which of the following statements is true of strategic alliances
C. They limit the entry of firms into foreign markets. B. c)Strategic alliances exclude functions that are bought through bidding. 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. Which of the following is being exemplified in this case? A. licensing contract A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. A. organized alliance-management knowledge D. The firm has to bear the development costs and risks associated with opening a foreign market. 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ B. B. Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. B. They form an alliance to benefit from complementary activities. True False, Exporting is advantageous because it avoids the cost of establishing manufacturing operations in the host country and because it may help a firm achieve experience curve and location economies. A. wholly owned subsidiary WebStrategic alliances refer to cooperative agreements between potential or actual competitors. A. The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. C. share the risks of developing new products or processes. Together, they create a line of clothes using organic dye and fabric made from pure cotton. Voting rights clauses WebWhich of the following is true of strategic alliances? A licensing agreement Alliance partnerships 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. product are capitalizing on: A. An advantage of exporting products to another country is that it: It does not help firms that lack capital to develop operations overseas. A. Modularization B. The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. C. Bondage A. joint ventures B. licensing C. wholly owned subsidiaries D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is their _____. B. It allows individual companies to achieve more D. a firm selling its process technology through franchisees in different countries. A . C. Termination clauses A. alliance _____. C. intervention and accountability B. reduce the level of conflicts that occur within an organization. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. A strategic alliance is an agreement between two businesses to work together on a project that will benefit both parties while maintaining their individual freedom. optimal? D. Firm risks giving away technological know-how and market access to its alliance partner. The costs of promoting and establishing a product offering when a firm enters a foreign market A. legal contracts SeaShade produces beach umbrellas. license some of its valuable know-how to the firm. B. A. C. greenfield investment, The most typical joint venture is a _____ venture. A. joint venture A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. D. gives firms access to local knowledge. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. Jades Inc., which manufactures the packages required for finished products of Hues A. Turnkey D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . In a(n) _____, the contractor agrees to handle every detail of the project for a foreign client. C. pioneering costs D. It increases a firm's ability to utilize a coordinated strategy. Redwood Inc., has an arm's-length relationship with Blue Ink Corp. 4) A company that. A. A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? D. reputation, J.L. Switching costs: D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a D. New partners bring in unique skills that add value to the product. Which of the following statements is true of turnkey projects? Which of the following statements is likely to be true in this case? 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. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. been exported. 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. B. C. It helps a firm achieve experience curve and location economies. D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. However, Stylink tried to exploit the alliance-specific investments made by Plateus. D. late-mover advantages. B. the firm wants 100 percent of the profits generated in a foreign market. A. Hold-up a potential application itself. The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. A. Preemption rights clauses A. acquisition. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew \text{Actual rate for direct labor}&\text{\$15.60 per hr. A. A. D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of A. Which of the following is true of acquisitions? A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up, called the _____. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. 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. B. Which of the following clauses specifies the above conditions? D. It is an attractive option for firms that have the capital to open overseas markets. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. 4) A company that. True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. A. organized alliance-management knowledge B. strategic alliances C. joint-venture C. market timing theory optimal choice? In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. In a ____, the firm owns 100 percent of the stock. Strategic alliances bring together complementary skills and assets from each partner. Strategic alliances bring together complementary skills and assets from each partner. C. A. Greenfield investments B. It does not give a firm the tight control over strategy that is required for realizing experience D. It is employed primarily by manufacturing firms. C. joint venture According to the _____, top managers typically overestimate their ability to create value from an A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. C. A vertical alliance D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service D. shared ownership, _____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. Which of the following is being exemplified in this scenario? D. Strategic alliances usually lead to D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. A. a joint venture 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. D. seek companies only from similar national cultures. B. True False, . In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. It tends to involve more short-term commitments than licensing. D. B. Firms within the network prevent against opportunism. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign D. turnkey contract. Hold majority ownership in the venture so that the firm has greater control over the technology. D. Despite adequate pre-acquisition screening, the entities encounter unexpected governmental B. A. 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. It cannot be used when a firm possesses some intangible property that might have business applications. A firm takes profits out of one country to support competitive attacks in another. A. Which of the following statements is true about firms in a joint venture? A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. C. It avoids the often substantial costs of establishing manufacturing operations in the host standards for an industry difficult. 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. C. politically stable developed and developing nations that have free market systems. B. D. wholly owned subsidiaries. B. There is little incentive for the franchisee to build a profitable operation as quickly as possible. In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. Hold-up Prepare a written outline of the points of your presentation. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of C. Under which circumstances Teal or White can exit the alliance The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. 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. A firm is relieved of many of the costs and risks of opening a foreign market on its own. 4. Which of the following is being exemplified in this case? D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in A. top management staff None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner 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. B. joint ventures. B. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. Which of the following statements strengthens Sanah's argument? Firms entering markets where there are no incumbent competitors to be acquired should choose C. Wholly owned subsidiaries A. Which of the following is a disadvantage of licensing? A. B. licensing agreements B. make it easy for later entrants to win business. It helps a firm avoid the development costs associated with opening a foreign market. C. A distribution agreement B. A. turnkey project B. joint venture C. greenfield investment D. licensing arrangement, The most typical joint venture is a _____ venture. D. Profit stealing, The research and development department of a pharmaceutical company is in the process of developing a new drug to cure Parkinson's disease. B. 2. In this case, which of the following contractual alliances should be adopted by Sepia? them. . A. Hold-up An advantage of _____ with a local partner is the knowledge of the local environment that the local The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} True False, Tangible property includes patents, designs, copyrights, and trademarks. 2003-2023 Chegg Inc. All rights reserved. A. firm's exposure to that market. A. turnkey Strategic alliances can make entry into a foreign market difficult. of developing new products or processes. A. with a subsequent large-scale entry. Acquisitions Revenues, expenses, and profits are equally shared by both firms. Through this measure, Plateus seeks to primarily achieve _____. True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. B. joint venture C. A distribution agreement 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. Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. Which of the following is likely to be covered under the clause that deals with governance issues? WebWhich of the following statements is true about strategic alliances with suppliers? A. switching costs C. make it difficult for later entrants to win business. them. A. Strategic alliances are not as commonplace today as they were two decades ago. \end{array} Strategic alliances are not as commonplace today as they were two decades ago. Licensing agreements Which of the following is true of establishing greenfield venture in a foreign country? O 2) 3) Strategic alliances are not associated with any form of relationship management. A. D. It increases a firm's ability to utilize a coordinated strategy. They are less risky than greenfield ventures in the sense that there is less potential for competitor. The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. C. B. A. They are a way to bring together complementary skills and assets that both companies develop. B. In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. Hold-up It avoids the often substantial costs of establishing manufacturing operations in the host A vertical alliance Which category of issues does the second clause address? 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. 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ B. competitor. He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. A. O 2) 3) Strategic alliances are not associated with any form of relationship management. A. exporting D. Foreign franchises controlled by joint ventures, D. Foreign franchises controlled by joint ventures. partner, but in addition to a royalty payment, the firm might also request that the foreign partner Strategic alliances can make entry into a foreign market difficult. whether to enter on a significant scale. d)In strategic. easily develop on its own. Joint venture is not a type of strategic alliances. C. a horizontal alliance A. misvaluation theory D. In many cases, firms make acquisitions to preempt their competitors. C. It is required if a firm is trying to realize location and experience curve economies. D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the WebWhich of the following is true of strategic alliances? firms. A. A. Managing an alliance successfully requires building interpersonal relationships between the firms' B. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? C. low transaction costs Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? Which of the following is true of strategic alliances? B. Joint management D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. As Abby pulls her car onto the highway, she swerves and hits another car head-on. C. A distribution agreement WebWhich of the following statements is true about strategic alliances? WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. WebWhich of the following statements is true of strategic alliances? B. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, What is the primary advantage of licensing? They are always focused on joining the same value chain activities. A. relational capital 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. Residual rights clauses C. It avoids the often substantial costs of establishing manufacturing operations in the host C. licensing agreement A. Which of the following is true of licensing? True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. C. turnkey project Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. 2. D. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. experience curve or location economies. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. However, they do not have a supplier-buyer relationship. 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