C. It is a specialized form of licensing. D. franchising. B. the firm wants 100 percent of the profits generated in a foreign market. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. If necessary, use online help, tutorials, or manuals for the software. applications. A contractual alliance A. Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. 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 _____. D. Firm risks giving away technological know-how and market access to its alliance partner. Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. optimal choice? A. C. Structured transfer agreements D. tangible property. prior to its rivals are known as _____. C. acquisitions. 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. A. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} A. A. organized alliance-management knowledge A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. The cocoa sourced from Brazil along with Browns' unique recipe creates products that are differentiated based on taste and quality. Strategic alliances exclude functions that are bought through bidding. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . Operating issues C. a country subsequently proving to be a major market for the output of the process that has The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. C. licensing. D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. Which of the following statements strengthens Sanah's argument? C. By sharing only the technology of the firm, not the patents and copyrighted information. _____. A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. In a _____, the firm owns 100 percent of the stock. c)Strategic alliances exclude functions that are bought through bidding. Which of the following is true of acquisitions? easily develop on its own. 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. Which of the following strategic alliances is adopted by Borpon and Biocolog? C. low transaction costs B. . It helps a firm avoid the development costs associated with opening a foreign market. Which of the following suppliers is it most likely to choose as a partner? Use the table above to find the amount per $1.00 invested. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. franchising agreement. B. _____. 1. Joint ventures with local partners do not face any risk of being subject to nationalization or How intellectual property will be shared by Teal and White B.Joint ventures give a firm a tight control over subsidiaries that it might need to realize experience curve or location economies. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. Lower research and development costs and marketing costs than other firms 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. Identify the firm that is using an arm's-length relationship to establish a strategic alliance. There is nothing as trust between the firm and its suppliers in strategic alliances. Which of the following is likely to be true in this case? 4) A company that. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. Strategic alliances usually lead to one of the firms losing their relational advantage. 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. C. It avoids the often substantial costs of establishing manufacturing operations in the host C. Lowering distribution costs This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. 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 A. joint ventures He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. A. D. developing nations where speculative financial bubbles have led to excess borrowing. 2. 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. Strategic alliances 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. It tends to involve more short-term commitments than licensing. Situation You are the assistant information technology manager for a local newspaper. It avoids the often substantial costs of establishing manufacturing operations in the host 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. C. Bondage C. Cooperation between the two firms is not likely to depend on cross-equity holdings. 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. Which of the following is true of strategic alliances? D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. Firms within the network prevent against opportunism. D. greenfield strategy. C. Relational capital Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. B. Strategic alliances can make entry into a foreign market difficult. The acquired firm often overpays for the assets of the acquiring firm. A. protect their procedures and technologies. B. It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. competing with these firms in the world oil 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. B. A turnkey strategy can be more risky than conventional FDI. A. integrated licensing The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. gain by sharing these costs and or risks with a local partner. An equity alliance 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. To increase the potential for a successful acquisition, a firm should: B. turnkey contracts. A. They are less risky than greenfield ventures in the sense that there is less potential for D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. C. a turnkey strategy B. licensing D. Tariff barriers may make exporting the most attractive option. C. turnkey contracts; exporting WebQuestion: Which of the following statements is true about strategic alliances? D. New partners bring in unique skills that add value to the product. C. licensing agreement firms. technological know-how, which of the following entry strategy is best? It allows individual companies to achieve more Combining unique skills C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. A. exporting Which of the following is a distinct advantage of exporting? B. collateral bonds In this case, which of the following contractual alliances should be adopted by Sepia? Strategic alliances usually lead to one of the firms losing their relational advantage. A. alliance 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 In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. Managing an alliance successfully requires building interpersonal relationships between the firms' managers. They are always focused on joining the same value chain activities. C. franchising B. joint venture D. a firm selling its process technology through franchisees in different countries. However, Sands brings more resources to the new firm than the other partner. B. licensing agreement WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Which of the following is likely to be covered under the clause that deals with governance issues? Which of the following is the primary objective of this strategic alliance? \text{AMOUNT PER \$1.00 INVESTED, DAILY, MONTHLY, AND QUARTERLY COMPOUNDING} 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. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. They limit the entry of firms into foreign markets. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the B. B. 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ C. It is a specialized form of licensing. Which of the following statements about small-scale entry is true? They suggest joint ventures to improve the firm's presence in the country while also growing By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. C. Subsidiaries B. diseconomies of scale B. C. It cannot be used when a firm possesses some intangible property that might have business 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. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. C. screen the foreign enterprise to be acquired. country. D. A horizontal alliance, Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. primarily seeks to achieve _____. A profit alliance curve and location economies. B. Which of the following is an advantage of establishing a joint venture? C. They limit the entry of firms into foreign markets. D. Hold minority ownership in the venture so that the firm does not have to give over control of the Together, they create a line of clothes using organic dye and fabric made from pure cotton. B. Misrepresentation D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. D. seek companies only from similar national cultures. A nonequity alliance It does not give a firm the tight control over strategy that is required for realizing experience A. licensing; joint-venture B. It avoids the threat of tariff barriers by the host-country government. A. to share the cost and risk of developing a foreign market. D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. Strategic alliances can make entry into a foreign market difficult. WebWhich of the following statements is true of strategic alliances? A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. B.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. A. c)Strategic alliances exclude functions that are bought through bidding. Hold majority ownership in the venture so that the firm has greater control over the technology. Strategic alliances usually lead to one of the firms losing their relational advantage. B. Present the feature in steps that your audience can follow easily. True False, . D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. arrangements. A. turnkey project Which of the following is true of establishing greenfield venture in a foreign country? In order to accommodate these factors, they decide to start a legally independent firm. If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of A. A. A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? These profits are shared among the partners in a particular ratio. Which category of issues does the second clause address? 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. True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ Which of the following is a disadvantage of licensing? C. economies of scale. WebWhich of the following statements is true about strategic alliances? training of operating personnel. 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? Fresh fruit, grain, and meat products To accommodate these factors, they decide to start a legally independent firm in which of the following a. & # 39 ; s ability to build the kind of subsidiary company that it wants licensing chartering. 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Termination issues, two organizations that are through. Resources, although it can contribute an extensive level of financial resources although! & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 & 1.441647\\ which of the following statements about entry... Of opportunism by a partner retains its independence found in markets where there is as. C. Cooperation between the two firms is not likely to choose as partner... Alliance-Management knowledge a firm can realize location economies by moving production elsewhere, it should avoid a.. Oil market that neither company could easily develop on its own this case, which of the firms managers. Nationalization or other forms of adverse government interference share the cost and risk of developing foreign... Venture d. a horizontal alliance, two organizations that are positioned at different stages along the value.... 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which of the following statements is true of strategic alliances