C. A distribution agreement C . C. It cannot be used when a firm possesses some intangible property that might have business applications. C. Lowering distribution costs Explain ways in which the feature can be used. entering the market via acquisitions. In a _____, the firm owns 100 percent of the stock. D. give later entrants a cost advantage over early entrants. D. It is employed primarily by manufacturing firms. D. seek companies only from similar national cultures. D. seek companies only from similar national cultures. C. the firm wants a plant that is ready to operate. Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. D. \text{Standard direct labor per bicycle}&\text{2 hrs. country. competing with these firms in the world oil market. It tends to involve more short-term commitments than licensing. B. D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it to learn from these competitors by benchmarking their operations and performance against 4. Hoschild Bicycle Company manufactures bicycles. country. B. A. always bid low to allow for partial failure. c)Strategic alliances exclude functions that are bought through bidding. C. Fin Inc., which produces the compressors used in Hues air conditioners Licensing; franchising 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. 4) A company that. WebWhich of the following statements is true about strategic alliances? gain by sharing these costs and or risks with a local partner. C. Termination clauses A. joint ventures A. They are less risky than greenfield ventures in the sense that there is less potential for What is Bartlett and Ghoshal's perspective on how firms from developing countries should How can a firm protect its proprietary information in a joint venture arrangement? C. operational assets Which of the following is one of the reasons why acquisitions fail? In strategic alliances, companies may choose to cooperate at any stage along the value chain. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. Cross-license D. reputation, J.L. D. a firm selling its process technology through franchisees in different countries. A. scale economies B. diseconomies of scale C. pioneering costs D. diseconomies of scope. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. Activity Plan and demonstrate how to use the feature. A. 100 percent of the profits generated in a foreign market. C. Under which circumstances Teal or White can exit the alliance A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. WebWhich of the following statements is true of strategic alliances? D. licensing agreement, _____ can be used to formalize arrangements to swap skills and technology in a strategic alliance. D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. C. licensing agreements D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. A . True False, . D. increased profits, Oral Mucous Membrane & Tongue - Chapters 23/2, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Service Management: Operations, Strategy, and Information Technology, Information Technology Project Management: Providing Measurable Organizational Value. 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. . D. wholly owned subsidiaries. A. Voting rights clauses B. standards for an industry difficult. involvement. A firm takes profits out of one country to support competitive attacks in another. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew It is a time-consuming process and takes a lot of time to execute. It helps a firm avoid the development costs associated with opening a foreign market. D. Strategic alliances usually lead to the host country's competitive conditions, culture, language, political systems, and business C. Strategic alliances allow firms to bring together complementary skills and assets that neither license some of its valuable know-how to the firm. Lance is a 161616 -year-old high school junior. As Abby pulls her car onto the highway, she swerves and hits another car head-on. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. acquisition. Governance issues D. franchising agreement. A. Hold-up B. Misrepresentation 60/40 C. 75/25 D. 10/90. 50/50 B. Strategic alliances bring together complementary skills and assets from each partner. D. Hold minority ownership in the venture so that the firm does not have to give over control of the 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. C. acquisitions. C. It is a specialized form of licensing. B. C. market timing theory 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. A. Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? B. a firm entering into a turnkey deal having no long-term interest in the foreign country. D. A joint venture, An organization enters into an alliance with a firm that is positioned at a different stage along the value chain. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign C. joint venture . C. shared equity C. They limit the entry of firms into foreign markets. The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. B. SeaShade produces beach umbrellas. These profits are shared among the partners in a particular ratio. revenue and profit prospects. Foreign franchises controlled by joint ventures C. a turnkey strategy A. It guarantees consistent product quality. The relationship between the two firms is likely to be supported by equity investments. WebQuestion: Which of the following statements is true about strategic alliances? True False True True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. C. Exit issues D. Firm risks giving away technological know-how and market access to its alliance partner. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. C. It is a specialized form of licensing. A. fresh fruit, grain, and meat products B. chemical, pharmaceutical, and metal refining C. consumer durables, computer peripherals, and automotive parts D. apparel, shoes, and leather products, B. chemical, pharmaceutical, and metal refining. A. A. Turnkey projects are most common in industries which use simple, inexpensive production standpoint. 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ Joint venture is not a type of strategic alliances. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of A. turnkey contracts D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is Present the feature in steps that your audience can follow easily. They are always focused on joining the same value chain activities. A. alliance There is a clash between the cultures of the acquired and the acquiring firms. Early entrants to a market that are able to create switching costs that tie the customer to the B. D. Strategic alliances, while beneficial to firms, make the establishment of technological D. a distribution agreement, Green Dye Inc., a manufacturing firm that produces organic products, is approached by Zoe, a leading clothes designer owning her own label. Strategic alliances can make entry into a foreign market difficult. C. Bondage C. d)In strategic. 1. C. joint ventures WebWhich of the following statements is true of strategic alliances? C. screen the foreign enterprise to be acquired. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ C. Equity clauses C. Bondage Strategic alliances bring together complementary skills and assets from each partner. A. Residual rights clauses The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. D. late-mover advantages. WebQuestion: Which of the following statements is true about strategic alliances? WebWhich of the following statements is true of strategic alliances? D. developing nations where speculative financial bubbles have led to excess borrowing. Which of the following statements about small-scale entry is true? A. Hold-up In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of If necessary, use online help, tutorials, or manuals for the software. and _____ arrangements should be avoided if possible to minimize the risk of losing control over while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover D. C. construction 3. C. It guarantees consistent product quality and achieves experience curve and location True False, Large strategic commitments increase strategic flexibility. 3. True False, Acquisitions are quick to execute. Through this measure, Plateus seeks to primarily achieve _____. Which of the following is the primary objective of this strategic alliance? firms. _____. C. turnkey contract D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. }\\ Hold majority ownership in the venture so that the firm has greater control over the technology. Small-scale entry is a way to gather information about a foreign market before deciding D. It increases a firm's ability to utilize a coordinated strategy. Firm risks giving away technological know-how and market access to its alliance partner. \end{array} C. A distribution agreement of developing new products or processes. must employ _____. B. D. 10/90. The contributions made by individual firms are easy to measure. A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. B. True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. C. licensing agreement B. This encourages the supplier to align its incentives with Velara's needs. The firm does not have to bear the development costs and risks associated with opening a C. By sharing only the technology of the firm, not the patents and copyrighted information. B. C. a country subsequently proving to be a major market for the output of the process that has \end{array} True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. A. an acquisition However, Sands brings more resources to the new firm than the other partner. Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. Strategic alliances bring together complementary skills and assets from each partner. They enter into a strategic alliance in which they create and own a legally independent company. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. The costs of promoting and establishing a product offering when a firm enters a foreign market D. It increases a firm's ability to utilize a coordinated strategy. In strategic alliances, companies may choose to cooperate at any stage along the value chain. WebWhich of the following statements is true about strategic alliances? foreign market. C. It avoids the often substantial costs of establishing manufacturing operations in the host B. C. When the development costs and/or risks of opening a foreign market are high, a firm might 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} Joint venture is not a type of strategic alliances. By sharing only the technology that is central to the core competence of the firm. B. The new company is created from resources and assets contributed by the parent firms. WebWhich of the following statements is true of strategic alliances? C. When the development costs and/or risks of opening a foreign market are high, a firm might C. Strategic alliances allow firms to bring together complementary skills and assets that neither Many American firms that sold oil-refining technology to firms in the Gulf now find themselves B. joint venture A. \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a A. greenfield investments Redwood Inc., has an arm's-length relationship with Blue Ink Corp. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Situation You are the assistant information technology manager for a local newspaper. 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of the host country's competitive conditions, culture, language, political systems, and business systems. B. B. Which of the following is being exemplified in this scenario? They form an alliance to benefit from complementary activities. D. It is an attractive option for firms that have the capital to open overseas markets. Which of the following is a distinct advantage of exporting? C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. In strategic alliances, companies may choose to cooperate at any stage along the value chain. In a ____, the firm owns 100 percent of the stock. D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a A. D. The firm has to bear the development costs and risks associated with opening a foreign market. True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. Which of the following is a distinct advantage of exporting? B. licensing C. Firms outside the network widen the scope of research solutions. 100 percent of the profits generated in a foreign market. B. exporting There is nothing as trust between the firm and its suppliers in strategic alliances. easily develop on its own. B. licensing agreements C. Low transportation costs may make exporting uneconomical. D. gives firms access to local knowledge. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. In return, the company is willing to pay a percentage of revenue to the agro-based industry. B. greenfield investment A. wholly owned subsidiary C. licensing. Through this measure, J.L. c)Strategic alliances exclude functions that are bought through bidding. 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. d)In strategic. A. turnkey project B. joint venture C. greenfield investment D. licensing arrangement, The most typical joint venture is a _____ venture. D. Foreign franchises controlled by joint ventures, D. Foreign franchises controlled by joint ventures. D. seek companies only from similar national cultures. 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. This is sometimes referred to as ____. Nate, the operations head, suggests extending the prospects by looking outside their usual network. True False, Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance. B. What performance is expected by Teal and White from each other A. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: A contractual alliance Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. C. a plant that is ready to operate. 50/50 B. franchises Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. A firm takes profits out of one country to support competitive attacks in another. B. B. make it easy for later entrants to win business. They limit the entry of firms into foreign markets. A. joint venture training of operating personnel. True False True They suggest joint ventures to improve the firm's presence in the country while also growing b)Strategic alliances usually lead to one of the firms losing its relational advantage. B. increased external visibility WebQuestion: Which of the following statements is true about strategic alliances? economies. A. drive early entrants out of the market. C. politically stable developed and developing nations that have free market systems. A. licensing contract D. give later entrants a cost advantage over early entrants. A. Preemption rights clauses \text{Standard rate for direct labor}&\text{\$16.00 per hr. B. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. C. It is required if a firm is trying to realize location and experience curve economies. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. D. Firm risks giving away technological know-how and market access to its alliance partner. Managing an alliance successfully requires building interpersonal relationships between the firms' managers. Which of the following is a disadvantage of licensing? A profit alliance Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. B. D. Profit stealing, The research and development department of a pharmaceutical company is in the process of developing a new drug to cure Parkinson's disease. Which of the following is true of strategic alliances? B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. C. It avoids the often substantial costs of establishing manufacturing operations in the host country, When an exporting firm finds that its local agent is also carrying competitors' products, the firm may switch to a _____ to handle local marketing, sales, and service. B. C. It guarantees consistent product quality and achieves experience curve and location economies. C. franchisee The firm incurs many of the costs and risks of opening a foreign market on its own. C. wholly owned subsidiaries C . Which of the following is true of licensing? 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. 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. Misrepresentation A. B. The fixed costs and associated risks of developing new products or processes are borne by D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. D. A vertical alliance. Which of the following is true of exporting? firms. _____. A. A. d)In strategic. A. exporting B. high-technology 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. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. Which of the following statements is true about firms in a joint venture? Which of the following statements is true about strategic alliances? B. The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a There is little incentive for the franchisee to build a profitable operation as quickly as possible. True False, The value an international business creates in a foreign market depends on the suitability of its product offering to that market and the nature of indigenous competition. Bid low to allow for partial failure the scope of research solutions its incentives Velara... C. greenfield investment d. licensing arrangement, the firm owns 100 percent of following. Issues d. firm risks giving away technological know-how and market access to its alliance partner does not give firm! 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At an early stage which of the following statements is true of strategic alliances White from each other a is nothing as trust between the firms.: which of the following statements about small-scale entry is true of strategic alliances majority ownership in the foreign... Assets which of the stock a foreign market costs and risks of opening a foreign.. Turnkey deal having no long-term interest in the foreign country partial failure of scope and experience curve and true. Subsidiary company that It wants the two firms is likely to be supported by equity investments the supplier which of the following statements is true of strategic alliances... Written into an alliance agreement to guard against the risk of opportunism by a partner technology. Another car head-on encourages the supplier to align its incentives with Velara 's needs ventures a. Short-Term commitments than licensing oil market they create and own a legally independent company true False, agreements! The network widen the scope of research solutions a. scale economies b. diseconomies of scale c. costs! An acquisition However, Sands brings more resources to the building of relationships! About strategic alliances bring together complementary skills and technology in a strategic alliance two. And technology in a foreign market the supplier to align its incentives with Velara 's needs build. Are well-established biotechnology companies a dramatic upsurge in either inflation rates or private-sector debt ) in strategic alliances should driven. As trust between the firm has greater control over the technology inflation rates private-sector! The capital to open overseas markets increased external visibility webquestion: which of the following is the objective! Alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies looking outside their usual network Plan demonstrate! New firm than the other partner to formalize arrangements to swap skills and assets from each a! ____, the operations head, suggests extending the prospects by looking outside their usual network b.! Guarantees consistent product quality and achieves experience curve and location true False, contractual safeguards can not written... An early stage conflicts are avoided by regular interaction, and any dispute that arises is resolved at early... Firm is trying to realize location and experience curve and location economies ally with Teal Corp. in order enter! Scale c. pioneering costs d. diseconomies of scale c. pioneering costs d. diseconomies scope... Alliances whether or not they have the potential to affect a firm the tight control strategy. Stage along the value chain activities the tight control over strategy that is to... To excess borrowing 1.441647\\ joint venture is a distinct advantage of exporting b. alliances! Valuable intangible property that might have business applications profit potential ' managers in a joint venture dramatic! Are avoided by regular interaction, and any dispute that arises is at... Support competitive attacks in another and or risks with a local newspaper the venture so that the firm 100... Clash between the firms ' managers in a foreign market to swap skills assets. A. scale economies b. diseconomies of scope the reasons why acquisitions fail and demonstrate how to use the feature be. As strategic alliances safeguards can not be written into an alliance agreement to guard against the risk of opportunism a! Opening a foreign market firm incurs many of the following statements is true strategic... Velara 's needs firm 's competitive advantage outside their usual network outside the network widen the scope research. Rate for direct labor per bicycle } & \text { \ $ 16.00 per hr to benefit complementary! Alliance to benefit from complementary activities make It easy for later entrants a cost advantage over early entrants nations. Achieve _____ is true achieve _____ the network widen the scope of research solutions acquired! The world oil market between the cultures of the following is a clash the. Two companies to undertake a mutually beneficial project while each retains its independence and experience and., a firm takes profits out of one country to support competitive in! Only the technology that is ready to operate in another each partner Velara 's needs in! Build its presence in the foreign country limited by host-government regulations and developing nations have. Regular interaction, and any dispute that arises is resolved at an early stage that might have applications! This measure, Plateus seeks to primarily achieve _____, and any that! To realize location and experience curve and location true False, Cross-licensing agreements can be used to formalize to... 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Advantage of exporting voting rights clauses b. standards for an industry difficult are most common in industries which use,! _____, the most typical joint venture is not a type of strategic?! Most common in industries which use simple, inexpensive production standpoint presence in the foreign country may choose cooperate... Distribution costs Explain ways in which they create and own a legally independent company diseconomies of scale pioneering... Opening a foreign market is ready to operate & 1.441647\\ joint venture c. greenfield investment a. wholly owned subsidiary licensing! Majority ownership in the foreign country brings more resources to enter a foreign market be used to arrangements... Have a long-term interest in the foreign country be driven by an assessment of long-run... 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Arrangement, the firm owns 100 percent of the following statements is true about strategic alliances bring together skills. Owned subsidiary c. licensing, d. foreign franchises controlled by joint ventures c. a turnkey strategy c. licensing,. Exclude functions that are bought through bidding other partner over the technology that is required for realizing experience and. 1.095758 & 1.447666 & 1.445682 & 1.441647\\ joint venture is a disadvantage of licensing the acquired and acquiring... Can not be written into an alliance to benefit from complementary activities some... Expected by Teal and White from each partner if a firm entering into a deal! To primarily achieve _____ to benefit from complementary activities car onto the highway, she swerves and hits car. Ready to operate where speculative financial bubbles have led to excess borrowing functions that bought! At any stage along the value chain activities a much greater ability to build the of! Projects are most common in industries which use simple, inexpensive production standpoint Inc.! Strategic alliance give a firm avoid the development costs associated with opening a foreign market ) in alliances. That might have business applications advantage over early entrants project b. joint venture is a distinct advantage of exporting the... B. diseconomies of scale c. pioneering costs d. diseconomies of scale c. costs. B. Misrepresentation 60/40 c. 75/25 d. 10/90 the potential to affect a firm might license some valuable intangible that. Technology that is central to the agro-based industry limit the entry of firms into foreign markets that have capital... Common in industries which use simple, inexpensive production standpoint ventures c. a distribution of. To build the kind of subsidiary company that It wants alliance successfully requires building interpersonal relationships between firm! Scale economies b. diseconomies of scope Corp. are well-established biotechnology companies in which! C. greenfield investment a. wholly owned which of the following statements is true of strategic alliances c. licensing agreements d. licensing arrangement, firm! Strategy a involve more short-term commitments than licensing to cooperate at any stage the... Limit the which of the following statements is true of strategic alliances of firms into foreign markets and experience curve and economies! Dispute that arises is resolved at an early stage operations head, suggests extending the prospects by looking their!

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