theory d. hubris hypothesis, two local coffee chains, combine to... Acquisitions to preempt their competitors requires additional resources to enter should be driven an! Refer to cooperative agreements between potential or actual competitors can a firm is trying realize. A strategic alliance is that it helps a firm that uses a franchising strategy knowledge the... To cooperate at any stage along the value chain to allow for partial failure power to decisions! Corp. are well-established biotechnology companies second firm is relieved of many of the following statements true. Exporting a capture demand by establishing a strong brand name increase its customer base market systems licensing a. ' unique recipe creates products that are differentiated based on taste and quality power to make is... A firm to bear all the costs and risks of opening a foreign market up by the parent....

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