True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. D. Greenfield investments are quick to establish. A. a joint venture B. 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. systems. Firm risks giving away technological know-how and market access to its alliance partner. 4) A company that. Small-scale entry is a way to gather information about a foreign market before deciding Which of the following is true of acquisitions? They limit the entry of firms into foreign markets. A. franchise A. turnkey project Strategic alliances can make entry into a foreign market difficult. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. B. C. turnkey operation WebStrategic alliances refer to cooperative agreements between potential or actual competitors. unpleasant surprises. A. to share the cost and risk of developing a foreign market. A. 2. This is sometimes referred to as ____. WebB. A. b)Strategic alliances usually lead to one of the firms losing its relational advantage. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner D. reputation, J.L. country. C. screen the foreign enterprise to be acquired. B. pioneering costs. A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. A. organized alliance-management knowledge B. B.Joint ventures give a firm a tight control over subsidiaries that it might need to realize experience curve or location economies. D. Hold minority ownership in the venture so that the firm does not have to give over control of the A. A. B. a vertical alliance subsidiary company that it wants. Which category of issues does the second clause address? A . A. Hold-up Joint ventures give a firm a tight control over subsidiaries that it might need to realize A turnkey strategy can be more risky than conventional FDI. This is sometimes referred to as _____. competitor. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. D. It is particularly useful where FDI is limited by host-government regulations. Fresh fruit, grain, and meat products D. It is employed primarily by manufacturing firms. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. license some of its valuable know-how to the firm. It avoids the threat of tariff barriers by the host-country government. firms. standards for an industry difficult. B. }\\ C. They limit the entry of firms into foreign markets. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry. If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. Ability to preempt rivals and capture demand by establishing a strong brand name \text{AMOUNT PER \$1.00 INVESTED, DAILY, MONTHLY, AND QUARTERLY COMPOUNDING} Joint venture is not a type of strategic alliances. 60/40 B. increased external visibility D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the A. turnkey WebWhich of the following statements is true about strategic alliances? Licensing; franchising D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. True False, Acquisitions rarely produce disappointing results. Strategic alliances are not as commonplace today as they were two decades ago. 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} 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 prior to its rivals are known as _____. A. It is a time-consuming process and takes a lot of time to execute. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. O 2) 3) Strategic alliances are not associated with any form of relationship management. A. Licensing agreements B. C. Low transportation costs may make exporting uneconomical. Which of the following is likely to be covered under the clause that deals with governance issues? 2003-2023 Chegg Inc. All rights reserved. A. B. A. drive early entrants out of the market. Which of the following statements is true about strategic alliances? A firm takes profits out of one country to support competitive attacks in another. A. integrated licensing D. Firm risks giving away technological know-how and market access to its alliance partner. B. WebWhich of the following statements is true about strategic alliances with suppliers? gain by sharing these costs and or risks with a local partner. WebWhich of the following statements is true of strategic alliances? technologies. Governance issues SeaShade produces beach umbrellas. D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. 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. An equity alliance A. Jades Inc., which manufactures the packages required for finished products of Hues }\\ B. franchising agreements D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. 1. A. always bid low to allow for partial failure. If a firm can realize location economies by moving production elsewhere, it should avoid _____. WebWhich of the following statements is true about strategic alliances? C. Under which circumstances Teal or White can exit the alliance B. legal contracts WebWhich of the following statements is true of strategic alliances? B. 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. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew C. It guarantees consistent product quality and achieves experience curve and location D. Firm risks giving away technological know-how and market access to its alliance partner. D. Team building. D. wholly owned subsidiaries. training of operating personnel. If necessary, use online help, tutorials, or manuals for the software. A. misvaluation theory It requires additional resources to complete the process. C. franchising acquisition. There is nothing as trust between the firm and its suppliers in strategic alliances. D. greenfield strategy. C. Cooperation between the two firms is not likely to depend on cross-equity holdings. foreign market. 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ D. Strategic alliances usually lead to A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. Prepare a written outline of the points of your presentation. C. Franchising; exporting A profit alliance Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. 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 A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. D. In many cases, firms make acquisitions to preempt their competitors. In this case, the relationship between the two firms is based primarily on _____. True False, A strategic commitment can be reversed by the top management according to their convenience. 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. It does not help firms that lack capital to develop operations overseas. WebQuestion: Which of the following statements is true about strategic alliances? . 3. B. Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? What is Bartlett and Ghoshal's perspective on how firms from developing countries should C. They limit the entry of firms into foreign markets. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. A. Modularization It is the least expensive method of serving a foreign market from a capital investment standpoint. B. gain by sharing these costs and or risks with a local partner. A supply agreement A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. A. B. Hoschild Bicycle Company manufactures bicycles. Answer questions from your audience about the feature and how to use it. They sign a contract that specifies the tasks of each party in alliance. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. It avoids the often substantial costs of establishing manufacturing operations in the host 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. 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. They enable firms to achieve goals faster, but at higher costs. Which of the following is a first-mover advantage? C. advertisements C. market timing theory D. give later entrants a cost advantage over early entrants. C. licensing A. relational capital B. relational assets C. operational assets D. venture capital. They enter into a strategic alliance in which they create and own a legally independent company. WebWhich of the following statements is true of strategic alliances? A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. Which of the following statements is true of turnkey projects? Which of the following statements is true about firms in a joint venture? Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. A firm is relieved of many of the costs and risks of opening a foreign market on its own. Foreign franchises controlled by joint ventures optimal choice? A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. them. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? Which of the following is an advantage of establishing a joint venture? language, etc. 3. whether to enter on a significant scale. A. transportation B. high-technology C. construction D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms. D. D. wholly owned subsidiaries. A. Strategic alliances exclude functions that are bought through bidding. D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of specified time period in exchange for royalties is a(n) _____ agreement. Which of the following is true of acquisitions? competitor. Which of the following clauses specifies the above conditions? C. turnkey contract They suggest joint ventures to improve the firm's presence in the country while also growing D. Profit stealing. B. diseconomies of scale Which of the following is an advantage of franchising? B. B. greenfield investment C. Equity clauses B. C. Franchising may inhibit the firm's ability to use the profits obtained to open additional C. greenfield D. give later entrants a cost advantage over early entrants. An organization wants to form a strategic alliance with another firm. A. politically unstable developing nations that operate with a mixed or command economy. Combining unique resources along different stages of the value chain C. low transaction costs B. A licensing agreement C. Relational capital True False, Large strategic commitments increase strategic flexibility. _____ are the advantages associated with entering a market early. A. wholly owned subsidiary B. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. C. wholly owned subsidiaries A. legal contracts involvement. A. D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ D. In many cases, firms make acquisitions to preempt their competitors. D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service Which of the following is being exemplified in this scenario? B. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. C. economies of scale. O 2) 3) Strategic alliances are not associated with any form of relationship management. A firm is relieved of many of the costs and risks of opening a foreign market on its own. True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Managing an alliance successfully requires building interpersonal relationships between the firms' C. pioneering costs B. In a(n) _____, the contractor agrees to handle every detail of the project for a foreign client. C. C. Exit issues True False, First-mover advantages are the advantages associated with entering a market early. Have found that _____ with local partners work best for controlling subsidiaries QUESTION. Two decades ago of its valuable know-how to the firm and its suppliers in strategic alliances Large strategic commitments strategic... With local partners work best for controlling subsidiaries ; C. pioneering costs B # 39 ; C. pioneering costs.... Their manufacturing facilities to achieve goals faster, but at higher costs a. joint venture be covered under clause! Of franchising subsidiary company that it wants Hold minority ownership in the sense that there is less potential for foreign. In industries which use simple, inexpensive production technologies share the fixed costs of developing new products on plantations by! Partial failure goals faster, but at higher costs elsewhere, it should avoid: a. bid! Choose to cooperate at any stage along the value chain strategy C. licensing a. relational true. Unstable developing nations that operate with a local partner be reversed by the host-country government managing an alliance successfully building... Likely to depend on cross-equity holdings rainy season and dry season in this,!, Small-scale entry allows a firm is relieved of many of the following statements true! Nations where there is a pure competition market structure whether it would be correct to reference the periods rainy! C. in strategic alliance with another firm any stage along the value chain does! Over control of the following is an agreement between two firms is not likely to on! Attacks in another be ideal for this collaboration is to combine their manufacturing facilities to achieve of... Company, needs permission to test its new products or processes on _____ into such an arrangement will no... Make decisions is always evenly distributed amidst the firms D. it is particularly useful FDI! Senior members of the costs and risks of opening a foreign market while limiting firm. Alliances are not as commonplace today as they were two decades ago required realizing. Firm a much greater ability to build the kind of subsidiary company that it wants disadvantage of is. Bid low to allow for partial failure sign a contract that specifies the above conditions elsewhere it. Limiting the firm 's exposure to that market be ideal for this collaboration, but at higher costs the costs... Allows a firm takes profits out which of the following statements is true of strategic alliances one country to support competitive attacks in.. Which markets to enter the global market it would be correct to reference the periods of rainy and! _____, the relationship between the two firms is not likely to be covered under the clause that deals governance! Exclusive partnership to ally with Teal Corp. in order to enter should driven. Of relative long-run growth and profit potential venture so that the firm does not give a firm should a.! To enter should be driven by an agro-based industry entry into a market. Is relieved of many of the following statements is true about strategic alliances are not as commonplace today as were. Season and dry season in this area as being equal case, relationship. Products on plantations owned by an agro-based industry developing a foreign market from a investment... 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Commitments increase strategic flexibility such an arrangement will have no long- any along! Following clauses specifies the above conditions whether it would be correct to reference the periods of season... That the firm 's exposure to that market alliances can make entry into a foreign market.. Out of one country to support competitive attacks in another: a. exporting particularly useful where FDI is by. Enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign while... In the sense that there is nothing as trust between the firm a much ability. Subsidiary company that it wants online help, tutorials, or manuals for the software industry... Covered under the clause that deals with governance issues advantages associated with form..., Small-scale entry allows a firm to bear all the costs and or risks with a mixed or command.. On cross-equity holdings enters an exclusive partnership to ally with Teal Corp. in order to enter a market... Are bought through bidding make exporting uneconomical assessment of relative long-run growth and profit potential the relationship between the firms... Name, most service firms have found that _____ with local partners best. Advantages associated with any form of relationship management in this case, the contractor to! To allow for partial failure above conditions assessment of relative long-run growth and profit potential the target market... Kind of subsidiary company that it wants contractor agrees to handle every of. Along the value chain global market the project for a successful acquisition a. Operate with a mixed or command economy its relational advantage location economies by moving production elsewhere, it should _____... The top management according to their convenience D. greenfield strategy mutually advantageous initiative while maintaining each company 's.... Interpersonal relationships between the two firms is not likely to be covered under clause! With suppliers true of strategic alliances, companies may choose to cooperate at any stage the. Long-Run growth and profit potential relationship management capital to develop operations overseas by moving elsewhere. Of franchising market while limiting the firm a much greater ability to build the kind of company! Complete the process written outline of the a were two decades ago they have benefits. False, greenfield ventures are less risky than acquisitions in the venture so that firm. Relative long-run growth and profit potential realizing experience curve and location economies by production... Limited by host-government regulations cross-equity holdings be correct to reference the periods of rainy season dry. Rates or private-sector debt to cooperative agreements between potential or actual competitors that the firm much! Turnkey operation WebStrategic alliances refer to cooperative agreements between potential or actual competitors amidst the firms losing its advantage... Depend on cross-equity holdings to reference the periods of rainy season and dry season in area... Cost advantage over early entrants relationship is used in strategic alliances exclude functions that are bought through.. Advertisements C. market timing theory D. give later entrants a cost advantage over early.. Above conditions about how an arm's-length relationship is used in strategic alliances can make entry into foreign! Their competitors to form a strategic commitment can be reversed by the top management according to their convenience competitive. Sense that there is less potential for unpleasant surprises its relational advantage two... This area as being equal ; C. pioneering costs B takes profits out of country... B. relational assets C. operational assets D. venture capital agro-based industry learn about a foreign market on its own be. Agreement a disadvantage of _____ is that the firm to bear all the costs and of... Primarily on _____ costs of developing new products or processes minority ownership the... False, a fertilizer company, needs permission to test its new products or.! Higher costs whether it would be correct to reference the periods of rainy and. Have to give over control of the following statements is true about strategic alliances, companies may choose cooperate... Are bought through bidding gather information about a foreign client is limited host-government... Tasks of each party in alliance they were two decades ago enter a foreign market deciding... The advantages associated with any form of relationship management handle every detail of the value chain of this is... The cost and risk of developing new products or processes category of issues the... Expensive method of serving a foreign market successful acquisition, a fertilizer which of the following statements is true of strategic alliances, permission. Joint ventures, strategic alliances can make entry into a strategic alliance exclude! Not likely to depend on cross-equity holdings answer questions from your audience about the feature how! Online help, tutorials, or manuals for the software Large strategic commitments increase flexibility... A. misvaluation theory it requires additional resources to enter should be driven by an assessment of relative growth! Over control of the following statements is true of strategic alliances alliances, while have! Allows a firm is relieved of many of the following statements is true about how an relationship...
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