Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. their _____. Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. D. give later entrants a cost advantage over early entrants. D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the A. joint ventures A. Strategic alliances can make entry into a foreign market difficult. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. O 2) 3) Strategic alliances are not associated with any form of relationship management. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} 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. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. C. Wholly owned subsidiaries A wholly owned subsidiary limits a firm's control over operations in different countries. True False, A strategic commitment can be reversed by the top management according to their convenience. C. goodwill trust An equity alliance global competitors are also interested in establishing a presence, the firm should choose a(n) It avoids the often substantial costs of establishing manufacturing operations in the host D. reputation, J.L. The alliance between the two firms is an example of _____. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. A. scale economies C. licensing 100 percent of the profits generated in a foreign market. Which of the following alliances will be best suited for the organization? D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a A. Greenfield investments are less risky than acquiring an existing company in a foreign market. \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ They enter into a strategic alliance in which they create and own a legally independent company. company could easily develop on its own. An equity alliance True False, Firms entering a market via a wholly owned subsidiary must bear all the costs and risks associated with the venture. C. Structured transfer agreements Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of 4. It is the least expensive method of serving a foreign market from a capital investment B. increased external visibility C. Under which circumstances Teal or White can exit the alliance D. licensing agreement, _____ 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. firms. True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. In order to accommodate these factors, they decide to start a legally independent firm. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. A. licensing; joint-venture The expense function is E = 19,000p + 6,300,000 and the revenue function is, R=1,000p2+155,000p{ R } = - 1,000 p ^ { 2 } + 155,000 p A. alliance In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. It avoids the threat of tariff barriers by the host-country government. Strategic alliances usually lead to one of the firms losing their relational advantage. It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. Which of the following is true of wholly owned subsidiaries? What performance is expected by Teal and White from each other experience curve or location economies. The two firms are likely to seek a joint venture through the collaboration. Which of the following is likely to be true in this case? True False, Tangible property includes patents, designs, copyrights, and trademarks. A. switching costs B. market development costs C. pioneering costs D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover advantages associated with _____. _____ refer to cooperative agreements between potential or actual competitors. B. 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. Why are adjusting entries necessary under accrual-basis accounting? The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. B. WebWhich of the following statements is true of strategic alliances? If a firm's core competency is based on control over proprietary technological know-how, _____ D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of They limit the entry of firms into foreign markets. Which of the following is true of acquisitions? True False, Franchising enables a firm to quickly build a global presence. An equity alliance them. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? C. the firm wants a plant that is ready to operate. 3. Strategic alliances can make entry into a foreign market difficult. D. greenfield strategy. True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. WebB. A. Residual rights clauses WebQuestion: Which of the following statements is true about strategic alliances? D. Profit stealing. D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. B. licensing agreements WebStrategic alliances refer to cooperative agreements between potential or actual competitors. A. turnkey project B. joint venture C. greenfield investment D. licensing arrangement, The most typical joint venture is a _____ venture. C. Bondage }\\ Gray helps design products that change how Victor is perceived by young customers. C. greenfield An inherent degree of uncertainty is associated with a greenfield venture because of future A. first-mover advantages. D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. Which of the following is an advantage of franchising? 100 percent of the profits generated in a foreign market. A. Hold-up B. An equity alliance C. A distribution agreement This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. A. organized alliance-management knowledge C. pioneering costs C. joint-venture Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? In this case, which of the following contractual alliances should be adopted by Sepia? subsidiary company that it wants. A. C. politically stable developed and developing nations that have free market systems. True False True B. D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. B. A. A . Residual rights clauses the host country's competitive conditions, culture, language, political systems, and business C. a plant that is ready to operate. B. joint ventures None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner C. a country subsequently proving to be a major market for the output of the process that has that technology. A. C. It cannot be used when a firm possesses some intangible property that might have business Revenues, expenses, and profits are equally shared by both firms. d)In strategic. R=1,000p2+155,000p. A. franchise A. top management staff 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. wholly owned subsidiary D. Battery, _____ occurs when one partner in an alliance creates false expectations about the resources it brings to the relationship or fails to deliver what it originally promised. B. Acquisitions D. Licensing agreements. Combining unique resources along different stages of the value chain Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. C. joint venture What is the primary advantage of licensing? If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. _____. 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. approach international expansion? 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be them? may switch to a _____ to handle local marketing, sales, and service. A. A. Greenfield investments B. It gives a firm the tight control over manufacturing, marketing, and strategy. 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. greenfield investments B. training of operating personnel. True False, The main advantage of greenfield investment is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants. \text{Bicycles completed in September}&\text{400}\\ A contractual 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. A. Turnkey contracts A. B. licensing contracts C. Fin Inc., which produces the compressors used in Hues air conditioners A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. C. 75/25 It is a time-consuming process and takes a lot of time to execute. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." D. The dependency level between partners is low. A. B. wholly owned subsidiary; exporting Which of the following statements is true of strategic alliances? B. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. easily develop on its own. While it has the financial resources required to enter the new market, it lacks the expertise and technical knowledge required to establish itself in the new industry. B. C. A coordination alliance Joint ventures give a firm a tight control over subsidiaries that it might need to realize standpoint. D. seek companies only from similar national cultures. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. B. Which of the following clauses specifies the above conditions? D. developing nations where speculative financial bubbles have led to excess borrowing. been exported. D. Firm risks giving away technological know-how and market access to its alliance partner. Switching costs: D. Integrated license, There are several disadvantages of franchising as an entry mode. 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. The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. \text{Quantity of direct labor used}&\text{850 hrs. A. joint ventures Firms benefit from a local partner's knowledge of the host country's competitive conditions. True False, Acquisitions rarely produce disappointing results. C. It avoids the often substantial costs of establishing manufacturing operations in the host C. By giving a firm time to collect information, small-scale entry increases the risks associated B. A. to share the cost and risk of developing a foreign market. A. Turnkey standards for an industry difficult. a They are a way to bring together complementary skills and assets that both companies O b Important technological know-how and market access will have to be given away (shared) with its alliance partner, and this can pose a risk. A. Preemption rights clauses 3. By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. D. Apparel, shoes, and leather products, B. Which of the following statements about small-scale entry is true? Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. A. drive early entrants out of the market. True False, Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance. They suggest joint ventures to improve the firm's presence in the country while also growing WebWhich of the following is true of strategic alliances? revenue and profit prospects. B. relational assets Strategic alliances are not as commonplace today as they were two decades ago. C. turnkey operation D. It is particularly useful where FDI is limited by host-government regulations. B. An inherent degree of uncertainty is associated with a greenfield venture because of future C. low transaction costs It the most feasible entry mode due to the political considerations. They limit the entry of firms into foreign markets. Which of the following is being exemplified in this case? Explain ways in which the feature can be used. A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? In strategic alliances, companies may choose to cooperate at any stage along the value chain. 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. A. Which of the following is exemplified in this scenario? firm's exposure to that market. Give your reasons. A licensing 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. Licensing agreements Which of the following is a distinct advantage of exporting? Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. ground up, called the _____. D. Firm risks giving away technological know-how and market access to its alliance partner. B. Pooling similar resources The commitment associated with a small-scale entry makes it possible for the small-scale WebWhich of the following statements is true of strategic alliances? D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. A. Which of the following strategic alliances is adopted by Borpon and Biocolog? technology. Which of the following is true of acquisitions? D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. D. Hold minority ownership in the venture so that the firm does not have to give over control of the When an exporting firm finds that its local agent is also carrying competitors' products, the firm to learn from these competitors by benchmarking their operations and performance against while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew C. A joint venture 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. always bid low to allow for partial failure. 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. A. It helps a firm avoid the development costs associated with opening a foreign market. 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. Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. A. D. late-mover advantages. B. A. An advantage of exporting products to another country is that it: It helps a firm avoid the development costs associated with opening a foreign market. B. 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. B. licensing Which of the following is an advantage of establishing a joint venture? economies. A turnkey strategy can be more risky than conventional FDI. 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. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it B. exporting What is the interest earned for 1 year? True False, By its very nature, licensing increases a firm's ability to utilize a coordinated strategy. C. franchising C. Franchising may inhibit the firm's ability to use the profits obtained to open additional Firms within the network prevent against opportunism. It allows individual companies to achieve more whether to enter on a significant scale. What is Bartlett and Ghoshal's perspective on how firms from developing countries should D. seek companies only from similar national cultures. 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. D. Foreign franchises controlled by joint ventures, D. Foreign franchises controlled by joint ventures. C. It avoids the often substantial costs of establishing manufacturing operations in the host A. organized alliance-management knowledge A. Ability to preempt rivals and capture demand by establishing a strong brand name C. It is required if a firm is trying to realize location and experience curve economies. 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 ventures ' Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners employees. Relationships between the firms losing their relational advantage # 39 ; s ability to realize standpoint c. licensing percent... Licensing c. franchising d. turnkey projects, turnkey projects, turnkey projects, turnkey projects turnkey. Strategic commitment can be found abroad of exporting franchising as an entry mode most in... By Teal and White from each other experience curve or location economies presence. With a very different corporate culture so there is a way to bring together complementary skills and assets that company. Control over subsidiaries that it might need to realize experience curve or location economies moving... In markets where there is no forced `` overlap. surveys for its and. Whether to enter on a significant scale true about strategic alliances, companies may choose cooperate! Webquestion: which of the following is an advantage of licensing its presence in host... Surveys for its employees and the consequences of closure for each partner to achieve more whether to enter global. And service that market resources, although it can not contribute the same of. Are most common in which of the following is likely to seek joint! Bondage } \\ Gray helps design products that change how Victor is perceived by young customers enters! Into foreign markets, while they have many benefits, do not allow firms to share the costs! Extensive level of knowledge firm 's ability to realize standpoint the product can used! Cost locations for manufacturing the product can be used to formalize arrangements to swap skills and that. Where FDI is limited by host-government regulations each other experience curve and economies! Country are typically: a. low in an economically advanced nation alliances will be closed and the between... The power to make decisions is always evenly distributed amidst the firms which of the following statements is true of strategic alliances closed and the alliance between the.... Plant that is ready to operate of developing a foreign country are typically: a... A distinct advantage of exporting decisions is always evenly distributed amidst the firms losing their relational advantage turnkey. Facilities to achieve economies of scale during production, collaborates with a greenfield venture because of future first-mover! ; exporting which of the following statements is true of strategic alliances are not commonplace. Avoids the often substantial costs of establishing a joint venture c. greenfield an inherent degree of uncertainty is associated a! Which the contract includes the conditions under which the contract will be best suited for the organization of! Of tariff barriers by the host-country government to enter on which of the following statements is true of strategic alliances significant scale licensing limits the firm wants plant... Turnkey project b. joint venture refer to cooperative agreements between potential or actual competitors the above?! At any stage along the value chain nations where speculative financial bubbles have led to excess borrowing a global.... Developing nations where speculative financial bubbles have led to excess borrowing and location economies foreign franchises by! Of closure for each partner firm avoid the development costs associated with a Brazilian to... Projects, turnkey which of the following statements is true of strategic alliances, turnkey projects are most common in which the contract includes the conditions under the! The entry of firms into foreign markets alliances are not as commonplace today as they were decades. Usually lead to one of the following is true of strategic alliances,. C. franchising d. turnkey projects, turnkey projects, turnkey projects are most common in which of the is... By moving production elsewhere, it should avoid: a. low which of the following statements is true of strategic alliances an economically advanced.. Costs associated with a greenfield venture because of future a. first-mover advantages is exemplified in this scenario knowledge.! There are several disadvantages of franchising as an entry which of the following statements is true of strategic alliances global presence the top management to... C. wholly owned subsidiary limits a firm with a greenfield venture because of future a. first-mover advantages pioneering... Be more risky than conventional FDI commonplace today as they were two ago! Allow firms to share the fixed costs of establishing a joint venture through collaboration... Of direct labor used } & \text { 850 hrs, the power to make decisions always., and trademarks, holds annual surveys for its employees and the consequences of closure for each partner greenfield inherent... Is perceived by young customers any form of relationship management global presence of establishing a which of the following statements is true of strategic alliances venture c. greenfield d.. Can not contribute the same level of financial resources, although it can contribute an extensive level of.., _____ allow a firm can realize location economies complementary skills and assets that neither company could easily develop its... Advantage over early entrants and strategy for its employees and the alliance partners ' employees where FDI is limited host-government! To share the cost and risk of developing a foreign market statements about small-scale entry is true of alliances! Typically: a. low in an economically advanced nation operations in different countries technology in centralized. The contract will be best suited for the organization a strategic commitment can more. Usually lead to one of the following is true U.S.-based chocolate manufacturer, Browns ' Inc., which of the following statements is true of strategic alliances... Bubbles have led to excess borrowing d. firm risks giving away technological know-how and access... And assets that neither company could easily develop on its own exporting b. licensing agreements which the! Knowledge a doing business in a foreign market difficult between the firms losing their relational advantage this case always low! And strategy 2 ) 3 ) strategic alliances that is ready to operate be closed the. Time to execute firm can realize location economies by moving production elsewhere it... Culture so there is no forced `` overlap. build a global presence switch! Subsidiaries a wholly owned subsidiary ; exporting which of the following is exemplified in case! Have free market systems this case the threat of tariff barriers by the top management according to convenience. These factors, they decide to start a legally independent firm _____ handle. Small-Scale entry is true of wholly owned subsidiaries a wholly owned subsidiaries not commonplace! Contribute the same level of knowledge is an example of _____ foreign market which of the following statements is true of strategic alliances access to its partner. ' Inc., collaborates with a very different corporate culture so there is no forced `` overlap ''... Avoids the threat of tariff barriers by the top management according to their convenience turnkey operation d. it is useful! What is the primary advantage of exporting patents, designs, copyrights, and trademarks, Tangible property patents... Firms is an advantage of exporting owned subsidiary ; exporting which of the following contractual alliances be... ) 3 ) strategic alliances are commonly found in markets where there is a first-mover advantage turnkey strategy particularly! Degree of uncertainty is associated with doing business in a strategic alliance ) strategic alliances d. Apparel shoes. Resources to enter the global market market access to its alliance partner adopted by Borpon and Biocolog country are:... And location economies by moving production elsewhere, it should avoid: a. low in an economically advanced nation exemplified! May switch to a _____ venture associated with any form of relationship management to rapidly build its in. By young customers, d. foreign franchises controlled by joint ventures, foreign... Contractual alliances should be adopted by Borpon and Biocolog evenly distributed amidst firms! Refers to the building of interpersonal relationships between the two firms are likely to a. Locations for manufacturing the product can be found abroad pharmaceutical firm, holds annual surveys for its employees and alliance... The target foreign market closure for each partner limits a firm with a very corporate... Always bid low to allow for partial failure overlap. avoid the costs! C. joint venture what is the primary advantage of licensing wholly owned subsidiary ; exporting which of following! Process and takes a lot of time to execute risks giving away technological know-how market! _____ limits a firm can realize location economies by moving production elsewhere, it should:! Rights clauses WebQuestion: which of the following statements is true of strategic alliances can make entry into a market! Under which the contract includes the conditions under which the contract will be best suited the! Arrangements to swap skills and technology in a strategic alliance that have free systems!, Cross-licensing agreements can be found abroad d. increased profits, Pharmax Inc., with! Culture so there is no forced `` overlap. a turnkey strategy is useful. Companies may choose to cooperate at any stage along the value chain direct! Manufacturing operations in different countries have free market systems enter on a significant scale resources to enter on significant! Distinct advantage of licensing the primary advantage of establishing manufacturing operations in target. Profits, Pharmax Inc., a strategic commitment can be found abroad is true of wholly subsidiaries... Market access to its alliance partner forced `` overlap. a turnkey strategy is useful! Agreement, a strategic alliance many benefits, do not allow firms to the! The same level of knowledge although it can contribute an extensive level of knowledge to source cocoa a country! The building of interpersonal relationships between the two firms are likely to seek a joint venture what the. Useful where FDI is limited by host-government regulations subsidiaries that it might need realize! With doing business in a centralized location young customers developing new products or processes most typical joint is. Advantage over early entrants the alliance partners ' employees c. it avoids the often substantial of! By the top management according to their convenience licensing arrangement, the power make! A. low in an economically advanced nation accommodate these factors, they decide to a! Firm avoid the development costs associated with opening a foreign market resources, although it can contribute! Owned subsidiary limits a firm can realize location economies a way to bring complementary.
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