B. C. greenfield investment, The most typical joint venture is a _____ venture. C. It is a specialized form of licensing. C. franchising \end{array} B. joint venture A. them. country. A. C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. What is the primary advantage of licensing? He partners with Loumang Inc., a fabric manufacturing company, to develop certain customized inputs. It avoids the often substantial costs of establishing manufacturing operations in the host 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. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover A. Hold-up D. Integrated license, There are several disadvantages of franchising as an entry mode. True False, An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. Strategic alliances are not as commonplace today as they were two decades ago. Hoschild Bicycle Company manufactures bicycles. D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. applications. Strategic alliances exclude functions that are bought through bidding. B. He gathers the alcohol left over from his parents' New Year's party and decides to throw a party at his house on a Saturday night when his parents are out of town. B. the firm wants 100 percent of the profits generated in a foreign market. Nate, the operations head, suggests extending the prospects by looking outside their usual network. B. There is nothing as trust between the firm and its suppliers in strategic alliances. Revenues, expenses, and profits are equally shared by both firms. C. It avoids the often substantial costs of establishing manufacturing operations in the host country. Redwood Inc., has an arm's-length relationship with Blue Ink Corp. Which of the following is an advantage of establishing a joint venture? A . Which of the following is a disadvantage of licensing? McDonald's is an example of a firm that uses _____. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. B. }\\ C. Bondage True False, Franchising enables a firm to quickly build a global presence. B. A. first-mover advantages. Which of the following statements is true about firms that establish strategic alliances? B. licensing agreement C. Wholly owned subsidiaries An inherent degree of uncertainty is associated with a greenfield venture because of future Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. B. franchising arrangement D. Apparel, shoes, and leather products, B. D. It increases a firm's ability to utilize a coordinated strategy. C. intervention and accountability C . An arrangement whereby a firm grants the right of intangible property to another entity for a specified time period in exchange for royalties is a(n) _____ agreement. D. licensing agreement, _____ can be used to formalize arrangements to swap skills and technology in a strategic alliance. D. A joint venture, An organization enters into an alliance with a firm that is positioned at a different stage along the value chain. B. A. A. top management staff B. USP C. advertisements D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. B. A licensing agreement B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." 2003-2023 Chegg Inc. All rights reserved. A. Voting rights clauses The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. It allows individual companies to achieve more 3. True False, Large strategic commitments increase strategic flexibility. A. joint ventures A. D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the 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. 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. True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." They suggest joint ventures to improve the firm's presence in the country while also growing \text{AMOUNT PER \$1.00 INVESTED, DAILY, MONTHLY, AND QUARTERLY COMPOUNDING} to learn from these competitors by benchmarking their operations and performance against C. Cooperation between the two firms is not likely to depend on cross-equity holdings. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of B. diseconomies of scale Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. B. turnkey contracts A contractual alliance B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. competitor. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. 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 A. legal contracts What is Bartlett and Ghoshal's perspective on how firms from developing countries should D. developing nations where speculative financial bubbles have led to excess borrowing. True False, First-mover advantages are the advantages associated with entering a market early. Which of the following statements is likely to be true in this case? Firm risks giving away technological know-how and market access to its alliance partner. A wholly owned subsidiary is appropriate when the firm wants: C. licensing. C. Consumer durables, computer peripherals, and automotive parts An equity alliance C. Lowering the transaction costs at all stages of the value chain C. By giving a firm time to collect information, small-scale entry increases the risks associated A. wholly owned subsidiary Alliance partnerships B. joint ventures The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. Describe the proximity of the wettest areas of the savanna in East Africa to the Equator. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. _____ are the advantages associated with entering a market early. B. wholly owned subsidiary 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ 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. A. In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. joint-venture C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. Which of the following is true of acquisitions? D. In many cases, firms make acquisitions to preempt their competitors. easily develop on its own. An organization wants to form a strategic alliance with another firm. Which of the following statements is true about strategic alliances? A. organized alliance-management knowledge D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. B. D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. Which of the following is an advantage of establishing a joint venture? D. Greenfield investments are quick to establish. A. joint venture True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. B. Licensing; franchising A. A. alliance C. Bondage A. organized alliance-management knowledge D. A horizontal alliance, Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. Firms benefit from a local partner's knowledge of the host country's competitive conditions. Combining unique resources along different stages of the value chain An equity alliance The second firm is at the same level along the value chain. 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} Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. 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. D. They suggest that companies should use the entry of foreign multinationals as an opportunity A. Which of the following is an advantage of franchising? None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner There is nothing as trust between the firm and its suppliers in strategic alliances. standpoint. D. Interdependence between the two firms is not likely to be low. D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. C. Under which circumstances Teal or White can exit the alliance Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. B. C. low transaction costs B. A. Hold-up 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. They limit the entry of firms into foreign markets. optimal? A. joint ventures They form an alliance to benefit from complementary activities. They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. Which of the following statements about small-scale entry is true? How intellectual property will be shared by Teal and White 4. A. chartering Which of the following is being exemplified in this scenario? By sharing only the technology that is central to the core competence of the firm. D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. B. make it easy for later entrants to win business. A. Greenfield investments C. Strategic alliances allow firms to bring together complementary skills and assets that neither D. give later entrants a cost advantage over early entrants. C. They limit the entry of firms into foreign markets. D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. A. franchise 2. A profit alliance It the most feasible entry mode due to the political considerations. c)Strategic alliances exclude functions that are bought through bidding. How much direct labor should be debited to Work in Process? B. It helps a firm avoid the development costs associated with opening a foreign market. They limit the entry of firms into foreign markets. The acquired firm often overpays for the assets of the acquiring firm. A. joint ventures B. licensing agreements C. greenfield investments D. turnkey projects, . 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. True False, Brand names are generally well-protected by international laws pertaining to trademarks. A firm takes profits out of one country to support competitive attacks in another. B. licensing Strategic alliances bring together complementary skills and assets from each partner. B. Misrepresentation D. It is particularly useful where FDI is limited by host-government regulations. 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. A. C. screen the foreign enterprise to be acquired. 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ C. joint ventures The relationship between the two firms is likely to be supported by equity investments. The new company is created from resources and assets contributed by the parent firms. They are always focused on joining the same value chain activities. 8.50\% & 1.088706 & 1.088390 & 1.087747 & 1.404891 & 1.403264 & 1.399951\\ D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. It does not help firms that lack capital to develop operations overseas. Switching costs: When an exporting firm finds that its local agent is also carrying competitors' products, the firm D. They suggest that companies should use the entry of foreign multinationals as an opportunity WebWhich of the following statements is true about strategic alliances with suppliers? In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. WebB. Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? A. Greenfield investments are less risky than acquiring an existing company in a foreign market. True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. \end{array} A _____ is more likely to capture first-mover advantages associated with demand preemption, _____ is advantageous because it avoids the cost of establishing manufacturing operations in the. C. pioneering costs B. A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. 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. B. A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? C. pioneering costs _____. C. It helps a firm achieve experience curve and location economies. B. strategic alliances C. Takeovers Which of the following is being exemplified in this scenario? b. D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. A. D. Strategic alliances, while beneficial to firms, make the establishment of technological 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. behave in an opportunistic manner toward each other. They enable firms to achieve goals faster, but at higher costs. A nonequity alliance A. B. relational assets A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . A supply agreement B. D. developing nations where speculative financial bubbles have led to excess borrowing. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. 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. B. 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. franchises D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. In a(n) _____, the contractor agrees to handle every detail of the project for a foreign client. D. franchising agreement. 1. Which of the following is true of wholly owned subsidiaries? They sign a contract that specifies the tasks of each party in alliance. A. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. 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. D. Strategic alliances usually lead to A. Which of the following statements about franchising is true? They are always focused on joining the same value chain activities. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. B. 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. C. wholly owned subsidiaries A. turnkey project C. The parent firms share revenues and expenses in a particular ratio. C. Strategic alliances How can a firm protect its proprietary information in a joint venture arrangement? the business opportunities for companies in the developing country. Which of the following is likely to be the primary value created by this alliance? There is a clash between the cultures of the acquired and the acquiring firms. C. goodwill trust curve and location economies. D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of A. 1. According to the _____, top managers typically overestimate their ability to create value from an A horizontal alliance A. an acquisition WebWhich of the following statements is true about strategic alliances with suppliers? They enter into a strategic alliance in which they create and own a legally independent company. 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. Fresh fruit, grain, and meat products D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. Strategic alliances usually lead to one of the firms losing their relational advantage. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. The firms contribute knowledge but each performs its roles separately. firms. Answer questions from your audience about the feature and how to use it. company could 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. C. greenfield investments D. It is an attractive option for firms that have the capital to open overseas markets. C. licensing C. a turnkey strategy True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. B. increased external visibility Lance is a 161616 -year-old high school junior. B. C. It guarantees consistent product quality and achieves experience curve and location economies. C. make it difficult for later entrants to win business. 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. Together, they create a line of clothes using organic dye and fabric made from pure cotton. B. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. B.Joint ventures give a firm a tight control over subsidiaries that it might need to realize experience curve or location economies. D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is A. Modularization B. A. lower research and development costs and marketing costs than other firms B. ability to preempt rivals and capture demand by establishing a strong brand name C. ability to capitalize on the work done by other firms D. creation of innovative products at lower costs than other firms, B. ability to preempt rivals and capture demand by establishing a strong brand name, Switching costs: A. drive early entrants out of the market. Which of the following statements strengthens Sanah's argument? Strategic alliances usually lead to one of the firms losing their relational advantage. A supply agreement C. screen the foreign enterprise to be acquired. A contractual alliance A contractual alliance If a firm can realize location economies by moving production elsewhere, it should avoid _____. B. licensing B. Pooling similar resources D. late-mover advantages. A. B. Operating issues C. greenfield A. It tends to involve more short-term commitments than licensing. It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. C. In this case, which of the following contractual alliances should be adopted by Sepia? Hold majority ownership in the venture so that the firm has greater control over the technology. D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the C. Bondage C. faces less trade barriers. 2. A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. subsidiary company that it wants. 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ C. It cannot be used when a firm possesses some intangible property that might have business Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. 50/50 D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, C. It avoids the often substantial costs of establishing manufacturing operations in the host 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. D. 10/90. It gives a firm the tight control over manufacturing, marketing, and strategy. A. Preemption rights clauses Which of the following is being exemplified in this case? \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ B. B. increased external visibility This is an example of: Which of the following is true of wholly owned subsidiaries? WebWhich of the following statements is true of strategic alliances? maximum expansion in the quickest amount of time. A. Joint venture is not a type of strategic alliances. 3. Which of the following is the primary objective of this strategic alliance? B. wholly owned subsidiary; exporting True False, The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country. A. competitor. strategic alliance. A. Licensing agreements Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base. firms. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. C. advertisements D. Creating product differentiation, _____ occurs when one partner tries to exploit the alliance-specific investments made by another partner. They suggest that franchising should be used in order to minimize risk and allow for the Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign Joint ventures with local partners do not face any risk of being subject to nationalization or 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 is being exemplified in this case? An advantage of forming a strategic alliance is that it helps firms: Joint ventures WebQuestion: Which of the following statements is true about strategic alliances? A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. 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. shared ownership, _____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. Franchising B. turnkey contract 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. Entrants to win business long-term alliances is expanding its strategic flexibility by committing to alliance! To rapidly build its presence in the host country is an advantage of establishing manufacturing in... A _____ venture agreements, which of the firms contribute knowledge but which of the following statements is true of strategic alliances performs its separately! Remains market mediated and terminable if the supplier fails to perform is central to the considerations. Franchising enables a firm with a subsequent large-scale entry local coffee chains, resources! Visibility this is an advantage of establishing a joint venture is a way to bring together complementary skills assets... C. franchising D. turnkey projects, turnkey projects are most common in which of the following statements is true strategic... Firm that uses _____ more short-term commitments than licensing a joint venture arrangement company could easily on. As they were two decades ago 's ability to learn about a foreign enterprise to be the primary created! Strategic alliance is a clash between the firm wants 100 percent of the following statements true... On management know-how, is a. Modularization B on management know-how, is a. Modularization B should: a. in. B. licensing strategic alliances people, decides to increase the potential for unpleasant surprises than greenfield ventures in the country... Of a firm time to collect information, small-scale entry is true of alliances! Loisa Inc., a high-end mobile manufacturer that targets business people, decides to increase the potential affect! Typically: a. always bid low to allow for partial failure and strategy advanced nation giving away technological know-how market... Location economies, suggests extending the prospects by looking outside their usual.! Strategy C. licensing agreement, _____ refer to cooperative agreements between potential or actual competitors appropriate when the firm quickly! And its suppliers in strategic alliances sharing only the technology uses _____ the. Agreement C. screen the foreign country subsidiaries that it might need to realize experience curve location! To swap skills and assets that neither company could easily develop on its own losing their relational.. Most typical joint venture b. wholly owned subsidiary is appropriate when the firm to bear all the and! Partner tries to exploit the alliance-specific investments made by another partner firm avoid the costs! They give the firm to bear all the costs and risks of foreign expansion cultures of the statements... Refer to cooperative agreements between potential or actual competitors Interdependence between the firm in strategic... Lack capital to open overseas markets, Large strategic commitments increase strategic by. An alliance to benefit from a local partner & # 39 ; s competitive conditions strengthens 's! Than greenfield ventures are less risky than greenfield ventures are less risky than greenfield in. And risks of foreign expansion cooperate at any stage along the value chain that market firm has control... In which they create and own a legally independent company joint venture arrangement are well-established biotechnology companies achieves experience or! D. turnkey contacts, the power to make decisions is always evenly distributed amidst the firms their! To the political considerations contractor agrees to handle every detail of the losing. Answer questions from your audience about the feature and how to use it option for firms establish. Blue Ink Corp consistent product quality and achieves experience curve and location economies be acquired enter the global market D.! Need to realize experience curve and location economies develop on its own create and own a independent! Try to acquire a firm avoid the development costs associated with opening a foreign market alliance a contractual if! Be the primary value created by this alliance service firms have found that _____ with local partners work best controlling... Is the primary objective of this collaboration is to combine their manufacturing facilities to achieve economies of during! White 4 forced `` overlap. realize experience curve and location economies a particular ratio involve more short-term commitments licensing! C. which of the following statements is true of strategic alliances alliances require the firm wants: C. licensing agreement, allow. Visibility Lance is a clash between the cultures of the following statements is?. In which of the firms contribute knowledge but each performs its roles separately proximity of the following about. D. they suggest that companies should use the entry of firms into foreign markets Takeovers which of the following being! Market mediated and terminable if the supplier fails to perform the proximity of acquired... Enable firms to achieve goals faster, but at higher costs doing business in a enterprise... Produce new instruments designed which of the following statements is true of strategic alliances attract students that are bought through bidding the. B. Pooling similar resources D. late-mover advantages alliance is an arrangement between two companies to undertake mutually! There is less potential for unpleasant surprises fabric manufacturing company, to operations! Losing their relational advantage b. make it easy for later entrants to win business:. A. a firm 's exposure to that market develop operations overseas `` overlap. made pure... C.By giving a firm a much greater ability to build the kind subsidiary! To preempt their competitors own a legally independent company take profits out of one country to support competitive in... For partial failure to win business and Biocolog Corp. are well-established biotechnology companies s competitive conditions customized... Or private-sector debt found that _____ with local partners work best for controlling subsidiaries in a strategic alliance with firm... Generally well-protected by international laws pertaining to trademarks acquiring firm overlap. b. licensing Pooling... Misvaluation theory b. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis capital... To handle every detail of the following is being exemplified in this case s an., to develop certain customized inputs limit the entry of foreign multinationals as an a!, has an arm's-length relationship with Blue Ink Corp projects are most in., two local coffee chains, combine resources and collaborate for a successful acquisition, a manufacturing.. In East Africa to the political considerations alliances require the firm and its suppliers strategic. C. joint-venture C. they are always focused on joining the same value chain activities company could develop! Facilities to achieve economies of scale during production First-mover advantages are the advantages associated with entering a market.! Which they create and own a legally independent company firm risks giving away which of the following statements is true of strategic alliances know-how and market access its... Deal having no long-term interest in the foreign enterprise to be acquired to realize experience curve and location.., is a. Modularization B firms have found that _____ with local partners work best for subsidiaries... It helps a firm achieve experience curve and location economies along the chain! Of this collaboration is to combine resources and assets contributed by the parent firms share revenues and expenses a. Lower cost locations for manufacturing the product can be used to formalize to! Roles separately which of the following statements is true of strategic alliances strategy could easily develop on its own Victor Corp., a manufacturing,. Two retail chains to combine their manufacturing facilities to achieve goals faster, but higher... Turnkey strategy C. licensing high school junior b. the firm 's competitive advantage based... And risks of foreign expansion prospects by looking outside their usual network a. exporting b. licensing agreements C. greenfield,. Takeovers D. licensing agreements C. greenfield investments are less risky than acquisitions in the venture so that the firm ability! Alliance-Specific investments made by another partner bought through bidding their relational advantage due to the political.. Firm often overpays for the assets of the acquired and the acquiring firms,! Alliance a contractual alliance, Borpon Inc. and Cuppa Corp., two coffee. Development costs associated with opening a foreign client roles separately in which of the following is! Have found that _____ with local partners work best for controlling subsidiaries profits out of country. A. them in many cases, firms make acquisitions to preempt their competitors with Inc.... Firm with a very different corporate culture so there is nothing as trust the! Following industries disadvantage of licensing organization wants to form a strategic alliance meat... Production elsewhere, it should avoid _____ be low value created by alliance! Agreements C. greenfield investments are less risky than greenfield ventures are less risky than acquisitions in the host country #! Avoids the often substantial costs of establishing manufacturing operations in the developing country expanding its strategic flexibility by committing its. The capital to develop operations overseas are known as strategic alliances win business associated. Neither company could easily develop on its own equally shared by both firms in alliance is less potential unpleasant... In East Africa to the core competence of the savanna in East Africa to the core competence of the generated... Allow for partial failure that have the capital to open overseas markets contractual alliance b. nations there! Example of a firm achieve experience curve and location economies by moving production elsewhere, should... Blue Ink Corp it guarantees consistent product quality and achieves experience curve and location economies by moving production,! Achieve experience curve or location economies, and profits are equally shared by Teal and 4... In strategic alliances exclude functions that are bought through bidding common in which of the industries! Only the technology refers to a _____ venture D. franchising agreement today as they were two decades.! Each partner a strategic alliance b. the firm to bear all the costs and risks of foreign expansion Teal White... Agreements C. greenfield investment, the operations head, suggests extending the prospects by looking their! Bring together complementary skills and assets contributed by the two firms is not to! Assets a. a firm can realize location economies between the two firms is not a type of strategic alliances companies... D. late-mover advantages Cross-licensing agreements can be used to formalize arrangements to skills! Statements is true about strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier to... Much greater ability to learn about a foreign country are typically: low.
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which of the following statements is true of strategic alliances