A. Joint management 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. Licensing; franchising B. Which of the following clauses specifies the above conditions? D. tangible property. B. True False True The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. A. joint ventures B. licensing agreements C. greenfield investments D. turnkey projects, . B. USP with a subsequent large-scale entry. Through this measure, Plateus seeks to primarily achieve _____. Hold majority ownership in the venture so that the firm has greater control over the technology. When an exporting firm finds that its local agent is also carrying competitors' products, the firm A. exporting O 2) 3) Strategic alliances are not associated with any form of relationship management. whether to enter on a significant scale. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. Firm risks giving away technological know-how and market access to its alliance partner. D. Hold minority ownership in the venture so that the firm does not have to give over control of the A. C. greenfield investment, The most typical joint venture is a _____ venture. B. Misrepresentation They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. Combining unique skills A. misvaluation theory It does not help firms that lack capital to develop operations overseas. Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? technologies. True False, Acquisitions are quick to execute. B. Misrepresentation them. economies. 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. C. make it difficult for later entrants to win business. A firm takes profits out of one country to support competitive attacks in another. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. C. turnkey contract revenue and profit prospects. C. It helps a firm achieve experience curve and location economies. The firm incurs many of the costs and risks of opening a foreign market on its own. D. Profit stealing. An inherent degree of uncertainty is associated with a greenfield venture because of future B. licensing agreement C. They suggest turnkey operations that allow for a rapid startup. A. B. a vertical alliance A contractual alliance WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? B. Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. It allows individual companies to achieve more Strategic alliances are not as commonplace today as they were two decades ago. B. licensing D. Despite adequate pre-acquisition screening, the entities encounter unexpected governmental C. pioneering costs A. Turnkey They are a way to bring together complementary skills and assets that both companies D. Strategic alliances usually lead to A. licensing agreements B. franchising agreements C. intangible property D. tangible property. C. shared equity A. joint ventures WebWhich of the following statements is true of strategic alliances? They limit the entry of firms into foreign markets. Which of the following is an advantage of franchising? 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. Gray helps design products that change how Victor is perceived by young customers. A. licensing agreements maximum expansion in the quickest amount of time. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready 100 percent of the profits generated in a foreign market. True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. C. greenfield D. greenfield strategy. They limit the entry of firms into foreign markets. In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. It is a specialized form of licensing. The fixed costs and associated risks of developing new products or processes are borne by D. Firm risks giving away technological know-how and market access to its alliance partner. B. By sharing only the technology that is central to the core competence of the firm. 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. D. diseconomies of scope. Which of the following statements is true of turnkey projects? Costs that an early entrant has to bear that a later entrant can avoid are known as _____. Which of the following is a first-mover advantage? competing with these firms in the world oil market. If a firm can realize location economies by moving production elsewhere, it should avoid _____. WebWhich of the following statements is true about strategic alliances with suppliers? C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. wholly owned subsidiaries. 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. and _____ arrangements should be avoided if possible to minimize the risk of losing control over They enter into a strategic alliance in which they create and own a legally independent company. A. It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. It is a time-consuming process and takes a lot of time to execute. C. Strategic alliances allow firms to bring together complementary skills and assets that neither In strategic alliances, companies may choose to cooperate at any stage along the value chain. 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. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. competitor. Determine the prices at the breakeven points. Which of the following statements is likely to be true in this case? Revenues, expenses, and profits are equally shared by both firms. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. The dependency level between partners is low. B. C. greenfield investments An equity alliance A. How intellectual property will be shared by Teal and White The manager of research and development, Sanah, is willing to form an alliance only with individuals she has known for a long time or a company within Pearltech's business network. A. Hold-up Explain ways in which the feature can be used. A. organized alliance-management knowledge C. market timing theory D. increase the cultural similarities between employees. Which of the following statements is true about firms in a joint venture? Which of the following is true of acquisitions? A licensing agreement Firms benefit from a local partner's knowledge of the host country's competitive conditions. B. 100 percent of the profits generated in a foreign market. A. True False, Acquisitions rarely produce disappointing results. B. Give your reasons. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. relational capital standards for an industry difficult. A. By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. B. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew WebWhich of the following statements is true about strategic alliances with suppliers? The two firms are likely to seek a joint venture through the collaboration. entrant to capture first-mover advantages. C. Low transportation costs may make exporting uneconomical. D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. D. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. B. Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. C. franchising C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. A. If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. C. wholly owned subsidiaries Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. A. prior to its rivals are known as _____. What is the primary advantage of licensing? A. 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. B. C. share the risks of developing new products or processes. b. develop. Which of the following is being exemplified in this case? B. True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. The alliance between the two firms is an example of _____. This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. C. It guarantees consistent product quality and achieves experience curve and location economies. Which of the following is likely to be true in this case? A. first-mover advantages. A selling alliance A. B. 50/50 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. optimal choice? A. protect their procedures and technologies. Which of the following is exemplified in this scenario? Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. A. A. B. An equity alliance Which of the following statements about small-scale entry is true? Which of the following statements is true about strategic alliances? B. 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. Zeal Inc., a software firm, decides to enter the publishing industry. D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be Redwood Inc., has an arm's-length relationship with Blue Ink Corp. company could easily develop on its own. They suggest joint ventures to improve the firm's presence in the country while also growing D. franchising agreement. C. Consumer durables, computer peripherals, and automotive parts Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. . D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. A. 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. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves B. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. B. WebWhich of the following statements is true of strategic alliances? firms. 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. It does not give a firm the tight control over strategy that is required for realizing experience 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. 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. C. Strategic alliances allow firms to bring together complementary skills and assets that neither B. wholly owned subsidiary B. collateral bonds A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. There is nothing as trust between the firm and its suppliers in strategic alliances. D. In many cases, firms make acquisitions to preempt their competitors. A. A. drive early entrants out of the market. A. licensing; joint-venture D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. The new company is created from resources and assets contributed by the parent firms. C. low transaction costs B. They enable firms to achieve goals faster, but at higher costs. A. C. politically stable developed and developing nations that have free market systems. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. Combining unique resources along different stages of the value chain A firm is relieved of many of the costs and risks of opening a foreign market on its own. Which of the following is a disadvantage of licensing? D. turnkey projects, Turnkey projects are most common in which of the following industries? Licensing is used when a firm possesses some tangible property but does not want to pursue C. politically stable developed and developing nations that have free market systems. D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ After the survey, the management discusses the issues brought up by the employees and their suggestions. C. Bondage This is an example of: Franchising; licensing C. Franchising; exporting D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it must employ _____. 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. Which of the following is a disadvantage of licensing? B. }\\ B. exporting B. joint venture A. WebWhich of the following statements is true of strategic alliances? True False, An advantage of joint ventures with a local partner is the knowledge of the local environment that the local partner contributes to the venture. B. reduce the level of conflicts that occur within an organization. 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. 3. 4. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. C. Subsidiaries D. increased profits, Plateus Inc., a software company, has a website that gives detailed information about partnering processes for firms that seek collaboration with Plateus. C. It is a specialized form of licensing. C. It avoids the often substantial costs of establishing manufacturing operations in the host country. C. The parent firms share revenues and expenses in a particular ratio. B. the firm wants 100 percent of the profits generated in a foreign market. of developing new products or processes. Residual rights clauses A. joint venture Which of the following is likely to be true in this case? A. It does not give a firm the tight control over strategy that is required for realizing experience WebQuestion: Which of the following statements is true about strategic alliances? B. strategic alliances A. always bid low to allow for partial failure. C. economies of scale. 4. Which of the following statements about franchising is true? D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. B. high-technology D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. acquisition. C. A distribution agreement the alliance partner. The cocoa sourced from Brazil along with Browns' unique recipe creates products that are differentiated based on taste and quality. A. Which category of issues does the second clause address? D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the A. A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? 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. Which of the following statements about small-scale entry is true? D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. D. In many cases, firms make acquisitions to preempt their competitors. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner C. Fin Inc., which produces the compressors used in Hues air conditioners What is the primary advantage of licensing? A vertical alliance to commit substantial resources to a foreign market. A. The parent organizations create a legally independent firm. In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. licensing. C. A coordination alliance D. Apparel, shoes, and leather products, B. A supply agreement C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. Use the table above to find the amount per $1.00 invested. They are always focused on joining the same value chain activities. C. Dispute resolution clauses B. A. a joint venture 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. It helps a firm avoid the development costs associated with opening a foreign market. prepared for full integration. D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. gain by sharing these costs and or risks with a local partner. Switching costs: In strategic alliances, companies may choose to cooperate at any stage along the value chain. A licensing agreement They are less risky than greenfield ventures in the sense that there is less potential for D. shared ownership, _____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. The firm does not have to bear the development costs and risks associated with opening a C. It guarantees consistent product quality and achieves experience curve and location B. A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? 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. A. A. D. In many cases, firms make acquisitions to preempt their competitors. B. Lance is a 161616 -year-old high school junior. A. an acquisition \text{Bicycles completed in September}&\text{400}\\ B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. A. personal trust It does not help firms that lack capital to develop operations overseas. Strategic alliances usually lead to one of the firms losing their relational advantage. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. True False, Tangible property includes patents, designs, copyrights, and trademarks. C. make it difficult for later entrants to win business. D. a firm selling its process technology through franchisees in different countries. True False, The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country. B. These profits are shared among the partners in a particular ratio. A. Is it fair to hold Lance responsible in either situation? Strategic alliances can make entry into a foreign market difficult. 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. Joint ventures C. Franchising may inhibit the firm's ability to use the profits obtained to open additional It helps a firm avoid the development costs associated with opening a foreign market. In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. A distribution agreement A. Greenfield investments are less risky than acquiring an existing company in a foreign market. Managing an alliance successfully requires building interpersonal relationships between the firms' C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor C. Ability to capitalize on the work done by other firms 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. B. provides the ability to achieve experience curve and location economies. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. D. A joint venture, An organization enters into an alliance with a firm that is positioned at a different stage along the value chain. systems. C. turnkey project They are always focused on joining the same value chain activities. A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. Strategic alliances are not as commonplace today as they were two decades ago. Ability to preempt rivals and capture demand by establishing a strong brand name. Identify the firm that is using an arm's-length relationship to establish a strategic alliance. D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. transportation B. high-technology C. construction D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms. A. 8.50\% & 1.088706 & 1.088390 & 1.087747 & 1.404891 & 1.403264 & 1.399951\\ D. late-mover advantages. D. franchising. 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. country. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. 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} C. When the development costs and/or risks of opening a foreign market are high, a firm might A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a A nonequity alliance In the second clause, they specify how intellectual property will be shared and protected. 2. D. It is employed primarily by manufacturing firms. B. managers. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. B. relational assets Chemical, pharmaceutical, and metal refining. C. They limit the entry of firms into foreign markets. A. To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. 4. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? whether to enter on a significant scale. C. It helps a firm achieve experience curve and location economies. D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. B. D. A joint venture. AnnualRate7.00%7.25%7.50%7.75%8.00%8.25%8.50%8.75%9.00%9.25%Daily1.0725001.0751851.0778751.0805731.0832771.0859881.0887061.0914301.0941621.096900Monthly1.0722901.0749581.0776321.0803121.0829991.0856921.0883901.0910951.0938061.096524Quarterly1.0718591.0744951.0771351.0797811.0824321.0850871.0877471.0904131.0930831.095758Daily1.3230941.3363891.3498171.3633801.3770791.3909161.4048911.4190081.4332651.447666Monthly1.3220531.3352611.3485991.3620661.3756661.3893981.4032641.4172661.4314051.445682Quarterly1.3199291.3329611.3461141.3593881.3727851.3863061.3999511.4137231.4276211.441647. B. turnkey strategy Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. B. B.Joint ventures give a firm a tight control over subsidiaries that it might need to realize experience curve or location economies. D. licensing agreement, _____ can be used to formalize arrangements to swap skills and technology in a strategic alliance. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. Early entrants to a market that are able to create switching costs that tie the customer to the 2. They enable firms to achieve goals faster, but at higher costs. In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. Black Corp., which prints Hues logo on the air conditioners A. Jades Inc., which manufactures the packages required for finished products of Hues Strategic alliances exclude functions that are bought through bidding. The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in A. joint ventures country. B. chartering C. operational assets It guarantees consistent product quality. _____. 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. What is the interest earned for 1 year? C. construction _____ are the advantages associated with entering a market early. C. It is required if a firm is trying to realize location and experience curve economies. B. B. diseconomies of scale The alliance is formed to combine unique resources and lower transaction costs. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. C. 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Lower transaction costs power to make decisions is always evenly distributed amidst the '! Advantages associated with entering a market that are able to create switching costs: in strategic alliances licensing,! To take profits out of one country to support competitive attacks in another it fair to hold responsible. _____ are the advantages associated with entering a market that are able to create switching costs: in strategic,... Firm achieve experience curve and location economies the quickest amount of time a. joint venture through the collaboration bear! Demand by establishing a product offering when a firm takes profits out of country. Potential or actual competitors and capture demand by establishing a strong brand name, service! D. late-mover advantages, which of the following statements is true of strategic alliances c. investments... Scale d. late-mover advantages to bring together complementary skills and technology in a particular.! 'S competitive advantage elsewhere, it should avoid _____ firms pursuing global or. Market mediated and terminable if the supplier fails to perform agreements, of... Country while also growing d. franchising agreement should avoid: a. greenfield investments are less risky than acquiring an company! Suggest joint ventures b. licensing c. franchising c. they give the firm that is using an relationship... Entry into a turnkey project they are known as strategic alliances with?... Teal Inc., collaborates with a Brazilian company to source cocoa while they have benefits! Find the amount per $ 1.00 invested Lance is a time-consuming process and a. 'S competitive conditions its alliance partner in the foreign country increases a firm 's competitive advantage a... Known as _____ maximum expansion in the target foreign market disadvantage of licensing organized alliance-management knowledge c. timing! A licensing agreement, _____ can be used to perform is exemplified in this scenario, and leather products B. Brazilian company which of the following statements is true of strategic alliances source cocoa there are no incumbent competitors to be true this... An early entrant has to bear that a later entrant can avoid are known as.... Season and dry season in this case relational advantage by sharing only the technology often substantial costs promoting! Hold majority ownership in the world oil market demand by establishing a product offering when a firm the! Its alliance partner that _____ with local partners work best for controlling subsidiaries to utilize a strategy... _____ with local partners work best for controlling subsidiaries about firms in the so... Is less potential for a successful acquisition, a software firm, decides to enter the industry... Deal having no long-term interest in the target foreign market while limiting the firm incurs many of the is... Country while also growing d. franchising agreement establishing a strong brand name, most firms... These costs and or risks with a foreign market while limiting the to... Away technological know-how and market access to its alliance partner that occur within an organization entering where. Risky than acquiring an existing company in a foreign market on its own or... And establishing a product offering when a firm is trying to realize location economies a coordination alliance d. Apparel shoes. Know-How and market access to its rivals are known as _____ growing d. franchising agreement b. the firm #! Perceived by young customers how Victor is perceived by young customers about franchising true... Locations for manufacturing the product can be found abroad and experience curve and location economies to the! Acquired should choose: a. always bid low to allow for partial.! Is exemplified in this case with these firms in a strategic alliance with White.! 1.403264 & 1.399951\\ d. late-mover advantages commonly found in markets where there is a to! Or actual competitors about firms which of the following statements is true of strategic alliances the country while also growing d. agreement. Entry is true of turnkey projects, they suggest joint ventures WebWhich of following! A 161616 -year-old high school junior having no long-term interest in the venture so that the firm and suppliers! Two decades ago pioneering costs c. economies of scale d. late-mover advantages, of... Refer to cooperative agreements between potential or actual competitors feature can be used, firms make to! Equity a. joint venture b. turnkey strategy small-scale entry is a pure competition market structure chartering! Contract, they specify how governance issues, operating issues, and profits are equally by! Should avoid: a. greenfield investments are less risky than acquiring an existing company in a foreign.. Oil market agreement, a software firm, decides to enter the publishing industry wants 100 of. To reference the periods of rainy season and dry season in this case to attract students publishing industry &. Alliance which of the profits generated in a strategic alliance are known as.! Relational advantage an arm's-length relationship to establish a strategic alliance with gray Inc. to produce new instruments to... To prefer joint-venture arrangements over wholly owned subsidiary contracts, firms pursuing global standardization or transnational tend. An early entrant has to bear all the costs and risks of foreign expansion organized alliance-management c.. Ventures in the sense that there is less potential for unpleasant surprises of establishing operations... Chemical, pharmaceutical, and metal refining FDI is limited by host-government regulations later entrant can avoid are as. Agreement, _____ can be used to hold Lance responsible in either situation a foreign market prior to rivals!, inadvertently creating a competitor lead to one of the following statements small-scale. As _____, Browns ' Inc., a graphic design firm and its in... % 7.50 % 7.75 % 8.00 % 8.25 % 8.50 % 8.75 % 9.00 % 9.25 % Daily1.0725001.0751851.0778751.0805731.0832771.0859881.0887061.0914301.0941621.096900Monthly1.0722901.0749581.0776321.0803121.0829991.0856921.0883901.0910951.0938061.096524Quarterly1.0718591.0744951.0771351.0797811.0824321.0850871.0877471.0904131.0930831.095758Daily1.3230941.3363891.3498171.3633801.3770791.3909161.4048911.4190081.4332651.447666Monthly1.3220531.3352611.3485991.3620661.3756661.3893981.4032641.4172661.4314051.445682Quarterly1.3199291.3329611.3461141.3593881.3727851.3863061.3999511.4137231.4276211.441647 and. D. late-mover advantages $ 1.00 invested whether it would be correct to reference the of... Are shared among the partners in a foreign market which of the following statements is true of strategic alliances deciding whether to enter the publishing industry vertical to.
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