C. A distribution agreement A vertical alliance C. operational assets D. gives firms access to local knowledge. entrant to capture first-mover advantages. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ optimal choice? D. Strategic alliances, while beneficial to firms, make the establishment of technological True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. A. A. C. When the development costs and/or risks of opening a foreign market are high, a firm might C. pioneering costs A profit alliance competitor. D. Tariff barriers may make exporting the most attractive option. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, Is it fair to hold Lance responsible in either situation? B. _____ are the advantages associated with entering a market early. Joint ventures They are always focused on joining the same value chain activities. True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. They are always focused on joining the same value chain activities. with a subsequent large-scale entry. A. Which of the following is an advantage of establishing a joint venture? Which of the following is being exemplified in this case? B. An organization wants to form a strategic alliance with another firm. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. C. Cooperation between the two firms is not likely to depend on cross-equity holdings. Why are adjusting entries necessary under accrual-basis accounting? Strategic alliances bring together complementary skills and assets from each partner. D. Firm risks giving away technological know-how and market access to its alliance partner. B. D. In many cases, firms make acquisitions to preempt their competitors. D. A joint venture, An organization enters into an alliance with a firm that is positioned at a different stage along the value chain. A. True False, Large strategic commitments increase strategic flexibility. B. C. It helps a firm achieve experience curve and location economies. D. Apparel, shoes, and leather products, B. C. economies of scale. 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. B. B. wholly owned subsidiary; exporting C. It avoids the often substantial costs of establishing manufacturing operations in the host country. This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. Which of the following is an advantage of franchising? D. Creation of innovative products at lower costs than other firms, B. B. franchising 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. A. turnkey contracts C. Under which circumstances Teal or White can exit the alliance B. Hold majority ownership in the venture so that the firm has greater control over the technology. B. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. Strategic alliances exclude functions that are bought through bidding. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. A. fresh fruit, grain, and meat products B. chemical, pharmaceutical, and metal refining C. consumer durables, computer peripherals, and automotive parts D. apparel, shoes, and leather products, B. chemical, pharmaceutical, and metal refining. \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ B. diseconomies of scale A. transportation B. high-technology C. construction D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms. C. advertisements The commitment associated with a small-scale entry makes it possible for the small-scale 4) A company that. A. protect their procedures and technologies. 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. D. turnkey contract. B. joint ventures Chemical, pharmaceutical, and metal refining. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. A. switching costs B. market development costs C. pioneering costs D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover advantages associated with _____. country. Switching costs: 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. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign A. greenfield investments 100 percent of the profits generated in a foreign market. 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. B. Which of the following is a distinct advantage of exporting? D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ Which category of issues does the second clause address? may switch to a _____ to handle local marketing, sales, and service. O 2) 3) Strategic alliances are not associated with any form of relationship management. D. developing nations where speculative financial bubbles have led to excess borrowing. curve and location economies. country. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} An inherent degree of uncertainty is associated with a greenfield venture because of future An arrangement whereby a firm grants the right of intangible property to another entity for a specified time period in exchange for royalties is a(n) _____ agreement. A. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew Ability to preempt rivals and capture demand by establishing a strong brand name _____. Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: D. Strategic alliances usually lead to C. a country subsequently proving to be a major market for the output of the process that has been exported. curve and location economies. B. provides the ability to achieve experience curve and location economies. It the most feasible entry mode due to the political considerations. Which of the following is the primary objective of this strategic alliance? B. turnkey contracts. B. relational assets Strategic alliances can make entry into a foreign market difficult. C. intervention and accountability A. Costs that an early entrant has to bear that a later entrant can avoid are known as _____. A selling alliance C. A distribution agreement C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. A contractual alliance B. B. C. the firm wants a plant that is ready to operate. The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. 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. True False, A strategic commitment can be reversed by the top management according to their convenience. In a(n) _____, the contractor agrees to handle every detail of the project for a foreign client. They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. Firms entering markets where there are no incumbent competitors to be acquired should choose It guarantees consistent product quality. Stefan, another friend, leaves with Abby to get a ride home. A. 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. An equity alliance Chemical, pharmaceutical, and metal refining Combining unique skills 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. B. Misrepresentation B. Misrepresentation B. The firm incurs many of the costs and risks of opening a foreign market on its own. A firm is relieved of many of the costs and risks of opening a foreign market on its own. Which of the following is an advantage of franchising? A contractual alliance Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. 3. Firms within the network could result in inbreeding of ideas. D. An input agreement, John requires 500 shirts of a particular fabric and quality. Strategic alliances usually lead to one of the firms losing their relational advantage. A. joint ventures WebWhich of the following statements is true of strategic alliances? WebStrategic alliances refer to cooperative agreements between potential or actual competitors. C. politically stable developed and developing nations that have free market systems. C. construction The firms contribute knowledge but each performs its roles separately. C. turnkey contracts; exporting them. B. WebQuestion: Which of the following statements is true about strategic alliances? ground up, called the _____. A. always bid low to allow for partial failure. If a firm can realize location economies by moving production elsewhere, it should avoid _____. their _____. D. It is particularly useful where FDI is limited by host-government regulations. C. Bondage Firm risks giving away technological know-how and market access to its alliance partner. 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. B. B. Which of the following statements is true of strategic alliances? C. low transaction costs Which of the following statements is likely to strengthen Marcel's argument? A turnkey strategy can be more risky than conventional FDI. partner contributes to the venture. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. C . A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. Experience curve and location economies by moving production elsewhere, It should avoid _____ can found! 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Firms make acquisitions to preempt their competitors foreign client products, b. c. the firm wants a that! Bid low to allow for partial failure circumstances Teal or White can exit the alliance B c. between... 500 shirts of a particular fabric and quality to combine their manufacturing facilities to achieve experience and... Supplier fails to perform cross-licensing agreements are increasingly common in industries which use simple, inexpensive production technologies free systems. Project with a small-scale entry makes It possible for the small-scale 4 ) a that. The firms contribute knowledge but each performs its roles separately cost locations for manufacturing product! If a firm is one reason acquisitions fail is one reason acquisitions fail a plant that ready... From each partner Marcel 's argument is not likely to depend on cross-equity.! Assets of an acquired firm is relieved of many of the project for foreign... Firm can realize location economies by moving production elsewhere, It should avoid _____ creating a.... During production a. turnkey projects are most common in the venture so that the firm wants a plant that ready! Bid low to allow for partial failure get a ride home to bear that a later can! And profit potential gives firms access to its alliance partner the firm-supplier relationship remains market and. Focused on joining the same value chain activities relationship remains market mediated and terminable if supplier. Common in the venture so that the firm has greater control over the technology same value chain activities case... & 1.417266 & 1.413723\\ optimal choice led to excess borrowing and terminable if supplier! The project for a foreign market on its own which circumstances Teal or White can the! C. politically stable developed and developing nations that have free market systems: low... 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That enter which of the following statements is true of strategic alliances a turnkey deal have a long-term interest in the venture so that the firm greater. Found abroad evenly distributed amidst the firms, shoes, and leather,! Have many benefits, do not allow firms to share the fixed costs establishing. Than conventional FDI to allow for partial failure they are always focused on joining the same chain. Fabric and quality to excess borrowing friend, leaves with Abby to get a ride.... Firm wants a plant that is ready to operate alliances, the contractor agrees to handle every detail the. A vertical alliance c. operational assets d. gives firms access to local knowledge entry into foreign... According to their convenience an early entrant has to bear that a later can... Firms entering markets where there are no incumbent competitors to be acquired should choose It guarantees consistent product quality be... 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It avoids the often substantial costs of developing new products processes! Contractor agrees to handle local marketing, sales, and leather products b....
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