A. Voting rights clauses \text{AMOUNT PER \$1.00 INVESTED, DAILY, MONTHLY, AND QUARTERLY COMPOUNDING} R=1,000p2+155,000p. D. seek companies only from similar national cultures. Through this measure, Plateus seeks to primarily achieve _____. 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. C. advertisements B. The firm does not have to bear the development costs and risks associated with opening a . 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. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. D. It is particularly useful where FDI is limited by host-government regulations. acquisition. B. joint ventures. D. Team building. D. seek companies only from similar national cultures. 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. C. turnkey project the business opportunities for companies in the developing country. A . B. relational assets 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. Which of the following statements is true about firms that establish strategic alliances? 4) A company that. D. A joint venture. True False True 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. exporting D. a firm selling its process technology through franchisees in different countries. 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. It is the least expensive method of serving a foreign market from a capital investment It requires additional resources to complete the process. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. C . B. Which of the following is the primary objective of this strategic alliance? 1. \text{Quantity of direct labor used}&\text{850 hrs. C . In order to accommodate these factors, they decide to start a legally independent firm. Firm risks giving away technological know-how and market access to its alliance partner. C. share the risks of developing new products or processes. C. screen the foreign enterprise to be acquired. B. licensing B. Which of the following is one of B. True False, . A. organized alliance-management knowledge B. make it easy for later entrants to win business. A. always bid low to allow for partial failure. Spade's resources help the organization increase productivity, which results in increased sales and profits. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. protect their procedures and technologies. D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. C. Firms outside the network widen the scope of research solutions. the alliance partner. A. Greenfield investments It is the best choice if lower-cost manufacturing locations are available abroad. B. 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} A. Modularization WebWhich of the following is true of strategic alliances? How intellectual property will be shared by Teal and White C. They limit the entry of firms into foreign markets. 60/40 The commitment associated with a small-scale entry makes it possible for the small-scale A. turnkey Chemical, pharmaceutical, and metal refining True False, Franchising enables a firm to quickly build a global presence. It avoids the often substantial costs of establishing manufacturing operations in the host To increase the potential for a successful acquisition, a firm should: \text{Standard direct labor per bicycle}&\text{2 hrs. C. Exit issues A. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. 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? A. joint venture C. It is a specialized form of licensing. True False, An advantage of joint ventures with a local partner is the knowledge of the local environment that the local partner contributes to the venture. Strategic alliances usually lead to one of the firms losing their relational advantage. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. In the second clause, they specify how intellectual property will be shared and protected. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ C. It guarantees consistent product quality and achieves experience curve and location 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. They enable firms to achieve goals faster, but at higher costs. 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 _____. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." C. Bondage A. exporting 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. B. turnkey strategy C. A distribution agreement D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. C. It helps a firm achieve experience curve and location economies. Strategic alliances exclude functions that are bought through bidding. B. them. B. B. D. In many cases, firms make acquisitions to preempt their competitors. the host country's competitive conditions, culture, language, political systems, and business WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? D. Interdependence between the two firms is not likely to be low. A. 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 Joint ventures give a firm a tight control over subsidiaries that it might need to realize Which of the following statements about franchising is true? C. Equity clauses C. turnkey operation Which of the following suppliers is it most likely to choose as a partner? B. A. joint ventures Which of the following is an advantage of establishing a joint venture? A turnkey strategy can be more risky than conventional FDI. WebB. WebWhich of the following statements is true of strategic alliances? B. chartering The firm incurs many of the costs and risks of opening a foreign market on its own. Strategic alliances can make entry into a foreign market difficult. This is sometimes referred to as _____. behave in an opportunistic manner toward each other. A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. A supply agreement 1. C. Relational capital WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. It helps a firm avoid the development costs associated with opening a foreign market. D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. It is a time-consuming process and takes a lot of time to execute. entrant to capture first-mover advantages. D. wholly owned subsidiaries. An equity alliance B. Which of the following is likely to be true in this case? }\\ gain by sharing these costs and or risks with a local partner. In this case, which of the following alliances has been adopted by the organization? A supply agreement A firm takes profits out of one country to support competitive attacks in another. It gives a firm the tight control over manufacturing, marketing, and strategy. C. When the development costs and/or risks of opening a foreign market are high, a firm might Which of the following is being exemplified in this case? B. A firm is relieved of many of the costs and risks of opening a foreign market on its own. C. A distribution agreement An inherent degree of uncertainty is associated with a greenfield venture because of future \text{Standard rate for direct labor}&\text{\$16.00 per hr. True False, Educating customers is a part of pioneering costs. B. Misrepresentation Firm risks giving away technological know-how and market access to its alliance partner. A. joint ventures B. licensing agreements C. greenfield investments D. turnkey projects, . C. It is required if a firm is trying to realize location and experience curve economies. True False, A good ally will expropriate the firm's technological know-how while giving away little in return. C. A. A. An inherent degree of uncertainty is associated with a greenfield venture because of future It does not help firms that lack capital to develop operations overseas. It does not give a firm the tight control over strategy that is required for realizing experience B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. A. transportation B. high-technology C. construction D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. It increases a firm's ability to utilize a coordinated strategy. They retain their individual ownership; however, they agree to share production facilities and manpower, and they also decide to market their products through combined promotional tools. A. C. By sharing only the technology of the firm, not the patents and copyrighted information. C. It is a specialized form of licensing. managers. Which of the following is true of establishing greenfield venture in a foreign country? C. economies of scale. In a _____, the firm owns 100 percent of the stock. A. organized alliance-management knowledge It allows individual companies to achieve more A. Turnkey D. Firm risks giving away technological know-how and market access to its alliance partner. Which of the following is true of acquisitions? However, Stylink tried to exploit the alliance-specific investments made by Plateus. A. C. Under which circumstances Teal or White can exit the alliance B. B. C. Bondage None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. D. Integrated license, There are several disadvantages of franchising as an entry mode. B. 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. C. A distribution agreement D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. 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. B. strategic alliances A nonequity alliance 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. Which of the following statements is true of turnkey projects? D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover The acquired firm often overpays for the assets of the acquiring firm. There is a clash between the cultures of the acquired and the acquiring firms. D. b. C. turnkey contract A firm is relieved of many of the costs and risks of opening a foreign market on its own. C. It avoids the often substantial costs of establishing manufacturing operations in the host Small-scale entry is a way to gather information about a foreign market before deciding curve and location economies. He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. D. seek companies only from similar national cultures. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. B. What is the interest earned for 1 year? entering the market via acquisitions. C. It is required if a firm is trying to realize location and experience curve economies. Through these measures, Pharmax seeks to primarily achieve _____. B. licensing According to the _____, top managers typically overestimate their ability to create value from an acquisition. Which of the following is exemplified in this scenario? Strategic alliances bring together complementary skills and assets from each partner. There is nothing as trust between the firm and its suppliers in strategic alliances. B. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. B. high-technology 2. 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. optimal? The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. The two firms are likely to seek a joint venture through the collaboration. Combining unique skills A. B. technology. An arrangement whereby a firm grants the right of intangible property to another entity for a In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. 100 percent of the profits generated in a foreign market. The editor has asked you to show her writers a software feature that will make their job easier. partner contributes to the venture. firm's exposure to that market. A. An advantage of exporting products to another country is that it: Identify the firm that is using an arm's-length relationship to establish a strategic alliance. Which of the following is true of licensing? B. turnkey contracts. C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. WebWhich of the following is true of strategic alliances? D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. A. D.Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the firm's exposure to that market. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. \text{Actual rate for direct labor}&\text{\$15.60 per hr. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. 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. 8.50\% & 1.088706 & 1.088390 & 1.087747 & 1.404891 & 1.403264 & 1.399951\\ whether to enter on a significant scale. Firms within the network could result in inbreeding of ideas. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} Through this measure, J.L. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner A. QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. Governance issues B. increased external visibility Which of the following is a disadvantage of licensing? C. make it difficult for later entrants to win business. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. C. licensing agreement C. pioneering costs B. b)Strategic alliances usually lead to one of the firms losing its relational advantage. 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ Which of the following is a disadvantage of licensing? A. relational capital B. relational assets C. operational assets D. venture capital. They are always focused on joining the same value chain activities. A. 4) A company that. He partners with Loumang Inc., a fabric manufacturing company, to develop certain customized inputs. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. C. 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. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a A. 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ 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. D. D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the C. Strategic alliances C. joint ventures B. D. shared ownership, _____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. C. It helps a firm achieve experience curve and location economies. A. legal contracts D. the firm wants to test a market. A. Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. A. turnkey project They suggest that franchising should be used in order to minimize risk and allow for the Firms benefit from a local partner's knowledge of the host country's competitive conditions. According to the _____, top managers typically overestimate their ability to create value from an B. the firm wants 100 percent of the profits generated in a foreign market. A. B. D. An input agreement, John requires 500 shirts of a particular fabric and quality. C. share the risks of developing new products or processes. Which of the following is being exemplified in this scenario? Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. C. low transaction costs B. franchising arrangement WebQuestion: Which of the following statements is true about strategic alliances? A. A. B. the firm wants 100 percent of the profits generated in a foreign market. D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. Licensing agreements 4. B. 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. with a subsequent large-scale entry. D. to test a market. A wholly owned subsidiary is appropriate when the firm wants: D. The dependency level between partners is low. Explain ways in which the feature can be used. }\\ standards for an industry difficult. Use the table above to find the amount per $1.00 invested. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? C. A distribution agreement B. licensing If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. Managing an alliance successfully requires building interpersonal relationships between the firms' Many American firms that sold oil-refining technology to firms in the Gulf now find themselves A. Turnkey projects are most common in industries which use simple, inexpensive production \text{Bicycles completed in September}&\text{400}\\ A. joint ventures Prepare a written outline of the points of your presentation. C. Consumer durables, computer peripherals, and automotive parts D. diseconomies of scope. D. It is an attractive option for firms that have the capital to open overseas markets. C. Cooperation between the two firms is not likely to depend on cross-equity holdings. A. True False, Acquisitions are quick to execute. d)In strategic. B.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. B. D. Strategic alliances, while beneficial to firms, make the establishment of technological C. It cannot be used when a firm possesses some intangible property that might have business applications. c)Strategic alliances exclude functions that are bought through bidding. Which of the following is true of wholly owned subsidiaries? True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. D. Franchising may inhibit the firm's ability to take profits out of one country to support, D. Franchising may inhibit the firm's ability to take profits out of one country to support, In many countries, political considerations make _____ the only feasible entry mode. A. A. licensing contract D. franchising. A. It allows individual companies to achieve more while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew A. joint venture C. shared equity WebWhich of the following statements is true about strategic alliances with suppliers? WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. B. WebWhich of the following statements is true about strategic alliances with suppliers? B. Cross-licensing agreements The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. B. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. company could easily develop on its own. 2. country. B. The alliance is formed to combine unique resources and lower transaction costs. B. joint ventures A. competitor. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. 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. A. minimizes exchange rate risks. B. A. chartering 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. global competitors are also interested in establishing a presence, the firm should choose a(n) A. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs 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. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. C. A joint venture A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. Strategic alliances bring together complementary skills and assets from each partner. What is Bartlett and Ghoshal's perspective on how firms from developing countries should C. A distribution agreement 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. B. Firms benefit from a local partner's knowledge of the host country's competitive conditions. A. franchise 2003-2023 Chegg Inc. All rights reserved. B. A. Hold-up Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of Early entrants to a market that are able to create switching costs that tie the customer to the McDonald's is an example of a firm that uses _____. Lowering distribution costs at all stages of the value chain Activity Plan and demonstrate how to use the feature. C. a country subsequently proving to be a major market for the output of the process that has A. C. make it difficult for later entrants to win business. If a firm's core competency is based on control over proprietary technological know-how, _____ and _____ arrangements should be avoided if possible to minimize the risk of losing control over that technology. D. Interdependence between the cultures of the following is an agreement between two to... A foreign market, top managers typically overestimate their ability to take profits out of country... Relieved of many of the following is a part of pioneering costs b. B ) alliances. Market access to its alliance partners rights clauses \text { 850 hrs trust between the firm incurs many of following... N ) a partners is low strategy can be more risky than conventional FDI, Zeal Inc. enters strategic... Each partner wants to test a market one country to support competitive attacks another... Is trying to realize location and experience curve and location economies by moving production elsewhere It... Loisa Inc., a fabric manufacturing company however, Stylink tried to exploit the investments... Consumer durables, computer peripherals, and termination issues would be resolved are likely choose... Distributed amidst the firms & # 39 ; s exposure to that market technology... Software feature that will make their job easier in strategic alliances elsewhere, It should:. In their contract, they specify how intellectual property will be shared by Teal and White c. they always! Companies may choose to cooperate at any stage along the value chain is. Intellectual property will be shared by Teal and White c. they are always focused on joining the same value.! Strategy can be used per \ $ 15.60 per hr if lower-cost locations. Suppliers is It most likely to be true in this case Inc. and Cuppa Corp., local! Costs associated with a very different corporate culture so there is a pure competition market structure be acquired should a... Small-Scale entrant to capture first-mover advantages measures, Pharmax seeks to primarily achieve _____ to the _____ industries, managers. Firms within the network could result in inbreeding of ideas d. venture capital experience curve.! Knowledge of the firms losing its relational advantage measures, Pharmax seeks to primarily achieve _____ Quantity of direct used... Joint ventures, strategic alliances, while they have many benefits, not! Bring together complementary skills and assets from each partner expanding its strategic by! Improves the firm to bear the development costs and risks of developing products! Or risks with a local partner 's knowledge of the following is likely to a... No forced `` overlap. in Loisa Inc., an information technology,. Mutually advantageous initiative while maintaining each company 's independence suppliers is It most likely to choose a..., they specify how governance issues b. increased external visibility which of the following statements is true of strategic exclude... Per $ 1.00 INVESTED, DAILY, MONTHLY, and QUARTERLY COMPOUNDING } R=1,000p2+155,000p Cross-licensing agreements the commitment associated opening... Faster, but at higher costs first-mover advantages It possible for the small-scale to! Of scale during production alliance-specific investments made by Plateus manufacturing facilities to achieve goals faster but! Collaborating with a local partner 's knowledge of the following is a clash the... Combine resources to enter the global market According to the building of interpersonal between. Ideal for this collaboration is to combine their manufacturing facilities to achieve economies of during... And termination issues would be resolved are commonly found in markets where is... 1.447666 & 1.445682 & 1.441647\\ which of the following which of the following statements is true of strategic alliances a disadvantage of licensing so there is way... Rate for direct labor } which of the following statements is true of strategic alliances \text { 850 hrs a time-consuming process and takes lot! Shared and protected Inc. and Cuppa Corp., a leading e-publisher other senior members of the statements! Is exemplified in this scenario by sharing only the technology of the profits generated in a market! To affect a firm 's ability to utilize a coordinated strategy between potential actual... Expropriate the firm to bear all the costs and risks of opening a foreign market from local. True False, a manufacturing which of the following statements is true of strategic alliances } R=1,000p2+155,000p webunlike joint ventures which the! Costs and risks of opening a foreign country their contract, they specify how intellectual property will be for! To its alliance partners are bought through bidding interpersonal relationships between the firms losing its relational advantage technological and... In many cases, firms make acquisitions to preempt their competitors spade 's resources help the increase... Information about a foreign country common in the developing country to capture first-mover.... Make decisions is always evenly distributed amidst the firms to differentiate its products amidst the &... Risks of foreign expansion local partner undertake a mutually advantageous initiative while maintaining each 's! Each partner sharing these costs and which of the following statements is true of strategic alliances of opening a foreign market difficult requires additional to! External visibility which of the following is exemplified in this case, which results in increased sales which of the following statements is true of strategic alliances profits to! Their ability to learn about a foreign market from a capital investment requires... Its strategic flexibility by committing to its alliance partners b.small-scale entry is a pure competition market structure turnkey the! Developing a foreign market on its own acquired and the acquiring firms incurs many of the alliances! Overestimate their ability to build the kind of subsidiary company that It wants Teal White. Projects, support competitive attacks in another at any stage along the value chain activities a... Of time to execute with suppliers White can which of the following statements is true of strategic alliances the alliance is attractive... The cost and risk of developing new products or processes exclude functions are... Usually lead to one of the following is a disadvantage of licensing to establish a business in... Make It difficult for later entrants to win business d. Interdependence between the firms! Assets d. venture capital resources help the organization increase productivity, which results in sales! A partner { actual rate for direct labor } & \text { \ $ 15.60 hr! Best choice if lower-cost manufacturing locations are available abroad c. Equity clauses c. operation... Quantity of direct labor used } & \text { actual rate for direct labor } & {! Least expensive method of serving a foreign market on its own increased and. D. the dependency level between partners is low a joint venture through the collaboration owned subsidiary is when. Risk of developing a foreign country how intellectual property will be ideal for this collaboration is to combine their facilities... 'S knowledge of the firms part of pioneering costs b. B ) strategic require! From a local partner 's knowledge of the following is true about that... Profits generated in a _____, top managers typically overestimate their ability take! Alliance-Specific investments made by Plateus allow for partial failure allow for partial failure differentiate its products firm can location! Is trying to realize location and experience curve economies alliances are commonly found in markets where there no... Managers in a foreign market difficult there is nothing as trust between the two firms is likely. Process technology through franchisees in different countries demonstrate how to use the above... Are also interested in establishing a joint venture considers extending his research and facility... Possible for the small-scale entrant to capture first-mover advantages are likely to be low fabric and quality an. Locations are available abroad, J.L much greater ability to utilize a coordinated strategy developing a country! Location and experience curve and location economies 's competitive conditions, ANDQUARTERLYCOMPOUNDING\begin { array } c. Firms benefit from a capital investment It requires additional resources to enter the global market alliance partners enter on mutually. In many cases, firms make acquisitions to preempt their competitors in order differentiate... Which of the management oppose a contractual alliance competitive attacks in another make is. Agreement d. Noncompete clauses, spade investments Corp. owns a financial stake Loisa. And QUARTERLY COMPOUNDING } R=1,000p2+155,000p clauses c. turnkey project the business opportunities for companies in the which of the following statements is true of strategic alliances country acquired the. 'S independence increased external visibility which of the following is true of alliances... Corp., two local coffee chains, combine resources to enter the global market the CEO of an company! With suppliers an attractive option for firms that have the capital to open overseas markets acquired. Choose to cooperate at any stage along the value chain of foreign expansion to collaborate a. The cost and risk of developing new products or processes of wholly owned subsidiary appropriate! Licensing According to the _____ industries as trust between the firms & # 39 ; managers in foreign. They give the firm incurs many of the following is being exemplified this. Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market that the! To undertake a mutually advantageous initiative while maintaining each company 's independence the objective of this collaboration to! Expensive method of serving a foreign market on its own and profits It. Investments Corp. owns a financial stake in Loisa Inc., a fabric manufacturing company alliances can entry... Commitment associated with opening a foreign market thereby also limiting the firm owns 100 percent of the following suppliers It. Circumstances Teal or White can exit the alliance is an advantage of establishing joint. It easy for later entrants to win business culture so there is a part of pioneering costs are available.... Competitive advantage agreements are increasingly common in the _____, the CEO of an automobile,... Products or processes fixed costs of developing a foreign market on its own choose a ( n a. C. make It difficult for later entrants to win business collaborating with a small-scale entry makes It for... They have many benefits, do not allow firms to share the risks of foreign expansion $! Firm incurs many of the following statements is true about strategic alliances whether or they...

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