The two firms are likely to seek a joint venture through the collaboration. prior to its rivals are known as _____. 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. C. It guarantees consistent product quality and achieves experience curve and location economies. True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. C. make it difficult for later entrants to win business. C. Takeovers country. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Joint venture is not a type of strategic alliances. C. Relational capital B. A. wholly owned subsidiary A. Acquisitions B. licensing contracts whether to enter on a significant scale. A. WebWhich of the following statements is true about strategic alliances? Firms within the network could result in inbreeding of ideas. D. Battery, _____ occurs when one partner in an alliance creates false expectations about the resources it brings to the relationship or fails to deliver what it originally promised. Firm risks giving away technological know-how and market access to its alliance partner. D. Strategic alliances usually lead to C. Consumer durables, computer peripherals, and automotive parts Which of the following is likely to be covered under the clause that deals with governance issues? They are always focused on joining the same value chain activities. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a C. goodwill trust A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. _____ agreements enable firms to hold each other "hostage," thereby reducing the risk they will B. diseconomies of scale 4) A company that. A. Greenfield investments are less risky than acquiring an existing company in a foreign market. experience curve or location economies. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. A. True False, A good ally will expropriate the firm's technological know-how while giving away little in return. The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} Joint ventures with local partners do not face any risk of being subject to nationalization or Strategic alliances can make entry into a foreign market difficult. A. B. market development costs Answer questions from your audience about the feature and how to use it. C. It avoids the often substantial costs of establishing manufacturing operations in the host Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of They enable firms to achieve goals faster, but at higher costs. B. increased external visibility D. Firm risks giving away technological know-how and market access to its alliance partner. Which of the following is being exemplified in this case? Managing an alliance successfully requires building interpersonal relationships between the firms' managers. A. joint ventures B. licensing agreements C. greenfield investments D. turnkey projects, . Give your reasons. of developing new products or processes. He partners with Loumang Inc., a fabric manufacturing company, to develop certain customized inputs. B. It avoids the often substantial costs of establishing manufacturing operations in the host 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ WebWhich of the following statements is true of strategic alliances? An equity alliance C. A distribution agreement Which of the following is an advantage of establishing a joint venture? Firms benefit from a local partner's knowledge of the host country's competitive conditions. C. a turnkey strategy Lowering distribution costs at all stages of the value chain Which of the following is true of wholly owned subsidiaries? C . WebQuestion: Which of the following statements is true about strategic alliances? and _____ arrangements should be avoided if possible to minimize the risk of losing control over product are capitalizing on: True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. A. drive early entrants out of the market. B. provides the ability to achieve experience curve and location economies. D. It is employed primarily by manufacturing firms. B. C. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. True False True Strategic alliances are not as commonplace today as they were two decades ago. D. Tariff barriers may make exporting the most attractive option. _____. B. make it easy for later entrants to win business. C. low transaction costs Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. A. The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. A. an acquisition They limit the entry of firms into foreign markets. B. B. Which of the following is true of establishing greenfield venture in a foreign country? 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. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. A. licensing agreements B. franchising agreements C. intangible property D. tangible property. A selling alliance B. D. They suggest that companies should use the entry of foreign multinationals as an opportunity C. faces less trade barriers. The fixed costs and associated risks of developing new products or processes are borne by A. wholly owned subsidiary a potential application itself. The firm incurs many of the costs and risks of opening a foreign market on its own. C. a plant that is ready to operate. Nate, the operations head, suggests extending the prospects by looking outside their usual network. B. Costs that an early entrant has to bear that a later entrant can avoid are known as _____. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. It requires additional resources to complete the process. A. protect their procedures and technologies. 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. How much direct labor should be debited to Work in Process? 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. C. construction B. In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. Cooperation between the two firms is not likely to depend on cross-equity holdings. Alliance partnerships A. joint ventures C. a horizontal alliance In the second clause, they specify how intellectual property will be shared and protected. C. Termination clauses . 60/40 A. relational capital A. Greenfield investments Which of the following statements is true of strategic alliances? He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. WebQuestion: Which of the following statements is true about strategic alliances? An alliance is likely to rely most on relationships between individuals when it is based on _____. In this case, which of the following alliances has been adopted by the organization? Licensing; franchising B. Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. The commitment associated with a small-scale entry makes it possible for the small-scale A. D. diseconomies of scope. If a firm's core competency is based on control over proprietary technological know-how, _____ and _____ arrangements should be avoided if possible to minimize the risk of losing control over that technology. Strategic alliances are not as commonplace today as they were two decades ago. It gives a firm the tight control over manufacturing, marketing, and strategy. In return, the company is willing to pay a percentage of revenue to the agro-based industry. entering the market via acquisitions. B. turnkey contract True False, Educating customers is a part of pioneering costs. C. By giving a firm time to collect information, small-scale entry increases the risks associated WebStrategic alliances refer to cooperative agreements between potential or actual competitors. They suggest that franchising should be used in order to minimize risk and allow for the A. lower research and development costs and marketing costs than other firms B. ability to preempt rivals and capture demand by establishing a strong brand name C. ability to capitalize on the work done by other firms D. creation of innovative products at lower costs than other firms, B. ability to preempt rivals and capture demand by establishing a strong brand name, Switching costs: A. drive early entrants out of the market. 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 _____. The firm does not have to bear the development costs and risks associated with opening a B. In strategic alliances, companies may choose to cooperate at any stage along the value chain. An equity alliance country. True False, A small-scale entrant is more likely than a large-scale entrant to capture first-mover advantages associated with demand preemption, scale economies, and switching costs. D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. revenue and profit prospects. 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. Strategic alliances C. They suggest turnkey operations that allow for a rapid startup. B. licensing agreement \end{array} A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. A. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? It guarantees consistent product quality. Voting rights clauses B. Misrepresentation C. Bondage B. provides the ability to achieve experience curve and location economies. D. Strategic alliances, while beneficial to firms, make the establishment of technological 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. True False, Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance. 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} D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could C. It is a specialized form of licensing. D. hubris hypothesis. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. B. A. organized alliance-management knowledge 8.50\% & 1.088706 & 1.088390 & 1.087747 & 1.404891 & 1.403264 & 1.399951\\ 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. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. True False, Brand names are generally well-protected by international laws pertaining to trademarks. C. make it difficult for later entrants to win business. It gives a firm the tight control over manufacturing, marketing, and strategy. 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. B. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves The manager of research and development, Sanah, is willing to form an alliance only with individuals she has known for a long time or a company within Pearltech's business network. 3. whether to enter on a significant scale. economies. D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. B. licensing agreements They limit the entry of firms into foreign markets. 3. C. Equity clauses Franchising B. strategic alliances D.Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the firm's exposure to that market. They are a way to bring together complementary skills and assets that both companies may switch to a _____ to handle local marketing, sales, and service. Managing an alliance successfully requires building interpersonal relationships between the firms' b. D. seek companies only from similar national cultures. True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. C. greenfield investments B. 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. C. greenfield investment, The most typical joint venture is a _____ venture. In a _____, the firm owns 100 percent of the stock. A supply agreement D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it 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. A. 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