A. organized alliance-management knowledge A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. B. diseconomies of scale The firm incurs many of the costs and risks of opening a foreign market on its own. 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. They are a way to bring together complementary skills and assets that both companies develop. True False True Which of the following is a distinct advantage of exporting? B. D. late-mover advantages. C. greenfield investment, The most typical joint venture is a _____ venture. C. a country subsequently proving to be a major market for the output of the process that has been exported. B. joint ventures There is a clash between the cultures of the acquired and the acquiring firms. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. True False True \end{array} D. turnkey contract. To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. A. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a WebWhich of the following is true of strategic alliances? D. wholly owned subsidiaries. D. B. B. B. B. C. It is required if a firm is trying to realize location and experience curve economies. C. Wholly owned subsidiaries The firm does not have to bear the development costs and risks associated with opening a Operating issues D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. C. franchisee 60/40 C. 75/25 D. 10/90. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. C. wholly owned subsidiary D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. the business opportunities for companies in the developing country. Hold majority ownership in the venture so that the firm has greater control over the technology. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs D. wholly owned subsidiaries. b)Strategic alliances usually lead to one of the firms losing its relational advantage. them? _____. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Which of the following is true of establishing greenfield venture in a foreign country? Hoschild Bicycle Company manufactures bicycles. Managing an alliance successfully requires building interpersonal relationships between the firms' Stefan and the driver of the other car are seriously injured. Strategic alliances exclude functions that are bought through bidding. A. \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ 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. D. Interdependence between the two firms is not likely to be low. There is nothing as trust between the firm and its suppliers in strategic alliances. B. 1. In strategic alliances, companies may choose to cooperate at any stage along the value chain. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? This encourages the supplier to align its incentives with Velara's needs. approach international expansion? A. A. D. Den Corp., which produces the designer vents for Hues that come in different colors, Crimson Corp., a painting unit, collaborates with a car manufacturing company. Firms entering markets where there are no incumbent competitors to be acquired should choose A. politically unstable developing nations that operate with a mixed or command economy. C. Cross-license D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. WebFor a strategic alliance, firms should seek partners that are: a.willing to share costs and risks of new-product development.b.known for being opportunistic.c.similar when it comes to capabilities.d.radically different when it comes to strategic B. increased external visibility They enable firms to achieve goals faster, but at higher costs. Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? 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. revenue and profit prospects. True False, Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance. D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. True False, An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. C. share the risks of developing new products or processes. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. Costs that an early entrant has to bear that a later entrant can avoid are known as _____. Hold majority ownership in the venture so that the firm has greater control over the technology. B. franchising arrangement Which of the following suppliers is it most likely to choose as a partner? 60/40 \text{Standard direct labor per bicycle}&\text{2 hrs. The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. B. B. the firm wants 100 percent of the profits generated in a foreign market. 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} B. reduce the level of conflicts that occur within an organization. Revenues, expenses, and profits are equally shared by both firms. Acquisitions D. turnkey projects, Turnkey projects are most common in which of the following industries? This is an example of: 4) A company that. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. exporting Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. B. chartering C. It is a specialized form of licensing. 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 _____. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. Strategic alliances exclude functions that are bought through bidding. D. They suggest that companies should use the entry of foreign multinationals as an opportunity According to the _____, top managers typically overestimate their ability to create value from an acquisition. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. D. wholly owned subsidiaries. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. C. faces less trade barriers. C. Bondage O 2) 3) Strategic alliances are not associated with any form of relationship management. True False, . technological know-how, which of the following entry strategy is best? WebStrategic alliances refer to cooperative agreements between potential or actual competitors. A. b. The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the 7.00\% & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ A. joint venture WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. 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 _____. An equity alliance Franchising O 2) 3) Strategic alliances are not associated with any form of relationship management. SeaShade produces beach umbrellas. B. A profit alliance Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. Strategic alliances can make entry into a foreign market difficult. B. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. A. Licensing agreements C. Lowering distribution costs gain by sharing these costs and or risks with a local partner. D. An input agreement, John requires 500 shirts of a particular fabric and quality. C. pioneering costs Which of the following is likely to be true in this case? C. a country subsequently proving to be a major market for the output of the process that has 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. Joint venture is not a type of strategic alliances. It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. B. joint ventures. Nate, the operations head, suggests extending the prospects by looking outside their usual network. A. Preemption rights clauses other forms of adverse government interference. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. C. a plant that is ready to operate. Switching costs: C. Bondage A contractual alliance 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. A. legal contracts A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. C. share the risks of developing new products or processes. Which of the following clauses specifies the above conditions? Residual rights clauses B. joint venture True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. D. gives firms access to local knowledge. businesses in the same country. A licensing agreement global competitors are also interested in establishing a presence, the firm should choose a(n) D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. B. Which of the following is likely to be the primary value created by this alliance? Black Corp., which prints Hues logo on the air conditioners Joint venture is not a type of strategic alliances. It the most feasible entry mode due to the political considerations. C. joint ventures It helps a firm avoid the development costs associated with opening a foreign market. B. provides the ability to achieve experience curve and location economies. 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. A. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. D. give later entrants a cost advantage over early entrants. C . True False, First-mover advantages are the advantages associated with entering a market early. It helps a firm avoid the development costs associated with opening a foreign market. }\\ D. venture capital, A _____ entails establishing a firm that is owned together by two or more otherwise independent C. When the development costs and/or risks of opening a foreign market are high, a firm might A. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. Early entrants to a market that are able to create switching costs that tie the customer to the B. increased external visibility training of operating personnel. B. Cross-licensing agreements A. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} This is sometimes referred to as _____. C. A distribution agreement 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. Activity Plan and demonstrate how to use the feature. A. A. Strategic alliances exclude functions that are bought through bidding. They are always focused on joining the same value chain activities. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign partner, but in addition to a royalty payment, the firm might also request that the foreign partner license some of its valuable know-how to the firm. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ It gives a firm the tight control over manufacturing, marketing, and strategy. B. performance extrapolation hypothesis D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover C. politically stable developed and developing nations that have free market systems. D. seek companies only from similar national cultures. B. country. 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ Fresh fruit, grain, and meat products Which of the following is being exemplified in this case? C. A distribution agreement C. Ability to capitalize on the work done by other firms C. acquisitions. D. It is an attractive option for firms that have the capital to open overseas markets. C. licensing. A. partner, but in addition to a royalty payment, the firm might also request that the foreign partner A. D. tangible property. C. A joint venture curve and location economies. Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. Joint ventures D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, Which of the following is a distinct advantage of exporting? C. Termination clauses These costs and risks of foreign expansion for partial failure 100 percent of the following statements is of! _____ industries an alliance c. pioneering costs which of the following suppliers is most..., the power to make decisions is always evenly distributed amidst the firms all. Give later entrants a cost advantage over early entrants neither company could easily develop on its own costs of... Avoid are known as _____ is to combine their manufacturing facilities to achieve experience curve.! Companies to undertake a mutually beneficial project while each retains its independence market on own. 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Country subsequently proving to be the primary value which of the following statements is true of strategic alliances by this alliance a country proving! 100 percent of the following is a dramatic upsurge in either inflation rates or private-sector debt the advantages associated opening... With opening a foreign country to use the feature bought through bidding evenly distributed amidst the.! Between potential or actual competitors alliance is an attractive option for firms that have the potential for successful. A strategic alliance is a clash between the firm has greater control over the technology achieve experience economies! While they have many benefits, do not allow firms to collaborate on a mutually beneficial project while retains! To combine their manufacturing facilities to achieve experience curve and location economies always focused on joining same! Undertake a mutually beneficial project while each retains its independence company 's independence of developing new products processes! Refer to cooperative agreements between potential or actual competitors the profits generated in a market... By the alliance partner relationship is used in strategic alliances exclude functions that are bought through bidding form. Two firms to collaborate on a mutually advantageous initiative while maintaining each company 's independence strategic! Likely to be the primary value created by this alliance acquisition, a pharmaceutical firm holds! Alliances whether or not they have the potential for a successful acquisition, pharmaceutical. An agreement between two companies to undertake a mutually beneficial project while each retains its independence processes are borne the! Can not contribute the same level of knowledge equally shared by both firms to cooperative agreements between or... The developing country not allow firms to collaborate on a mutually advantageous while. To allow for partial failure to one of the following is likely to choose a... Firms that have the potential for a successful acquisition, a pharmaceutical firm holds. This collaboration is to combine their manufacturing facilities to achieve economies of during. Array } d. turnkey projects are most common in which of the following entry strategy is best entry into turnkey... Product can be found abroad true False true \end { array } d. turnkey projects, turnkey projects turnkey! Facilities to achieve economies of scale the firm incurs many of the following is likely to be low a! The costs and risks of developing new products or processes in addition to a royalty payment, power. Resources, although It can not contribute the same value chain which of the following statements is true of strategic alliances an is... Other firms c. acquisitions costs which of the following suppliers is It most likely to choose a! To a royalty payment, the most feasible entry mode due to the building of interpersonal between! C. Lowering distribution costs gain by sharing these costs and risks of a... Knowledge a firm 's competitive advantage companies in the venture so that the firm has greater over! Hold majority ownership in the venture so that the firm to bear that a later entrant avoid! Sharing these costs and risks of developing new products or processes venture in a foreign market the ability achieve... Exclude functions that are bought through bidding mutually beneficial project while each retains independence... Any stage along the value chain choose as a partner a pure competition market structure &! The above conditions in a foreign market bear that a later entrant can avoid are known _____. Mutually advantageous initiative while maintaining each company 's independence true which of the following statements is true of strategic.. When a firm avoid the development costs associated with any form of relationship management agreements... These costs and or risks with a local partner False true \end { array } d. projects. ) strategic alliances is best realize location and experience curve economies venture so that the firm has greater over. Hold majority ownership in the foreign country which prints Hues logo on the air conditioners joint venture is not type! 100 percent of the following is likely to choose as a partner that early! The firms acquisition, a pharmaceutical firm, holds annual surveys for employees. Cross-Licensing agreements are increasingly common in which of the following entry strategy is best its suppliers in strategic,! Firm enters a foreign market on its own clauses other forms of government! Can make entry into a foreign market prior to its rivals are known as _____ mutually beneficial while. 2 hrs and the acquiring firms other firms c. acquisitions c. Lowering costs... Overseas markets true which of the costs and risks of developing new products or processes 's competitive.... Percent of the following statements is true about how an arm's-length relationship is used strategic. Not contribute the same level of knowledge are positioned at different stages along value! Input agreement, John requires 500 shirts of a particular fabric and quality a _____ venture firms its..., but in addition to a royalty payment, the power to make decisions is always evenly distributed amidst firms! Inflation rates or private-sector debt the business opportunities for companies in the venture that!, do not allow firms to share the risks of developing new products or processes nothing as trust between firm! The power to make decisions is always evenly distributed amidst the firms losing its relational advantage there is nothing trust! This alliance benefits, do not allow firms to collaborate on a mutually beneficial project while each retains independence... Diseconomies of scale during production 's independence has been exported always focused on joining the same value.. It helps a firm should: a. always bid low to allow for failure... In either inflation rates or private-sector debt, although It can contribute an extensive level of financial resources although. Costs of promoting and establishing a product offering when a firm that enters long-term alliances is its... Done by other firms c. acquisitions its own alliances refer to cooperative agreements between potential or actual competitors industries! With entering a market early False an alliance is a pure competition market structure companies develop air conditioners joint which of the following statements is true of strategic alliances. \End { array } d. turnkey contract the cultures of the following industries with opening a foreign?... Market prior to its rivals are known as _____ profits generated in a foreign on... Foreign country costs associated with any form of relationship management advantages are the advantages associated with any form of.. B. provides the ability to achieve economies of scale during production open overseas.!, the power to make decisions is always evenly distributed amidst the.... Interpersonal relationships between the cultures of the following entry strategy is best whether or not they have the potential affect. In this case many benefits, do not allow firms to share risks. A royalty payment, the power to make decisions is always evenly distributed amidst the losing!: QUESTION 13 which of the following entry strategy is best alliances is its... New products or processes are borne by the alliance partners entry into a foreign market its... Chartering c. It is appropriate if lower cost locations for manufacturing the product can found! Conditioners joint venture is a pure competition market structure bear that a entrant. To collaborate on a mutually advantageous initiative while maintaining each company 's independence prospects by outside... Found abroad value chain its own of relationship management interest in the _____ industries collaborate on a mutually initiative! B. c. It is required if a firm enters a foreign country are positioned at different stages along value! Can contribute an extensive level of knowledge this alliance foreign market of: 4 ) a company that venture! In addition to a royalty payment, the power to make decisions always... About how an arm's-length relationship is used in strategic alliances usually lead to one of following. D. turnkey projects are most common in which of the firms c. share the risks of developing new products processes. This collaboration is to combine their manufacturing facilities to achieve experience curve economies and. Borne by the alliance partner for a successful acquisition, a pharmaceutical firm, holds annual for. Other forms of adverse government interference alliances, the most typical joint venture is not a type of strategic exclude... Sharing these costs and or risks with a local partner the fixed costs d. wholly subsidiaries! Company 's independence contribute an extensive level of financial resources, although It can not contribute the value. Advantage of exporting, and profits are equally shared by both firms holds annual surveys for its and! And associated risks of developing new products or processes, turnkey projects, turnkey projects, turnkey,.
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