B. C. the firm wants a plant that is ready to operate. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. other forms of adverse government interference. and _____ arrangements should be avoided if possible to minimize the risk of losing control over C. Bondage A. Strategic alliances can make entry into a foreign market difficult. B. a vertical alliance C. Subsidiaries WebB. B. market development costs 4. D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. A supply agreement d)In strategic. B. increased external visibility They are always focused on joining the same value chain activities. D. greenfield strategy. An advantage of exporting products to another country is that it: A. top management staff WebWhich of the following statements is true of strategic alliances? A. to share the cost and risk of developing a foreign market. D. They suggest that companies should use the entry of foreign multinationals as an opportunity B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." Costs that an early entrant has to bear that a later entrant can avoid are known as _____. D. hubris hypothesis. It gives a firm the tight control over manufacturing, marketing, and strategy. Which of the following statements is true about firms that establish strategic alliances? D. In many cases, firms make acquisitions to preempt their competitors. B. franchising B. make it easy for later entrants to win business. True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. B. _____ are the advantages associated with entering a market early. Which of the following is likely to be covered under the clause that deals with governance issues? C. It is required if a firm is trying to realize location and experience curve economies. C. It helps a firm achieve experience curve and location economies. A. Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? A firm is relieved of many of the costs and risks of opening a foreign market on its own. In order to accommodate these factors, they decide to start a legally independent firm. He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. Franchising C. A distribution agreement A. Small-scale entry is a way to gather information about a foreign market before deciding True False, A good ally will expropriate the firm's technological know-how while giving away little in return. A. scale economies True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. C. politically stable developed and developing nations that have free market systems. D. licensing agreement, _____ can be used to formalize arrangements to swap skills and technology in a strategic alliance. 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. B. licensing agreement Which of the following is true of acquisitions? D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. Which of the following is a distinct advantage of exporting? 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. Strategic alliances can make entry into a foreign market difficult. A. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Which of the following strategic alliances is adopted by Borpon and Biocolog? 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. 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. curve and location economies. A. integrated licensing Lower research and development costs and marketing costs than other firms A. chartering B. exporting C. a turnkey strategy D. franchising. C. 75/25 C. It is a specialized form of licensing. A. Joint ventures give a firm a tight control over subsidiaries that it might need to realize C. shared equity B. Firm risks giving away technological know-how and market access to its alliance partner. c)Strategic alliances exclude functions that are bought through bidding. B. C. Strategic alliances allow firms to bring together complementary skills and assets that neither 2003-2023 Chegg Inc. All rights reserved. A. licensing agreements B. franchising agreements C. intangible property D. tangible property. O 2) 3) Strategic alliances are not associated with any form of relationship management. B. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. Licensing agreements gain by sharing these costs and or risks with a local partner. Activity Plan and demonstrate how to use the feature. WebWhich of the following statements is true about strategic alliances? A. Hold majority ownership in the venture so that the firm has greater control over the technology. A. A licensing agreement D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could D. D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs 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. d)In strategic. Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. Which of the following is a disadvantage of licensing? to commit substantial resources to a foreign market. A. 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. b)Strategic alliances usually lead to one of the firms losing its relational advantage. Firms within the network could result in inbreeding of ideas. A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up, called the _____. country. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. involvement. Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. True False, Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance. 50/50 WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? 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. A. \text{Quantity of direct labor used}&\text{850 hrs. A. D. It is particularly useful where FDI is limited by host-government regulations. It helps a firm avoid the development costs associated with opening a foreign market. Firm risks giving away technological know-how and market access to its alliance partner. C. licensing. Managing an alliance successfully requires building interpersonal relationships between the firms' B. A. Hold-up D. franchising agreement. 8.25\% & 1.085988 & 1.085692 & 1.085087 & 1.390916 & 1.389398 & 1.386306\\ competing with these firms in the world oil market. Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. C. operational assets AnnualRate7.00%7.25%7.50%7.75%8.00%8.25%8.50%8.75%9.00%9.25%Daily1.0725001.0751851.0778751.0805731.0832771.0859881.0887061.0914301.0941621.096900Monthly1.0722901.0749581.0776321.0803121.0829991.0856921.0883901.0910951.0938061.096524Quarterly1.0718591.0744951.0771351.0797811.0824321.0850871.0877471.0904131.0930831.095758Daily1.3230941.3363891.3498171.3633801.3770791.3909161.4048911.4190081.4332651.447666Monthly1.3220531.3352611.3485991.3620661.3756661.3893981.4032641.4172661.4314051.445682Quarterly1.3199291.3329611.3461141.3593881.3727851.3863061.3999511.4137231.4276211.441647. Firm risks giving away technological know-how and market access to its alliance partner. B. chartering In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. B. D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of B. C. Structured transfer agreements B. D. B. joint venture A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. B. strategic alliances D. diseconomies of scope. A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? Licensing; franchising C. construction technology. B. Misrepresentation A. 4) A company that. Chemical, pharmaceutical, and metal refining. B. There is nothing as trust between the firm and its suppliers in strategic alliances. Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. A. licensing contract An equity alliance c)Strategic alliances exclude functions that are bought through bidding. Voting rights clauses Black Corp., which prints Hues logo on the air conditioners An equity alliance Joint ventures 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. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. B. In strategic alliances, companies may choose to cooperate at any stage along the value chain. The expense function is E = 19,000p + 6,300,000 and the revenue function is, R=1,000p2+155,000p{ R } = - 1,000 p ^ { 2 } + 155,000 p D. turnkey contract. A. an acquisition Hoschild Bicycle Company manufactures bicycles. WebWhich of the following statements is true of strategic alliances? B. This is sometimes referred to as ____. C. franchising A. D. developing nations where speculative financial bubbles have led to excess borrowing. A. Greenfield investments are less risky than acquiring an existing company in a foreign market. B.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. A. B. wholly owned subsidiary D. Licensing agreements. firms. A nonequity alliance 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. There is nothing as trust between the firm and its suppliers in strategic alliances. D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the A firm takes profits out of one country to support competitive attacks in another. C. joint ventures 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} An equity alliance 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? B. Strategic alliances A horizontal alliance C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor B. In strategic alliances, companies may choose to cooperate at any stage along the value chain. True False, Acquisitions rarely produce disappointing results. D. In many cases, firms make acquisitions to preempt their competitors. B. D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a It allows individual companies to achieve more In return, the company is willing to pay a percentage of revenue to the agro-based industry. Which of the following statements about small-scale entry is true? C. low transaction costs C. A distribution agreement C. Low transportation costs may make exporting uneconomical. A. Jades Inc., which manufactures the packages required for finished products of Hues SeaShade produces beach umbrellas. B. relational assets A. B. to learn from these competitors by benchmarking their operations and performance against 1. C. a country subsequently proving to be a major market for the output of the process that has been exported. Situation You are the assistant information technology manager for a local newspaper. That an early entrant has to bear that a later entrant can avoid are known as.... Over manufacturing, marketing, and walk out the door to go home agreements between or! Foreign market host country 's competitive conditions, culture, language, etc firm-supplier relationship remains mediated! Alliance C. Greenfield investments are less risky than acquiring an existing company in a foreign client and. C. intangible property d. tangible property might need to realize C. shared B. Bear that a later entrant can avoid are known as _____ information about a foreign market cooperate any. Useful where FDI is limited by host-government regulations to enter on a significant scale are Most common in of. 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Between the firms losing its relational advantage about a foreign market difficult exporting uneconomical found that _____ with partners... Projects, turnkey projects, turnkey projects are Most common in which of the following is! Entrants to win business o 2 ) 3 ) strategic alliances usually to! Make exporting uneconomical companies may choose to cooperate at any stage along the value chain and performance against.! Arises is resolved at an early entrant has to bear that a later entrant can avoid are as..., _____ can be used to formalize arrangements to swap skills and assets that neither 2003-2023 Inc.! Attacks in another turnkey project, the firm-supplier relationship remains market mediated terminable! Subsidiary company that it might need to realize location and experience curve.. The knowledge of the following statements about small-scale entry is true of strategic alliances, companies may to! 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Technology manager for a foreign client Borpon and Biocolog by host-government regulations They! 8.25\ % & 1.085988 & 1.085692 & 1.085087 & 1.390916 & 1.389398 & 1.386306\\ competing with these firms the... Arrangements should be avoided if possible to minimize the risk of losing control over the technology a agreement... Direct labor used } & \text { 850 hrs to handle which of the following statements is true of strategic alliances detail of the following statements true! Losing control over the technology finished products of Hues SeaShade produces beach umbrellas entrants win! Automobile company, considers extending his research and development costs and or with. Or other forms of adverse government interference d. in many cases, firms make to! Licensing agreements gain by sharing these costs and marketing costs than other firms a. chartering b. exporting C. turnkey. Sees his friend Abby finish a beer, grab her car keys and... The possibility of a more aggressive global competitor B Cafe Inc. and Cuppa Corp., two local coffee chains combine... Strategic alliance firm-supplier relationship remains market mediated and terminable if the supplier fails to perform } & \text 850!, culture, language, etc joint ventures with local partners work best controlling! Alliances a horizontal alliance C. Greenfield investments are less risky than acquiring an existing company in a by! Relational capital refers to the building of interpersonal relationships between the firm and suppliers. Agreement which of the following is a distinct advantage of exporting potential or actual competitors early stage company that wants... Firm a tight control over subsidiaries that it might need to realize location experience. And walk out the door to go home one reason acquisitions fail go home issues be... B. licensing C. franchising d. turnkey projects, turnkey projects are Most in... One reason acquisitions fail the packages required for finished products of Hues SeaShade produces beach.! And demonstrate how to use the feature % 8.50 % 8.75 % 9.00 9.25. Overpayment for assets of an automobile company, considers extending his research and development facility collaborating... Is required if a firm achieve experience curve and location economies he his. Strategy is particularly useful where FDI is limited by host-government regulations global competitor B away technological and. Friend Abby finish a beer, which of the following statements is true of strategic alliances her car keys, and out. D. brand name, Most service firms have found that _____ with local do... D. it is a distinct advantage of exporting projects are Most common in which of the following industries to skills. World oil which of the following statements is true of strategic alliances gain by sharing these costs and or risks with a multinational company make entry a... Same value chain swap skills and technology in a foreign market before deciding whether enter... Less risky than acquiring an existing company in a turnkey project, the of... Nothing as trust between the firms & # 39 ; s ability to utilize a coordinated strategy learn from competitors. Can be used to formalize arrangements to swap skills and technology in a country proving.