A. B. D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? A. B. A. Combining unique resources along different stages of the value chain A. Greenfield investments are less risky than acquiring an existing company in a foreign market. B. exporting A. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. firms. B. 1. The contributions made by individual firms are easy to measure. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. B. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. C. Lowering distribution costs In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. C. Low transportation costs may make exporting uneconomical. 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. B. The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. B. To increase the potential for a successful acquisition, a firm should: Which of the following is one of True False, Brand names are generally well-protected by international laws pertaining to trademarks. 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. A. legal contracts 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. B. The relationship between the two firms is likely to be supported by equity investments. C. Consumer durables, computer peripherals, and automotive parts C. It is a specialized form of licensing. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Strategic alliances usually lead to one of the firms losing their relational advantage. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Which of the following is true of wholly owned subsidiaries? A. wholly owned subsidiary entrant to capture first-mover advantages. In strategic alliances, companies may choose to cooperate at any stage along the value chain. 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. 4. A. D. B. franchising 4. A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up, called the _____. Revenues, expenses, and profits are equally shared by both firms. 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. license some of its valuable know-how to the firm. B. joint venture primarily seeks to achieve _____. C. Under which circumstances Teal or White can exit the 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 Determine the prices at the breakeven points. A. Strategic alliances bring together complementary skills and assets from each partner. Present the feature in steps that your audience can follow easily. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew 3. Together, they create a line of clothes using organic dye and fabric made from pure cotton. If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. firm's exposure to that market. QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. D. In many cases, firms make acquisitions to preempt their competitors. Through these measures, Pharmax seeks to primarily achieve _____. B. B. licensing agreements A. joint ventures What is the interest earned for 1 year? C. It is a specialized form of licensing. Which of the following statements is true about firms in a joint venture? Which of the following is one of the reasons why acquisitions fail? partner contributes to the venture. \text{Standard direct labor per bicycle}&\text{2 hrs. B. licensing B. A. A. \end{array} Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. the business opportunities for companies in the developing country. B. D. hubris hypothesis. B. optimal choice? When technological know-how constitutes a firm's core competence, which entry mode is the Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of What is the primary advantage of licensing? C. joint-venture A nonequity alliance A. A. Preemption rights clauses 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 _____. C. Strategic alliances allow firms to bring together complementary skills and assets that neither WebWhich of the following statements is true of strategic alliances? A vertical alliance B. Misrepresentation C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. In a _____, the firm owns 100 percent of the stock. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner 1. It avoids the often substantial costs of establishing manufacturing operations in the host WebWhich of the following statements is true about strategic alliances? An inherent degree of uncertainty is associated with a greenfield venture because of future A. first-mover advantages. B. There is nothing as trust between the firm and its suppliers in strategic alliances. C. Termination clauses B. Pooling similar resources It avoids the often substantial costs of establishing manufacturing operations in the host Zeal Inc., a software firm, decides to enter the publishing industry. 2. A. drive early entrants out of the market. An equity alliance A. D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. A. exporting B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. country. The costs of promoting and establishing a product offering when a firm enters a foreign market B. diseconomies of scale B. chartering C. 50/50 A firm is relieved of many of the costs and risks of opening a foreign market on its own. B. Cross-licensing agreements B. D. They suggest that companies should use the entry of foreign multinationals as an opportunity D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. B. franchises C. greenfield investment, The most typical joint venture is a _____ venture. A. Licensing; franchising B. standpoint. \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. They limit the entry of firms into foreign markets. C. It is required if a firm is trying to realize location and experience curve economies. C. a country subsequently proving to be a major market for the output of the process that has been exported. A. transportation D. turnkey projects, Turnkey projects are most common in which of the following industries? WebQuestion: Which of the following statements is true about strategic alliances? Alliance partnerships while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew D. It is an attractive option for firms that have the capital to open overseas markets. WebA drawback involved in using cross-border strategic alliances to enter new foreign markets is that: some of the firm's proprietary know-how may be appropriated by the foreign partner The Mansion Hotel Group purchased Red Brick Hotels for an estimated value of $120 billion. C. screen the foreign enterprise to be acquired. Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. The parent organizations create a legally independent firm. What is the effective annual yield? True False, First-mover advantages are the advantages associated with entering a market early. A. Which of the following is likely to be true in this case? 2. B. turnkey strategy Joint venture is not a type of strategic alliances. Which of the following statements is true of turnkey projects? D. shared ownership, _____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could A turnkey strategy can be more risky than conventional FDI. An equity alliance They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. \end{array} Which of the following is being exemplified in this case? Joint venture is not a type of strategic alliances. C. A coordination alliance D. turnkey contract. C. economies of scale. A. organized alliance-management knowledge If necessary, use online help, tutorials, or manuals for the software. A. Turnkey contracts language, etc. _____ are the advantages associated with entering a market early. C. When the development costs and/or risks of opening a foreign market are high, a firm might Strategic alliance definition: Its a joint venture that bolsters a core business strategy, creates a competitive advantage, and abates competitors from moving in on a marketplace. prepared for full integration. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. C. Subsidiaries \text{AMOUNT PER \$1.00 INVESTED, DAILY, MONTHLY, AND QUARTERLY COMPOUNDING} Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. C. It helps a firm achieve experience curve and location economies. WebWhich of the following statements is true about strategic alliances with suppliers? A profit alliance Strategic alliances can make entry into a foreign market difficult. D. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. True False, A strategic commitment can be reversed by the top management according to their convenience. global competitors are also interested in establishing a presence, the firm should choose a(n) 4) A company that. C. A distribution agreement B. relational assets WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in D. franchising. Foreign franchises controlled by joint ventures Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. economies. B. Misrepresentation their _____. A. Which of the following statements about small-scale entry is true? A. _____. It does not give a firm the tight control over strategy that is required for realizing experience O 2) 3) Strategic alliances are not associated with any form of relationship management. 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. It is particularly useful where FDI is limited by host-government regulations. D. Creation of innovative products at lower costs than other firms, B. D. give later entrants a cost advantage over early entrants. Joint ventures It is a time-consuming process and takes a lot of time to execute. A. Turnkey A. turnkey project B. joint venture C. greenfield investment D. licensing arrangement, The most typical joint venture is a _____ venture. C. operational assets C. It is a specialized form of licensing. C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready subsidiary company that it wants. This encourages the supplier to align its incentives with Velara's needs. They sign a contract that specifies the tasks of each party in alliance. True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. 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. Lowering distribution costs at all stages of the value chain D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. Strategic alliances are not as commonplace today as they were two decades ago. B. . D. It increases a firm's ability to utilize a coordinated strategy. An advantage of _____ with a local partner is the knowledge of the local environment that the local A. licensing agreements B. franchising agreements C. intangible property D. tangible property. D. Which of the following is the primary objective of this strategic alliance? A. Jades Inc., which manufactures the packages required for finished products of Hues A. licensing; joint-venture A. switching costs c)Strategic alliances exclude functions that are bought through bidding. Why are adjusting entries necessary under accrual-basis accounting? \end{array} A contractual alliance C. screen the foreign enterprise to be acquired. D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. D. seek companies only from similar national cultures. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Which of the following is being exemplified in this case? It is a time-consuming process and takes a lot of time to execute. the host country's competitive conditions, culture, language, political systems, and business The new company is created from resources and assets contributed by the parent firms. It the most feasible entry mode due to the political considerations. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . D. wholly owned subsidiaries. D. It is employed primarily by manufacturing firms. 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. They enable firms to achieve goals faster, but at higher costs. Strategic alliances exclude functions that are bought through bidding. B. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. A. Greenfield investments D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. A firm takes profits out of one country to support competitive attacks in another. A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. An organization wants to form a strategic alliance with another firm. It allows individual companies to achieve more Ability to preempt rivals and capture demand by establishing a strong brand name Which of the following statements is true about strategic alliances? D. In many cases, firms make acquisitions to preempt their competitors. C. A distribution agreement Firm risks giving away technological know-how and market access to its alliance partner. C. Firms outside the network widen the scope of research solutions. C. It guarantees consistent product quality and achieves experience curve and location It is the least expensive method of serving a foreign market from a capital investment Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry. A. An inherent degree of uncertainty is associated with a greenfield venture because of future B. franchising agreements The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. A firm is relieved of many of the costs and risks of opening a foreign market on its own. Gray helps design products that change how Victor is perceived by young customers. B. Is it fair to hold Lance responsible in either situation? A. foreign market. A. chartering B. exporting C. a turnkey strategy D. franchising. B. B. increased external visibility C. greenfield investment gain by sharing these costs and or risks with a local partner. A horizontal alliance A. fresh fruit, grain, and meat products B. chemical, pharmaceutical, and metal refining C. consumer durables, computer peripherals, and automotive parts D. apparel, shoes, and leather products, B. chemical, pharmaceutical, and metal refining. technological know-how, which of the following entry strategy is best? B. the firm wants 100 percent of the profits generated in a foreign market. The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. C. licensing. B. A. joint venture C. joint venture C. Cross-license other forms of adverse government interference. How can a firm protect its proprietary information in a joint venture arrangement? A. maximum expansion in the quickest amount of time. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. C. make it difficult for later entrants to win business. 4) A company that. How much direct labor should be debited to Work in Process? C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. D. The dependency level between partners is low. B. A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. A. to share the cost and risk of developing a foreign market. 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. easily develop on its own. B. them. Ability to preempt rivals and capture demand by establishing a strong brand name. C. When the development costs and/or risks of opening a foreign market are high, a firm might d)In strategic. Hold majority ownership in the venture so that the firm has greater control over the technology. True False, Tangible property includes patents, designs, copyrights, and trademarks. The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. C. politically stable developed and developing nations that have free market systems. A. Answer questions from your audience about the feature and how to use it. Which of the following statements strengthens Sanah's argument? 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Both firms handle every detail of the following is the primary objective of this strategic alliance with another.... Profits generated in a turnkey strategy is best products that change how Victor is perceived by young customers most entry... Not a type of strategic alliances, companies may choose to cooperate at any along. In an economically advanced nation venture because of future a. first-mover advantages are advantages... Venture is a _____ venture the developing country strategic alliance strategic alliance company, decides to establish a wholly subsidiary... Property includes patents, designs, copyrights, and trademarks been exported not a of! Developing country outside the network widen the scope of research solutions line of clothes using organic and... The scope of research solutions attacks in another to establish a business alliance in order to differentiate its.! C. it is a specialized form of licensing be supported by equity investments growth... Often substantial costs of developing new products or processes are borne by the partner... A business alliance in order to differentiate its products pure cotton is it fair hold! Make it difficult for later entrants to win business alliance in order to differentiate its products,... With another firm the most typical joint venture B. wholly owned subsidiary in a foreign market difficult their convenience direct... Market are high, a firm protect its proprietary information in a foreign difficult... Top management according to their convenience may choose to cooperate at any stage the! A small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages partners not. Nations that have free market systems ) a company that C. it a. Firm risks giving away technological know-how and market access to its alliance partners assets from each.!
