It guarantees consistent product quality. 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. D. It increases a firm's ability to utilize a coordinated strategy. 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. product are capitalizing on: D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of B. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. A. 2. Which of the following is being exemplified in this scenario? C. 75/25 economies. C. A coordination alliance C. Structured transfer agreements Which of the following is true of acquisitions? When the development costs and/or risks of opening a foreign market are high, a firm might gain by sharing these costs and or risks with a local partner. A. prepared for full integration. A. organized alliance-management knowledge C. wholly owned subsidiary It is a time-consuming process and takes a lot of time to execute. A. integrated licensing B. \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ An equity alliance Prepare a written outline of the points of your presentation. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." True False True The firm does not have to bear the development costs and risks associated with opening a An organization wants to form a strategic alliance with another firm. Small-scale entry is a way to gather information about a foreign market before deciding An advantage of forming a strategic alliance is that it helps firms: \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ A supply agreement B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." 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. It helps a firm avoid the development costs associated with opening a foreign market. It is the best choice if lower-cost manufacturing locations are available abroad. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. C. Strategic alliances allow firms to bring together complementary skills and assets that neither B. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. B. wholly owned subsidiary C. It is a specialized form of licensing. A. A. Hold-up There is nothing as trust between the firm and its suppliers in strategic alliances. A. 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 A. C. Which of the following is true of wholly owned subsidiaries? Lowering distribution costs at all stages of the value chain It tends to involve more short-term commitments than licensing. Stefan and the driver of the other car are seriously injured. 7.00\% & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ C. Exit issues Which of the following is being exemplified in this case? A. turnkey project B. joint venture C. greenfield investment D. licensing arrangement, The most typical joint venture is a _____ venture. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. True False, First-mover advantages are the advantages associated with entering a market early. C. Franchising; exporting A. Greenfield investments are less risky than acquiring an existing company in a foreign market. True False, By its very nature, licensing increases a firm's ability to utilize a coordinated strategy. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. C. economies of scale. B. easily develop on its own. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. 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. Use the table above to find the amount per $1.00 invested. B. licensing B. Cross-licensing agreements A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. behave in an opportunistic manner toward each other. 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. Redwood Inc., has an arm's-length relationship with Blue Ink Corp. C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Which of the following is an advantage of franchising? C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. technology. How can a firm protect its proprietary information in a joint venture arrangement? A. personal trust A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. strategic alliances WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. C. greenfield investments Firm risks giving away technological know-how and market access to its alliance partner. WebWhich of the following is true of strategic alliances? A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. B. the firm wants 100 percent of the profits generated in a foreign market. A. A firm takes profits out of one country to support competitive attacks in another. A licensing agreement C. share the risks of developing new products or processes. Nate, the operations head, suggests extending the prospects by looking outside their usual network. C. make it difficult for later entrants to win business. A. Turnkey A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. A. Hold-up Joint venture is not a type of strategic alliances. A. Turnkey projects are most common in industries which use simple, inexpensive production C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. D. Foreign franchises controlled by joint ventures, D. Foreign franchises controlled by joint ventures. True False, Brand names are generally well-protected by international laws pertaining to trademarks. the host country's competitive conditions, culture, language, political systems, and business A. scale economies Firms within the network could result in inbreeding of ideas. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves competing with these firms in the world oil market. D. It is particularly useful where FDI is limited by host-government regulations. foreign market. _____. C. politically stable developed and developing nations that have free market systems. B. Which of the following statements is likely to be true in this case? Strategic alliances exclude functions that are bought through bidding. 4. 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. C. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. C. Under which circumstances Teal or White can exit the alliance A. Which of the following is likely to be the primary value created by this alliance? A firm is relieved of many of the costs and risks of opening a foreign market on its own. A selling alliance WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. C. a country subsequently proving to be a major market for the output of the process that has been exported. To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. WebWhich of the following is true of strategic alliances? Costs that an early entrant has to bear that a later entrant can avoid are known as _____. acquisition. C. greenfield They are a way to bring together complementary skills and assets that both companies WebWhich of the following statements is true about strategic alliances with suppliers? Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: curve and location economies. C. It helps a firm achieve experience curve and location economies. B. B. Pooling similar resources B. Misrepresentation B. USP A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. Strategic alliances are not as commonplace today as they were two decades ago. D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a The acquired firm often overpays for the assets of the acquiring firm. True False, If a firm is trying to enter a market where there are already well-established companies, and where global competitors are also interested in establishing a presence, the firm should choose a greenfield investment. C. Termination clauses Zeal Inc., a software firm, decides to enter the publishing industry. Joint venture is not a type of strategic alliances. competitor. A. top management staff Which of the following suppliers is it most likely to choose as a partner? D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. A. joint ventures Which of the following is being exemplified in this case? An advantage of exporting products to another country is that it: C. politically stable developed and developing nations that have free market systems. Which of the following is exemplified in this scenario? B. performance extrapolation hypothesis Combining unique resources along different stages of the value chain Licensing agreements C. It is required if a firm is trying to realize location and experience curve economies. Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. country. 1. True False, A joint venture is often politically more acceptable than a wholly owned subsidiary and brings a degree of local knowledge to the subsidiary. involvement. The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. These profits are shared among the partners in a particular ratio. WebWhich of the following statements is true of strategic alliances? }\\ businesses in the same country. True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. B. C. A joint venture Determine the prices at the breakeven points. C. Relational capital B. d)In strategic. C. Bondage D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. B. D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where True False, Franchising enables a firm to quickly build a global presence. They limit the entry of firms into foreign markets. True False, . 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. A. True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. C. It cannot be used when a firm possesses some intangible property that might have business Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of firms. C. make it difficult for later entrants to win business. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. A. D. In many cases, firms make acquisitions to preempt their competitors. A. wholly owned subsidiary A. joint venture It does not help firms that lack capital to develop operations overseas. WebB. Which of the following statements about franchising is true? B. Licensing is used when a firm possesses some tangible property but does not want to pursue True False, The costs and risks associated with doing business in a foreign country are typically high in an economically advanced and politically stable democratic nation. D. 10/90. 2. D. turnkey projects, Turnkey projects are most common in which of the following industries? Alliance partnerships They enable firms to achieve goals faster, but at higher costs. True False, . It gives a firm the tight control over manufacturing, marketing, and strategy. D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. There is little incentive for the franchisee to build a profitable operation as quickly as possible. Licensing; franchising 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. D. developing nations where speculative financial bubbles have led to excess borrowing. B. a vertical alliance 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ A. Hold-up foreign market. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. Evaluation You will be evaluated on how well you meet the following performance indicators: What is the name for the value given up by a buyer and a seller in a business transaction? They suggest that franchising should be used in order to minimize risk and allow for the Which of the following statements is true of turnkey projects? B. exporting A. Hold-up D. Licensing agreements. B. franchising arrangement d)In strategic. 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. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. D. The firm has to bear the development costs and risks associated with opening a foreign market. It is the least expensive method of serving a foreign market from a capital investment standpoint. In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. \text{AMOUNT PER \$1.00 INVESTED, DAILY, MONTHLY, AND QUARTERLY COMPOUNDING} D. Team building. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. Which of the following statements is true about firms in a joint venture? Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. C. Fin Inc., which produces the compressors used in Hues air conditioners True False, Acquisitions are quick to execute. C. screen the foreign enterprise to be acquired. They are always focused on joining the same value chain activities. C. operational assets D. Firm risks giving away technological know-how and market access to its alliance partner. ground up, called the _____. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. Strategic alliances can make entry into a foreign market difficult. firms. A. What is the effective annual yield? Strategic alliances exclude functions that are bought through bidding. C. It avoids the often substantial costs of establishing manufacturing operations in the host country. C. Bondage A. It does not give a firm the tight control over strategy that is required for realizing experience B. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. 50/50 B. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. D. takeovers. their _____. A. to commit substantial resources to a foreign market. A. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. Lower research and development costs and marketing costs than other firms A. Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. A. C. turnkey project C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. Firms within the network prevent against opportunism. Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. approach international expansion? B. Joint ventures give a firm a tight control over subsidiaries that it might need to realize while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. A. An equity alliance Which of the following is a distinct advantage of exporting? 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. B. wholly owned subsidiary; exporting How much direct labor should be debited to Work in Process? A. In strategic alliances, companies may choose to cooperate at any stage along the value chain. 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 _____. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. Interdependence between the two firms is not likely to be low. C. market timing theory The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} A. transportation B. high-technology C. construction D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms. A. exporting 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. 100 percent of the profits generated in a foreign market. A. B. a firm entering into a turnkey deal having no long-term interest in the foreign 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. An advantage of _____ with a local partner is the knowledge of the local environment that the local B. franchising WebQuestion: Which of the following statements is true about strategic alliances? D. Firm risks giving away technological know-how and market access to its alliance partner. D. increase the cultural similarities between employees. them? Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. B. joint ventures competing with these firms in the world oil market. It does not give a firm the tight control over strategy that is required for realizing experience A. licensing; joint-venture A. them. A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. A. systems. C. licensing agreement 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. An alliance is likely to rely most on relationships between individuals when it is based on _____. It helps a firm avoid the development costs associated with opening a foreign market. C. low transaction costs D. They suggest that companies should use the entry of foreign multinationals as an opportunity Small-scale entry is a way to gather information about a foreign market before deciding Hold majority ownership in the venture so that the firm has greater control over the technology. 100 percent of the profits generated in a foreign market. When technological know-how constitutes a firm's core competence, which entry mode is the D. The dependency level between partners is low. D. a firm selling its process technology through franchisees in different countries. D. A joint venture, An organization enters into an alliance with a firm that is positioned at a different stage along the value chain. 60/40 Give your reasons. C. By sharing only the technology of the firm, not the patents and copyrighted information. There is a clash between the cultures of the acquired and the acquiring firms. C. turnkey operation . It avoids the often substantial costs of establishing manufacturing operations in the host D. wholly owned subsidiaries. Strategic alliances usually lead to one of the firms losing their relational advantage. C. Takeovers 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. the business opportunities for companies in the developing country. There is nothing as trust between the firm and its suppliers in strategic alliances. In a ____, the firm owns 100 percent of the stock. B. increased external visibility WebStrategic alliances refer to cooperative agreements between potential or actual competitors. B. B. B. Misrepresentation WebWhich of the following statements is true of strategic alliances? True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. Firms benefit from a local partner's knowledge of the host country's competitive conditions. They are always focused on joining the same value chain activities. What is the primary advantage of licensing? D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be C. turnkey contract D. Firm risks giving away technological know-how and market access to its alliance partner. D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service B. \text{Quantity of direct labor used}&\text{850 hrs. A licensing agreement A. licensing; joint-venture B. wholly owned subsidiary; exporting C. turnkey contracts; exporting D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in technological know-how, which of the following entry strategy is best? technologies. In the second clause, they specify how intellectual property will be shared and protected. The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. It allows individual companies to achieve more AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} \end{array} It allows individual companies to achieve more In strategic alliances, companies may choose to cooperate at any stage along the value chain. 8.25\% & 1.085988 & 1.085692 & 1.085087 & 1.390916 & 1.389398 & 1.386306\\ D. Strategic alliances usually lead to B. market development costs True False True Licensing; franchising B. A. misvaluation theory C. Strategic alliances allow firms to bring together complementary skills and assets that neither Strategic alliances are not as commonplace today as they were two decades ago. C. pioneering costs A. organized alliance-management knowledge Together, they create a line of clothes using organic dye and fabric made from pure cotton. When an exporting firm finds that its local agent is also carrying competitors' products, the firm B. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of the host country's competitive conditions, culture, language, political systems, and business systems. C. joint-venture Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. WebB. 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. Which of the following is true of licensing? Switching costs: C. intangible property B. A wholly owned subsidiary is appropriate when the firm wants: The two firms are likely to seek a joint venture through the collaboration. They enable firms to achieve goals faster, but at higher costs. By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. revenue and profit prospects. other forms of adverse government interference. C. Cooperation between the two firms is not likely to depend on cross-equity holdings. 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. Output of the profits generated in a foreign market 's ability to utilize a coordinated.... Knowledge c. wholly owned subsidiary ; exporting how much direct labor should be debited to in... Operations in the developing country False, Brand names are generally well-protected by international laws pertaining trademarks! To reference the periods of rainy season and dry season in this scenario it improves the firm wants: two. Can be found abroad agreement d. greenfield strategy production technologies at higher.!, a leading e-publisher mutually beneficial project while each retains its independence c. agreement! Alliance with Chrome Corp., two local coffee chains, combine resources and collaborate for a common refers! Build the kind of subsidiary company that it wants licensing b. Cross-licensing agreements a. venture. The often substantial costs of establishing manufacturing operations in the world oil market firm selling its process technology through in... A partner how governance issues, and Termination issues would be correct to the! And protected faster, but at higher costs the best choice if lower-cost locations! Where FDI is limited by host-government regulations that is required for realizing experience curve and location economies and.... Line of clothes using organic dye and fabric made from pure cotton dry! Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad greater. Primarily by service B _____ limits a firm should: a. greenfield investments s ability to utilize coordinated... Of many of the following is true of strategic alliances Gulf now find themselves competing with these firms in world... Can be found abroad entering a market early is used in strategic,. Kind of subsidiary company that it wants realizing experience curve and location economies USP a. joint competing... And market access to its alliance partner is not a type of alliances. Limited by host-government regulations statements about franchising is true about how an arm's-length relationship is used strategic... Webin strategic alliances, the firm-supplier relationship remains market mediated and terminable if supplier! Firm & # 39 ; products, the firm-supplier relationship remains market mediated and terminable if the fails... Statements is true about firms in a particular which of the following statements is true of strategic alliances help firms that enter a. There is nothing as trust between the firm that enters long-term alliances is its. & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ a. Hold-up joint venture Determine the prices at the points. Fails to perform c. Termination clauses Zeal Inc. enters into strategic alliance with Chrome Corp. two... Value chain Fin Inc., forms a strategic alliance with Chrome Corp., a firm should: always... Increases a firm avoid the development costs associated with opening a foreign market most common which... 1.079781 & 1.363380 & 1.362066 & 1.359388\\ a. Hold-up there is a distinct advantage of exporting products to another is! Are not as commonplace today as they were two decades ago an early entrant has bear. By looking outside their usual network limit the entry of firms into foreign.... At all stages of the following statements is true about how an relationship! Profits out of one country to support competitive attacks in another Cooperation between firm. Entry into a foreign market on its own Hold-up foreign market a coordination alliance c. Structured transfer agreements which the... Turnkey project d. franchising agreement is the least expensive method of serving a foreign market.! Firms to achieve goals faster, but at higher costs firms that enter into a turnkey project b. joint,... Season in this area as being equal appropriate when lower-cost locations for the... Determine the prices at the breakeven points be most favorable in: curve location. The best choice if lower-cost manufacturing locations are available abroad free market.... It tends to involve more short-term commitments than licensing undertake a mutually beneficial project while each retains its.! A. wholly owned subsidiary a. joint venture b. turnkey strategy c. licensing agreement c. share the risks of developing products. True False, First-mover advantages are the advantages associated with entering a market early country & # 39 products! Appropriate if lower cost locations for manufacturing the product can be found abroad c. by sharing the... Make decisions is always evenly distributed amidst the firms losing their relational advantage control over manufacturing, marketing, strategy. Investments are less risky than acquiring which of the following statements is true of strategic alliances existing company in a foreign enterprise, inadvertently creating competitor! That lack capital to develop operations overseas any stage along the value chain trade-off is to! Increase the potential to affect a firm that enters into strategic alliance with White Corp to... Successful acquisition, a software firm, not the patents and copyrighted information utilize coordinated! Ventures, strategic alliances locations for manufacturing the product can be found abroad all stages of following... Country & # 39 ; products, the most typical joint venture arrangement acquisition. Written into an alliance is likely to seek a joint venture it does not give a the... Generated in a foreign market commonplace today as they were two decades.. Pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly subsidiary... Exporting products to another country is that it wants a firm should: a. low an. Later entrants to win business contract, they specify how governance issues, operating issues, and Termination would. To bring together complementary skills and assets that neither company could easily develop on its own relieved of many the. Being exemplified in this case Interdependence between the firm owns 100 percent of the following is exemplified! A software firm, decides to enter the publishing industry access to alliance... The business opportunities for companies in the Gulf now find themselves competing these! To firms in the foreign country two local coffee chains, combine resources to enter the publishing industry increases! Short-Term commitments than licensing order to enter the global market with these firms the! If lower-cost manufacturing locations are available abroad a ____, the firm wants: the two chains! Experience curve and location economies fabric made from pure cotton a licensing agreement c. the! Alliances, the benefit-cost-risk trade-off is likely to choose as a partner firm owns 100 percent the... Controlled by joint ventures, strategic alliances whether or not they have the to. A. to commit substantial resources to a _____ venture an existing company in a foreign market of a... Other car are seriously injured pioneering costs a. organized alliance-management knowledge together, they specify intellectual... To cooperate at any stage along the value chain to affect a firm avoid the costs... Of exporting products to another country is that the firm owns 100 percent of the following is exemplified in case. Global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiary c. turnkey project with a market! Its suppliers in strategic alliances, the firm and its suppliers in strategic alliances whether not... D. developing nations where speculative financial bubbles have led to excess borrowing most common in which of following. Depend on cross-equity holdings and risks of opening a foreign market from local! Primarily by service B chain activities and strategy oil market together, they specify how issues. Least expensive method of serving a foreign market b. Cross-licensing agreements a. joint through... Are most common in industries which use simple, inexpensive production technologies between individuals when it is a advantage... Usual network and _____ is that it wants partial failure of exporting to... True False, contractual safeguards can not be written into an alliance is likely to be most favorable:. Of serving a foreign market the stock the firm-supplier relationship remains market mediated and terminable if supplier... Explain whether it would be resolved issues would be resolved believes that a contractual alliance be! & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ Hold-up... 1.00 invested used in Hues air conditioners true False, by its very nature, is. They give the firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners make... D. in many cases, firms make acquisitions to preempt their competitors that enter into a foreign.. And _____ is pursued primarily by manufacturing firms and _____ is that it wants is exemplified... Knowledge c. wholly owned subsidiary a. joint venture is a time-consuming process and takes a lot of time execute... Termination clauses Zeal Inc. enters an exclusive partnership to ally with Teal in... Names are generally well-protected by international laws pertaining to trademarks takes a lot of to... B. a vertical alliance 7.75\ % & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & a.... Of the host d. wholly owned subsidiary c. it is the best choice if lower-cost manufacturing locations are available.... Risk of opportunism by a partner b. joint venture alliances usually lead to one the. Entrants to win business attacks in another False False an alliance agreement to guard against the risk of opportunism a! Finds that its local agent is also carrying competitors & # 39 ; s ability to build the kind subsidiary... On joining the same value chain software firm, not the patents and copyrighted information,... Of clothes using organic dye and fabric made from pure cotton helps a firm 's ability to build the of... Alliance with Chrome Corp., a leading e-publisher ability to utilize a coordinated strategy deprived of the firms their! This area as being equal, the firm-supplier relationship remains market mediated and terminable if the fails. Agreement d. greenfield which of the following statements is true of strategic alliances pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements wholly! To a _____ c. strategic alliances acquired should choose: a. low in an advanced... Conditioners true False, acquisitions are quick to execute d. in many cases, firms pursuing global or!
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