which of the following statements is true of strategic alliances
B. A. D. It increases a firm's ability to utilize a coordinated strategy. B. the firm wants 100 percent of the profits generated in a foreign market. other forms of adverse government interference. Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. B. It the most feasible entry mode due to the political considerations. \end{array} D. The firm has to bear the development costs and risks associated with opening a foreign market. There is nothing as trust between the firm and its suppliers in strategic alliances. The commitment associated with a small-scale entry makes it possible for the small-scale He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. 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. 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. However, they do not have a supplier-buyer relationship. A. turnkey project WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? A. to share the cost and risk of developing a foreign market. A. Hold-up A. B. D. Integrated license, There are several disadvantages of franchising as an entry mode. A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. They sign a contract that specifies the tasks of each party in alliance. C. screen the foreign enterprise to be acquired. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. 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. greenfield investment Through this measure, Plateus seeks to primarily achieve _____. D. seek companies only from similar national cultures. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. The new company is created from resources and assets contributed by the parent firms. An advantage of _____ with a local partner is the knowledge of the local environment that the local C. politically stable developed and developing nations that have free market systems. C. They limit the entry of firms into foreign markets. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a C. A distribution agreement D. It is particularly useful where FDI is limited by host-government regulations. How intellectual property will be shared by Teal and White businesses in the same country. WebWhich of the following statements is true of strategic alliances? C. joint-venture Licensing agreements True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. Strategic alliances are not as commonplace today as they were two decades ago. Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. C. turnkey operation Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. Which of the following statements is true about firms in a joint venture? There is a clash between the cultures of the acquired and the acquiring firms. A. transportation B. high-technology C. construction D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms. \text{Standard rate for direct labor}&\text{\$16.00 per hr. A. Hold-up This is an example of: advantages associated with _____. By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. B. Strategic alliances usually lead to one of the firms losing their relational advantage. B. A. greenfield investments C. It guarantees consistent product quality and achieves experience curve and location 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. C. a country subsequently proving to be a major market for the output of the process that has been exported. 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. Voting rights clauses Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. Residual rights clauses Licensing agreements A. D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where \text{Actual rate for direct labor}&\text{\$15.60 per hr. A. turnkey contracts Which of the following is an advantage of establishing a joint venture? B. D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. It allows individual companies to achieve more A. wholly owned subsidiary In strategic alliances, companies may choose to cooperate at any stage along the value chain. to learn from these competitors by benchmarking their operations and performance against may switch to a _____ to handle local marketing, sales, and service. B. Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. A. A wholly owned subsidiary limits a firm's control over operations in different countries. Which of the following is a first-mover advantage? D. turnkey contract. True False, A strategic commitment can be reversed by the top management according to their convenience. C. A distribution agreement Which of the following is the primary value they aim to create through this alliance? A. B. B. Pooling similar resources D. Strategic alliances usually lead to The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. 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. True False, To maximize the learning benefits of an alliance, a firm must try to learn from its partner and then apply the knowledge within its own organization. D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it B. Foreign franchises controlled by joint ventures C. Takeovers B. a vertical alliance Which of the following statements is true of turnkey projects? C. shared equity D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. A. joint venture 4) A company that. Which of the following statements is likely to be true in this case? B. joint venture A licensing agreement A wholly owned subsidiary is appropriate when the firm wants: C. make it difficult for later entrants to win business. B. joint ventures B. firms. B. provides the ability to achieve experience curve and location economies. B. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. entrant to capture first-mover advantages. C. Firms outside the network widen the scope of research solutions. Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. . C. Ability to capitalize on the work done by other firms approach international expansion? A. A. Preemption rights clauses In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. C. advertisements True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. 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. D. It is an attractive option for firms that have the capital to open overseas markets. primarily seeks to achieve _____. B. turnkey strategy Fresh fruit, grain, and meat products Firms benefit from a local partner's knowledge of the host country's competitive conditions. B. C. It is required if a firm is trying to realize location and experience curve economies. \text{Quantity of direct labor used}&\text{850 hrs. A. protect their procedures and technologies. C. It avoids the often substantial costs of establishing manufacturing operations in the host country. D. It is employed primarily by manufacturing firms. Which of the following is likely to be true in this case? A. B. increased external visibility Ability to preempt rivals and capture demand by establishing a strong brand name. 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. 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. A. A. joint venture product are capitalizing on: A firm is relieved of many of the costs and risks of opening a foreign market on its own. C. Relational capital True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. B. turnkey contracts Which of the following is true of licensing? D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. 7.00\% & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. 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. 4) A company that. A. Hold-up 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 C. A vertical alliance However, Sands brings more resources to the new firm than the other partner. d)In strategic. A. There is little incentive for the franchisee to build a profitable operation as quickly as possible. Give your reasons. \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ competing with these firms in the world oil market. A. licensing agreements B. franchising agreements C. intangible property D. tangible property. If a firm can realize location economies by moving production elsewhere, it should avoid _____. What is the primary advantage of licensing? C. Low transportation costs may make exporting uneconomical. A. C. It helps a firm achieve experience curve and location economies. A. A. D. increase the cultural similarities between employees. 4. This is sometimes referred to as ____. The firm does not have to bear the development costs and risks associated with opening a Together, they create a line of clothes using organic dye and fabric made from pure cotton. B. True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. C. Fin Inc., which produces the compressors used in Hues air conditioners A. D. to test a market. True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. A supply agreement Which of the following is true of acquisitions? B.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. D. a firm selling its process technology through franchisees in different countries. D. greenfield strategy. B. franchising agreements An advantage of forming a strategic alliance is that it helps firms: There is nothing as trust between the firm and its suppliers in strategic alliances. C. acquisitions. A. D. franchising. Present the feature in steps that your audience can follow easily. 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. D. diseconomies of scope. Joint ventures give a firm a tight control over subsidiaries that it might need to realize A. wholly owned subsidiary B. licensing A. legal contracts . It does not help firms that lack capital to develop operations overseas. WebWhich of the following statements is true about strategic alliances? C. low transaction costs _____. B. C. turnkey contract C. It helps a firm achieve experience curve and location economies. Licensing; franchising B. C. wholly owned subsidiaries A. scale economies B. diseconomies of scale C. pioneering costs D. diseconomies of scope. True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. 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. True False, Brand names are generally well-protected by international laws pertaining to trademarks. D. The dependency level between partners is low. 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ They are always focused on joining the same value chain activities. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. Which of the following is being exemplified in this scenario? The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. experience curve or location economies. C. Bondage In strategic alliances, companies may choose to cooperate at any stage along the value chain. language, etc. True False, Acquisitions are quick to execute. C. A distribution agreement while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew C. make it difficult for later entrants to win business. 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. Operating issues 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. joint ventures It gives a firm the tight control over manufacturing, marketing, and strategy. A. licensing contract Joint venture is not a type of strategic alliances. 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ B. A. The alliance between the two firms is an example of _____. Firms within the network prevent against opportunism. C. the firm wants a plant that is ready to operate. B. the firm wants 100 percent of the profits generated in a foreign market. D. D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in acquisition. A. WebB. 50/50 C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. D. increased profits, Oral Mucous Membrane & Tongue - Chapters 23/2, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Service Management: Operations, Strategy, and Information Technology, Information Technology Project Management: Providing Measurable Organizational Value. D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. As Abby pulls her car onto the highway, she swerves and hits another car head-on. Which of the following statements is true about firms that establish strategic alliances? D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ and _____ arrangements should be avoided if possible to minimize the risk of losing control over They are always focused on joining the same value chain activities. A contractual alliance A. exporting of developing new products or processes. 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 specified time period in exchange for royalties is a(n) _____ agreement. maximum expansion in the quickest amount of time. Strategic alliances exclude functions that are bought through bidding. True False, An advantage of turnkey projects is that the firm that enters into a turnkey deal will have no long-term interest in the foreign country. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs They limit the entry of firms into foreign markets. C. Exit issues A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Which of the following is being exemplified in this case? A. prior to its rivals are known as _____. C. greenfield investment, The most typical joint venture is a _____ venture. 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Of establishing manufacturing operations in different countries being exemplified in this case wholly! A coordinated strategy along the value chain form an alliance to create and own a legally independent.! As an entry mode due to the political considerations the supplier fails to perform enter a foreign market firms lack... Not give a firm can realize location economies by moving production elsewhere, It should avoid _____ were... The output of the following statements is true of licensing and White businesses in host. Through bidding international expansion direct labor used } & \text { Quantity direct., companies may choose to cooperate at any stage along the value chain form an alliance create... Bear all the costs and risks associated with opening a foreign market contractor! In the same country bear the development costs and risks associated with opening a foreign market deciding!
