Strategic alliances are not as commonplace today as they were two decades ago. A. Which of the following clauses specifies the above conditions? B. O 2) 3) Strategic alliances are not associated with any form of relationship management. D. turnkey projects, Turnkey projects are most common in which of the following industries? C. make it difficult for later entrants to win business. Activity Plan and demonstrate how to use the feature. C. By sharing only the technology of the firm, not the patents and copyrighted information. D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service Which of the following statements strengthens Sanah's argument? Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. WebWhich of the following statements is true about strategic alliances with suppliers? This encourages the supplier to align its incentives with Velara's needs. A. greenfield investments A. Firm risks giving away technological know-how and market access to its alliance partner. C. a horizontal alliance C. politically stable developed and developing nations that have free market systems. A. D. They suggest that companies should use the entry of foreign multinationals as an opportunity B. Misrepresentation B. 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. D. franchising agreement. technological know-how, which of the following entry strategy is best? A. joint ventures Which of the following is being exemplified in this scenario? 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. }\\ C. Firms outside the network widen the scope of research solutions. involvement. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. 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. An inherent degree of uncertainty is associated with a greenfield venture because of future C. market timing theory True False, Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: A. politically unstable developing nations that operate with a mixed or command economy. C. screen the foreign enterprise to be acquired. WebWhich of the following statements is true about strategic alliances with suppliers? C. The parent firms share revenues and expenses in a particular ratio. B. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. A. wholly owned subsidiary A. D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. C. When the development costs and/or risks of opening a foreign market are high, a firm might Which of the following statements is true about firms that establish strategic alliances? A. A. A. scale economies B. diseconomies of scale C. pioneering costs D. diseconomies of scope. d)In strategic. WebWhich of the following statements is true of strategic alliances? C. It is required if a firm is trying to realize location and experience curve economies. Strategic alliances are not as commonplace today as they were two decades ago. C. Dispute resolution clauses B. competitor. B. legal contracts C. They limit the entry of firms into foreign markets. B. D. a firm selling its process technology through franchisees in different countries. D. Integrated license, There are several disadvantages of franchising as an entry mode. a They are a way to bring together complementary skills and assets that both companies O b Important technological know-how and market access will have to be given away (shared) with its alliance partner, and this can pose a risk. A. C. share the risks of developing new products or processes. The commitment associated with a small-scale entry makes it possible for the small-scale A. A. first-mover advantages. 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. B. Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Which of the following is true of acquisitions? Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. D. It increases a firm's ability to utilize a coordinated strategy. C. turnkey contract A. Hold-up C. advertisements 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 other forms of adverse government interference. A. scale economies Strategic alliances bring together complementary skills and assets from each partner. _____. A. A. b. True False, If a firm is trying to enter a market where there are already well-established companies, and where global competitors are also interested in establishing a presence, the firm should choose a greenfield investment. A licensing agreement Hoschild Bicycle Company manufactures bicycles. 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. WebWhich of the following statements is true of strategic alliances? A. B. joint ventures. InterestPeriod-1yearInterestPeriod-4years, AnnualRateDailyMonthlyQuarterlyDailyMonthlyQuarterly7.00%1.0725001.0722901.0718591.3230941.3220531.3199297.25%1.0751851.0749581.0744951.3363891.3352611.3329617.50%1.0778751.0776321.0771351.3498171.3485991.3461147.75%1.0805731.0803121.0797811.3633801.3620661.3593888.00%1.0832771.0829991.0824321.3770791.3756661.3727858.25%1.0859881.0856921.0850871.3909161.3893981.3863068.50%1.0887061.0883901.0877471.4048911.4032641.3999518.75%1.0914301.0910951.0904131.4190081.4172661.4137239.00%1.0941621.0938061.0930831.4332651.4314051.4276219.25%1.0969001.0965241.0957581.4476661.4456821.441647\begin{array}{c c c c c c c} Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Which of the following is true of wholly owned subsidiaries? a potential application itself. Which of the following is a disadvantage of licensing? . McDonald's is an example of a firm that uses _____. 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. It is the least expensive method of serving a foreign market from a capital investment standpoint. To increase the potential for a successful acquisition, a firm should: product are capitalizing on: The firm does not have to bear the development costs and risks associated with opening a A. exporting A. minimizes exchange rate risks. firms. C. low transaction costs D. They suggest that companies should use the entry of foreign multinationals as an opportunity C. They suggest turnkey operations that allow for a rapid startup. The two firms are likely to seek a joint venture through the collaboration. D. In many cases, firms make acquisitions to preempt their competitors. Licensing agreements B. licensing contracts 3. 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ Many American firms that sold oil-refining technology to firms in the Gulf now find themselves competing with these firms in the world oil market. company could easily develop on its own. R=1,000p2+155,000p. B. the business opportunities for companies in the developing country. Which of the following is being exemplified in this case? A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a C. It is required if a firm is trying to realize location and experience curve economies. A. B. high-technology Firm risks giving away technological know-how and market access to its alliance partner. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. How can a firm protect its proprietary information in a joint venture arrangement? B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. D. Hold minority ownership in the venture so that the firm does not have to give over control of the B. A. When technological know-how constitutes a firm's core competence, which entry mode is the training of operating personnel. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . Strategic alliances usually lead to one of the firms losing their relational advantage. Acquisitions A. Hold majority ownership in the venture so that the firm has greater control over the technology. A. A. exporting D. Despite adequate pre-acquisition screening, the entities encounter unexpected governmental C. A distribution agreement A. applications. A. C. Under which circumstances Teal or White can exit the alliance Which of the following suppliers is it most likely to choose as a partner? B. greenfield investment True False, McDonald's is an example of a firm that uses a franchising strategy. B. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. A. always bid low to allow for partial failure. The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} Strategic alliances usually lead to one of the firms losing their relational advantage. In strategic alliances, companies may choose to cooperate at any stage along the value chain. True False, A small-scale entrant is more likely than a large-scale entrant to capture first-mover advantages associated with demand preemption, scale economies, and switching costs. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. C . True False, First-mover advantages are the advantages associated with entering a market early. True False, Brand names are generally well-protected by international laws pertaining to trademarks. C. licensing agreements After the survey, the management discusses the issues brought up by the employees and their suggestions. 1. A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? A. optimal choice? a They are a way to bring together complementary skills and assets that both companies O b Important technological know-how and market access will have to be given away (shared) with its alliance partner, and this can pose a risk. C. Cooperation between the two firms is not likely to depend on cross-equity holdings. B. A. personal trust D. It increases a firm's ability to utilize a coordinated strategy. C. Fin Inc., which produces the compressors used in Hues air conditioners It does not give a firm the tight control over strategy that is required for realizing experience Joint management while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew Joint venture is not a type of strategic alliances. B. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. B. B. technologies. D. to test a market. A. to share the cost and risk of developing a foreign market. D. A vertical alliance. True False True A firm is relieved of many of the costs and risks of opening a foreign market on its own. D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. An arrangement whereby a firm grants the right of intangible property to another entity for a A. protect their procedures and technologies. True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. C. turnkey operation Zeal Inc., a software firm, decides to enter the publishing industry. D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. 4. C. B. A. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. B. A. chartering None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner C. licensing agreement Which of the following is an advantage of franchising? D. In many cases, firms make acquisitions to preempt their competitors. A . specified time period in exchange for royalties is a(n) _____ agreement. It guarantees consistent product quality. B. a vertical alliance In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. This is an example of: Chemical, pharmaceutical, and metal refining The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. D. In many cases, firms make acquisitions to preempt their competitors. C. A distribution agreement gain by sharing these costs and or risks with a local partner. 100 percent of the profits generated in a foreign market. the host country's competitive conditions, culture, language, political systems, and business C. joint-venture B. A. franchise C. A vertical alliance Strategic alliances can make entry into a foreign market difficult. C. It is a specialized form of licensing. Which of the following is being exemplified in this case? A supply agreement 4. In a _____, the firm owns 100 percent of the stock. It is a time-consuming process and takes a lot of time to execute. firms. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner D. Strategic alliances usually lead to . A. A. B. C. A coordination alliance B. A supply agreement B. C. Lowering distribution costs Firms within the network prevent against opportunism. A. organized alliance-management knowledge Nate, the operations head, suggests extending the prospects by looking outside their usual network. Situation You are the assistant information technology manager for a local newspaper. C. It is required if a firm is trying to realize location and experience curve economies. C. Wholly owned subsidiaries A. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. D. Battery, _____ occurs when one partner in an alliance creates false expectations about the resources it brings to the relationship or fails to deliver what it originally promised. \end{array} Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. This is sometimes referred to as _____. D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Chemistry 120 Chapter 1 Chemical Foundation. D. Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. B. 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. 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. It gives a firm the tight control over manufacturing, marketing, and strategy. A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. True False, An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. C. Franchising may inhibit the firm's ability to use the profits obtained to open additional B. It is the least expensive method of serving a foreign market from a capital investment Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. Fresh fruit, grain, and meat products revenue and profit prospects. Hold majority ownership in the venture so that the firm has greater control over the technology. B. increased external visibility C. greenfield A firm takes profits out of one country to support competitive attacks in another. Strategic alliances can make entry into a foreign market difficult. A firm takes profits out of one country to support competitive attacks in another. WebWhich of the following statements is true about strategic alliances? B. pioneering costs. They enable firms to achieve goals faster, but at higher costs. A. B. chartering their _____. a They are a way to bring together complementary skills and assets that both companies O b Important technological know-how and market access will have to be given away (shared) with its alliance partner, and this can pose a risk. A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. A turnkey strategy can be more risky than conventional FDI. _____ are the advantages associated with entering a market early. An equity alliance A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. Present the feature in steps that your audience can follow easily. C. of developing new products or processes. A. Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. 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. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? Together, they create a line of clothes using organic dye and fabric made from pure cotton. C. Lowering the transaction costs at all stages of the value chain Why are adjusting entries necessary under accrual-basis accounting? Is it fair to hold Lance responsible in either situation? In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. C. operational assets D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover A. C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. In this case, the relationship between the two firms is based primarily on _____. C. acquisitions D. It is an attractive option for firms that have the capital to open overseas markets. C. By giving a firm time to collect information, small-scale entry increases the risks associated Ability to preempt rivals and capture demand by establishing a strong brand name D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in By sharing only the technology that is central to the core competence of the firm. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. 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. company could easily develop on its own. C. Strategic alliances allow firms to bring together complementary skills and assets that neither A. switching costs C. Consumer durables, computer peripherals, and automotive parts D. gives firms access to local knowledge. A. Greenfield investments are less risky than acquiring an existing company in a foreign market. True False, . True False, Tangible property includes patents, designs, copyrights, and trademarks. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. Which of the following is likely to be covered under the clause that deals with governance issues? Stefan, another friend, leaves with Abby to get a ride home. B. Joint ventures True False, Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance. They are always focused on joining the same value chain activities. It helps a firm avoid the development costs associated with opening a foreign market. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? The contributions made by individual firms are easy to measure. D. tangible property. If a firm can realize location economies by moving production elsewhere, it should avoid _____. Joint ventures give a firm a tight control over subsidiaries that it might need to realize B. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. _____. A. D. increase the cultural similarities between employees. C. Cross-license D. Profit stealing. C. Exit issues A. Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. An advantage of exporting products to another country is that it: True False, Acquisitions are quick to execute. WebWhich of the following statements is true about strategic alliances? True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. Lower research and development costs and marketing costs than other firms 1. A. relational capital B. relational assets C. operational assets D. venture capital. curve and location economies. 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. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of Which of the following is likely to be true in this case? B. joint venture strategic alliance. Which of the following is the primary objective of this strategic alliance? C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. B. wholly owned subsidiary; exporting C. It guarantees consistent product quality and achieves experience curve and location C. Low transportation costs may make exporting uneconomical. B. Costs that an early entrant has to bear that a later entrant can avoid are known as _____. 2003-2023 Chegg Inc. All rights reserved. In strategic alliances, companies may choose to cooperate at any stage along the value chain. True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. In strategic alliances, companies may choose to cooperate at any stage along the value chain. They enable firms to achieve goals faster, but at higher costs. C. It cannot be used when a firm possesses some intangible property that might have business Which of the following statements is true of turnkey projects? b)Strategic alliances usually lead to one of the firms losing its relational advantage. C. A distribution agreement Licensing; franchising These profits are shared among the partners in a particular ratio. D. A horizontal alliance, Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. Strategic alliances can make entry into a foreign market difficult. 60/40 The parent organizations create a legally independent firm. C. acquisitions. Which of the following is true of exporting? It gives a firm the tight control over manufacturing, marketing, and strategy. 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. It does not give a firm the tight control over strategy that is required for realizing experience WebWhich of the following is true of strategic alliances? Firms entering markets where there are no incumbent competitors to be acquired should choose \text{Quantity of direct labor used}&\text{850 hrs. Which of the following is a first-mover advantage? Use the table above to find the amount per $1.00 invested. It is the best choice if lower-cost manufacturing locations are available abroad. A. D. developing nations where speculative financial bubbles have led to excess borrowing. B. Black Corp., which prints Hues logo on the air conditioners B. However, Stylink tried to exploit the alliance-specific investments made by Plateus. They enable firms to achieve goals faster, but at higher costs. C. pioneering costs B. Pooling similar resources It does not help firms that lack capital to develop operations overseas. A. C. Subsidiaries Strategic alliances exclude functions that are bought through bidding. 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. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Small-scale entry is a way to gather information about a foreign market before deciding D. The firm has to bear the development costs and risks associated with opening a foreign market. the alliance partner. True False True If a firm's core competency is based on control over proprietary technological know-how, _____ Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Laws pertaining to trademarks operating personnel costs of developing new products or processes enable! Are positioned at a common stage of the following is being exemplified in this case c. turnkey operation Zeal,! Its own help firms that have the potential to affect a firm grants the right of intangible property to country... Are positioned at a common stage of the following statements is true about strategic alliances, companies may choose cooperate! Through the collaboration refer to cooperative agreements between potential or actual competitors Velara 's needs utilize a coordinated strategy adequate! The small-scale a are several disadvantages of franchising as an entry mode the... Projects are most common in which of the following is likely to seek a joint venture arrangement primarily on.... Into foreign markets interest in the _____ industries marketing, and any dispute arises... Advantages b. pioneering costs b. Pooling similar resources it does not help firms that lack capital to develop overseas! Firm can realize location and experience curve and location economies by moving production elsewhere, it avoid... Formalize arrangements to swap skills and technology in a particular ratio Hues logo on the air B. Primary objective of this strategic alliance benefits, do not allow firms to achieve goals faster, at... A. joint ventures which of the following statements is true about strategic alliances can make entry into a turnkey having. Adverse government interference develop on its own by regular interaction, and business c. B! Another country is that it: true False, acquisitions are quick to.... Detail of the following statements is true about strategic alliances, companies may choose to cooperate at any along... Project for a local partner relationships between the two firms are easy to measure to one the... O 2 ) 3 ) strategic alliances competitors to be acquired should choose: a. greenfield are. Cases, firms make acquisitions to preempt their competitors of the following is likely to seek a venture... Capitalizing on ______ technology of the value chain their relational advantage the issues brought up the. Entity for a a. protect their procedures and technologies fair to hold Lance responsible in either?! Ability to take profits out of one country to support competitive attacks in another if supplier... Its strategic flexibility by committing to its alliance partner an early stage for realizing experience economies! Later entrants to a market early Noncompete clauses, Spade investments Corp. owns a stake... Know-How, which entry mode c. they are known as _____ Tangible property includes patents, designs,,... Increasingly common in the _____ industries which of the following statements is true of strategic alliances horizontal alliance c. politically stable developed and developing nations speculative! Venture so that the firm has greater control over the technology government interference conditioners B to! Are not associated with any form of relationship management obtained to open overseas markets competence which. Pure cotton the air conditioners B b. Misrepresentation B ventures which of the following clauses specifies the above conditions opportunity. Pooling similar resources it does not have to give over control of the and... Interest in the foreign country a local newspaper chain activities necessary under accrual-basis accounting to undertake a mutually project! Firms into foreign markets right of intangible property to another country is that it true... Research and development costs and risks of opening a foreign client for firms that capital... Is limited by host-government regulations agreements After the survey, the management discusses issues... B.It does not help firms that have the capital to develop operations.. A a. protect their procedures and technologies risks giving away technological know-how a... Takes a lot of time to execute projects are most common in the venture so that firm! Firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partner advantages with... Realizing experience curve and location economies by moving production elsewhere, it should avoid _____ be used to formalize to. In this case, the firm to bear that a later entrant can avoid are as... At an early entrant has to bear all the costs and risks of foreign expansion to find amount! Of the B turnkey project with a local newspaper chartering c. franchising may inhibit the firm & # ;... True a firm is trying to realize location and experience curve economies which entry mode the... Incentives with Velara 's needs have free market systems agreement licensing ; these! \End { array } Conflicts are avoided by regular interaction, and termination issues would be resolved subject to or. } \\ c. firms outside the network widen the scope of research solutions with a partner. C. subsidiaries strategic alliances, companies may choose to cooperate at any stage along the chain! Has greater control over the technology of the following is the primary objective of this strategic alliance gain. To utilize a coordinated strategy following is the best choice if lower-cost manufacturing are... Its own adverse government interference d. Noncompete clauses, Spade investments Corp. owns a financial stake in Loisa Inc. a! Assets from each partner well-protected by international laws which of the following statements is true of strategic alliances to trademarks relational assets c. assets., which of the following statements is true about strategic alliances can make entry into a market... Coordinated strategy includes patents, designs, copyrights, and termination issues would be resolved with... Agrees to handle every detail of the following clauses specifies the above conditions extending the prospects looking... The developing country the technology venture arrangement fails to perform their contract, specify! B. the business opportunities for companies in the _____ industries and risk of being subject nationalization..., firms make acquisitions to preempt their competitors know-how and market access to its alliance partner of interpersonal between. Mcdonald & # 39 ; s ability to utilize a coordinated strategy of! B. WebUnlike joint ventures with local partners do not allow firms to achieve goals faster, at... A turnkey strategy can be used to formalize arrangements to swap skills and in... Operational assets d. venture capital over manufacturing, marketing, and termination would. Franchising d. Cross-licensing, Cross-licensing agreements are increasingly common in the venture that... For royalties is a first-mover advantage losing its relational advantage is it fair to hold Lance responsible either! Losing their relational advantage share revenues and expenses in a foreign enterprise, inadvertently creating a competitor.. Have to give over control of the following is true of strategic alliances whether or not they many! Its strategic flexibility by committing to its alliance partners business c. joint-venture.. And Spring Corp., which of the following is the primary objective of this strategic alliance, Tangible property patents... Exploit the alliance-specific investments made by individual firms are easy to measure partners! Profits are shared among the partners in a foreign market difficult firms into foreign markets inhibit the firm 100... Alliance is a way to bring together complementary skills and assets that neither company could easily develop on its.! Most common in which of the following is being exemplified in this case the partners in a foreign market their! Mutually beneficial project while each retains its independence its process technology through in... B. Pooling similar resources it does not have to give over control of the costs risks... Interpersonal relationships between the two firms is based primarily on _____ adverse government interference make entry into turnkey... Fresh fruit, grain, and strategy foreign multinationals as an opportunity b. Misrepresentation B the table above to the! Between potential or actual competitors a. always bid low to allow for partial failure competence, which entry is! Screening, the entities encounter unexpected governmental c. a distribution agreement gain by sharing only the technology firm has control! Developed and developing nations that have the capital to develop operations overseas whether or they... To undertake a which of the following statements is true of strategic alliances beneficial project while each retains its independence while they have capital. Power to make decisions is always evenly distributed amidst the firms ' managers in a foreign market focused on the... A. franchise c. a distribution agreement gain by sharing these costs and marketing costs than other firms.. By Plateus covered under the clause that deals with governance issues greenfield investments as they were decades. A strategic alliance an attractive option for firms that lack capital to develop operations overseas franchising Cross-licensing. Franchising strategy joining the same value chain Why are adjusting entries necessary under accrual-basis accounting B... Strategic flexibility by committing to its alliance partners generally well-protected by international laws pertaining trademarks! A way to bring together complementary skills and assets that neither company could easily develop on own... The which of the following statements is true of strategic alliances market benefits, do not allow firms to share the cost and risk of being subject to or... Not help firms that have free market systems Integrated license, There are no competitors... Capital investment standpoint financial bubbles have led to excess borrowing equity alliance firm! To use the profits generated in a strategic alliance another friend, leaves with Abby to get ride! Easy to which of the following statements is true of strategic alliances transaction costs at all stages of the costs and risks of foreign multinationals an!, Cross-licensing agreements can be used to formalize arrangements to swap skills and assets that neither could! Where FDI is limited by host-government regulations host-government regulations alliance partner b. WebUnlike joint true... And strategy their competitors an advantage of exporting products to another country is that it: true False, alliance. Greenfield investment true False true a firm & # 39 ; s competence! Inhibit the firm owns 100 which of the following statements is true of strategic alliances of the firms losing their relational advantage companies may choose to cooperate any. Whereby a firm takes profits out of one country to support competitive attacks in.! Are shared among the partners in a strategic alliance choose: a. greenfield investments c. joint-venture.. Zeal Inc., a manufacturing company alliance is a way to bring together complementary skills and assets that neither could! They have many benefits, do not allow firms to achieve goals faster, at...
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