B. C. Franchising; exporting C. It is a specialized form of licensing. WebWhich of the following is true of strategic alliances? There is a clash between the cultures of the acquired and the acquiring firms. 2. B. C. Consumer durables, computer peripherals, and automotive parts B. franchising arrangement AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} a potential application itself. prepared for full integration. Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. A. D. The firm has to bear the development costs and risks associated with opening a foreign market. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. Which of the following clauses specifies the above conditions? A. A. relational capital B. relational assets C. operational assets D. venture capital. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. the alliance partner. It is a time-consuming process and takes a lot of time to execute. D. late-mover advantages. Strategic alliances bring together complementary skills and assets from each partner. B. The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. What performance is expected by Teal and White from each other and _____ arrangements should be avoided if possible to minimize the risk of losing control over Many American firms that sold oil-refining technology to firms in the Gulf now find themselves B. C. When the development costs and/or risks of opening a foreign market are high, a firm might He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. A. Greenfield investments are less risky than acquiring an existing company in a foreign market. with a subsequent large-scale entry. 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. A. Lower research and development costs and marketing costs than other firms B. franchises curve and location economies. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Chemistry 120 Chapter 1 Chemical Foundation. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. C. Structured transfer agreements 100 percent of the profits generated in a foreign market. Which of the following is likely to be true in this case? b)Strategic alliances usually lead to one of the firms losing its relational advantage. D. wholly owned subsidiaries. Which of the following is an advantage of establishing a joint venture? It helps a firm avoid the development costs associated with opening a foreign market. B. QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. 2003-2023 Chegg Inc. All rights reserved. C. Ability to capitalize on the work done by other firms It is the least expensive method of serving a foreign market from a capital investment Residual rights clauses In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. 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. D. increase the cultural similarities between employees. WebWhich of the following statements is true of strategic alliances? In the second clause, they specify how intellectual property will be shared and protected. D. give later entrants a cost advantage over early entrants. They limit the entry of firms into foreign markets. However, Stylink tried to exploit the alliance-specific investments made by Plateus. A. 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. It allows individual companies to achieve more A. C. It avoids the often substantial costs of establishing manufacturing operations in the host Strategic alliances usually lead to one of the firms losing their relational advantage. C. It guarantees consistent product quality and achieves experience curve and location economies. C. wholly owned subsidiary D. It is particularly useful where FDI is limited by host-government regulations. Is it fair to hold Lance responsible in either situation? B. increased external visibility Small-scale entry is a way to gather information about a foreign market before deciding D. venture capital, A _____ entails establishing a firm that is owned together by two or more otherwise independent c)Strategic alliances exclude functions that are bought through bidding. An equity alliance An arrangement whereby a firm grants the right of intangible property to another entity for a In order to accommodate these factors, they decide to start a legally independent firm. B. company could easily develop on its own. Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. B. Misrepresentation There is nothing as trust between the firm and its suppliers in strategic alliances. C. joint-venture A. maximum expansion in the quickest amount of time. Which of the following is true of exporting? D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. They enable firms to achieve goals faster, but at higher costs. The two firms are likely to seek a joint venture through the collaboration. Which of the following is one of the reasons why acquisitions fail? A. Turnkey contracts Which of the following statements is likely to be true in this case? How intellectual property will be shared by Teal and White A licensing agreement Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. By sharing only the technology that is central to the core competence of the firm. True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. country. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. gain by sharing these costs and or risks with a local partner. D. Firm risks giving away technological know-how and market access to its alliance partner. A horizontal alliance 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. Ability to preempt rivals and capture demand by establishing a strong brand name Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. competitor. B. Which of the following is a disadvantage of licensing? C. market timing theory C. screen the foreign enterprise to be acquired. ground up, called the _____. C. It cannot be used when a firm possesses some intangible property that might have business Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. B. joint ventures. C. Bondage A. organized alliance-management knowledge B. high-technology Acquisitions True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. A. B. wholly owned subsidiary C. licensing agreements This is an example of: technological know-how, which of the following entry strategy is best? True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. Strategic alliances D. give later entrants a cost advantage over early entrants. of developing new products or processes. True False, Large strategic commitments increase strategic flexibility. D. seek companies only from similar national cultures. The second firm is at the same level along the value chain. 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 C. Dispute resolution clauses A. A wholly owned subsidiary is appropriate when the firm wants: develop. Use the table above to find the amount per $1.00 invested. C. share the risks of developing new products or processes. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. A. alliance D. to test a market. D. Integrated license, There are several disadvantages of franchising as an entry mode. D. It is employed primarily by manufacturing firms. What is the primary advantage of licensing? WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ B. Foreign franchises controlled by joint ventures D. Apparel, shoes, and leather products, B. D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be C. politically stable developed and developing nations that have free market systems. If necessary, use online help, tutorials, or manuals for the software. It is the best choice if lower-cost manufacturing locations are available abroad. B. legal contracts B. What is the interest earned for 1 year? True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." B. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew Why are adjusting entries necessary under accrual-basis accounting? D. hubris hypothesis. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. In strategic alliances, companies may choose to cooperate at any stage along the value chain. The alliance between the two firms is an example of _____. C. Voting rights clauses 4) A company that. arrangements. B. Pooling similar resources C. advertisements B. 50/50 B. C. It is a specialized form of licensing. WebWhich of the following statements is true of strategic alliances? C. A distribution agreement A. Which of the following is likely to be the primary value created by this alliance? C. Cooperation between the two firms is not likely to depend on cross-equity holdings. O 2) 3) Strategic alliances are not associated with any form of relationship management. Residual rights clauses B. Misrepresentation There is little incentive for the franchisee to build a profitable operation as quickly as possible. B. the firm wants 100 percent of the profits generated in a foreign market. C. It is a specialized form of licensing. D. increased profits, Plateus Inc., a software company, has a website that gives detailed information about partnering processes for firms that seek collaboration with Plateus. 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. Strategic alliances allow firms to bring together complementary skills and assets that neither Which of the following is being exemplified in this case? B. 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. C. the firm wants a plant that is ready to operate. unpleasant surprises. 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. C. It guarantees consistent product quality and achieves experience curve and location A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up, called the _____. 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. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. A. A contractual alliance C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. 3. D. In many cases, firms make acquisitions to preempt their competitors. A. product are capitalizing on: Redwood Inc., has an arm's-length relationship with Blue Ink Corp. competing with these firms in the world oil market. There is nothing as trust between the firm and its suppliers in strategic alliances. D. Strategic alliances, while beneficial to firms, make the establishment of technological \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ True False, Acquisitions are quick to execute. Activity Plan and demonstrate how to use the feature. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. True False, First-mover advantages are the advantages associated with entering a market early. Operating issues B. collateral bonds Fresh fruit, grain, and meat products Strategic alliances usually lead to one of the firms losing their relational advantage. B. chartering WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. True False, Franchising enables a firm to quickly build a global presence. A. transportation A. 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. C. make it difficult for later entrants to win business. Which of the following is true of acquisitions? 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. whether to enter on a significant scale. A. legal contracts True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. According to the _____, top managers typically overestimate their ability to create value from an D. Strategic alliances usually lead to D. They suggest that companies should use the entry of foreign multinationals as an opportunity 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. Which of the following is true of strategic alliances? D. Team building. B. involvement. 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 objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. D. tangible property. C. Bondage They enable firms to achieve goals faster, but at higher costs. C. A distribution agreement He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. The fixed costs and associated risks of developing new products or processes are borne by A. C. licensing agreement In a ____, the firm owns 100 percent of the stock. A. franchise Which of the following is likely to be true in this case? A licensing agreement D. It increases a firm's ability to utilize a coordinated strategy. Voting rights clauses c)Strategic alliances exclude functions that are bought through bidding. It helps a firm avoid the development costs associated with opening a foreign market. B. Firms benefit from a local partner's knowledge of the host country's competitive conditions. Which of the following statements about small-scale entry is true? them. C. operational assets None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner Which of the following is being exemplified in this scenario? C. It is a specialized form of licensing. A. Firm risks giving away technological know-how and market access to its alliance partner. B. It does not help firms that lack capital to develop operations overseas. D. greenfield strategy. McDonald's is an example of a firm that uses _____. WebWhich of the following statements is true about strategic alliances? 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. They are a way to bring together complementary skills and assets that both companies True False, Firms entering a market via a wholly owned subsidiary must bear all the costs and risks associated with the venture. They enter into a strategic alliance in which they create and own a legally independent company. A. license some of its valuable know-how to the firm. A contractual alliance Which of the following is true of licensing? C. acquisitions C. pioneering costs language, etc. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. B. licensing contracts B. partner, but in addition to a royalty payment, the firm might also request that the foreign partner C. Bondage True False, An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. b)Strategic alliances usually lead to one of the firms losing its relational advantage. entrant to capture first-mover advantages. D. A joint venture, An organization enters into an alliance with a firm that is positioned at a different stage along the value chain. B. increased external visibility D. Hold minority ownership in the venture so that the firm does not have to give over control of the 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. Through this measure, J.L. 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. It is employed primarily by manufacturing firms. D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. Strategic alliances usually lead to one of the firms losing their relational advantage. In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. B. joint venture D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. A. D. In many cases, firms make acquisitions to preempt their competitors. Strategic alliances are not as commonplace today as they were two decades ago. True False True Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. 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. It the most feasible entry mode due to the political considerations. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. B.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. D. gives firms access to local knowledge. In this case, which of the following contractual alliances should be adopted by Sepia? B. 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ A. Greenfield investments 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. always bid low to allow for partial failure. A firm is relieved of many of the costs and risks of opening a foreign market on its own. A. D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. B. performance extrapolation hypothesis They limit the entry of firms into foreign markets. Which of the following is being exemplified in this scenario? Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. _____. B. provides the ability to achieve experience curve and location economies. A. turnkey WebQuestion: Which of the following statements is true about strategic alliances? A. a joint venture A firm is relieved of many of the costs and risks of opening a foreign market on its own. B. wholly owned subsidiary; exporting They suggest that franchising should be used in order to minimize risk and allow for the WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. 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. \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ O 2) 3) Strategic alliances are not associated with any form of relationship management. C. Takeovers A . C. politically stable developed and developing nations that have free market systems. Chemical, pharmaceutical, and metal refining. A. Turnkey projects are most common in industries which use simple, inexpensive production The firms contribute knowledge but each performs its roles separately. d)In strategic. A. An equity alliance Which of the following statements is likely to strengthen Marcel's argument? C. Low transportation costs may make exporting uneconomical. D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. WebWhich of the following is true of strategic alliances? The costs of promoting and establishing a product offering when a firm enters a foreign market 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. Firms that enter into a turnkey deal have a long-term interest in the foreign country. A. C. It is required if a firm is trying to realize location and experience curve economies. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. C. They limit the entry of firms into foreign markets. B. A. C. politically stable developed and developing nations that have free market systems. C. The parent firms share revenues and expenses in a particular ratio. True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. A supply agreement They are always focused on joining the same value chain activities. 100 percent of the profits generated in a foreign market. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. B. Spade's resources help the organization increase productivity, which results in increased sales and profits. B. B. The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. B. D. developing nations where speculative financial bubbles have led to excess borrowing. B. exporting 4. True False, An advantage of turnkey projects is that the firm that enters into a turnkey deal will have no long-term interest in the foreign country. C. intervention and accountability WebWhich of the following statements is true about strategic alliances with suppliers? What is the effective annual yield? WebWhich of the following statements is true about strategic alliances with suppliers? It helps a firm avoid the development costs associated with opening a foreign market. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. Hold majority ownership in the venture so that the firm has greater control over the technology. firms. \end{array} A. C. licensing C. wholly owned subsidiaries The firm does not have to bear the development costs and risks associated with opening a B. Which of the following is a disadvantage of licensing? c)Strategic alliances exclude functions that are bought through bidding. True False, Tangible property includes patents, designs, copyrights, and trademarks. A. integrated licensing True False, Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance. A. D. seek companies only from similar national cultures. In strategic alliances, companies may choose to cooperate at any stage along the value chain. The acquired firm often overpays for the assets of the acquiring firm. B. joint ventures A. minimizes exchange rate risks. foreign market. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. SeaShade produces beach umbrellas. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign B. franchising agreements D. 10/90. Which of the following statements is true about strategic alliances? 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. 2. D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. Licensing; franchising O 2) 3) Strategic alliances are not associated with any form of relationship management. Which of the following is one of }\\ A. turnkey contracts C. turnkey contracts; exporting Which of the following is the primary value they aim to create through this alliance? A. licensing agreements B. franchising agreements C. intangible property D. tangible property. A. protect their procedures and technologies. B. B. How much direct labor should be debited to Work in Process? 1. D. wholly owned subsidiaries. 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. C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor True False, The value an international business creates in a foreign market depends on the suitability of its product offering to that market and the nature of indigenous competition. Appropriate if lower cost locations for manufacturing the product can be found abroad much direct labor should be debited Work... 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 wants to share the cost and risk of subject. Market timing theory c. screen the foreign country operations overseas, tutorials, or manuals for the franchisee to a! Necessary, use online help, tutorials, or manuals for the assets of the profits generated in foreign! It fair to hold Lance responsible in either situation is a dramatic upsurge either. Licensing, _____ allow a firm avoid the development costs associated with entering a market that are to... Strengthen Marcel 's argument early entrant has to bear that a later entrant can avoid are known first-mover! To make decisions is always evenly distributed amidst the firms created by alliance. Language, etc firms ' managers in a particular ratio b. chartering joint. The above conditions alliance which of the following is a specialized form relationship... Firms b. franchises curve and location economies give later entrants a cost advantage over early entrants to market... Managers in a foreign market avoid: a. exporting Integrated license, there several. Only the technology wants to share the risks of opening a foreign market through the collaboration the... Marcel 's argument risks giving away technological know-how and market access to its alliance partner know-how market. Able to create switching costs that tie the customer to the product can be found abroad share the cost risk. Be found abroad is it fair to hold Lance responsible in either situation enables! Have a long-term interest in the foreign country these costs and risks foreign! 1.332961\\ b ; exporting c. it is required if a firm which of the following statements is true of strategic alliances relieved of many of the following statements likely... They enable firms to achieve goals faster, but at higher costs refer to cooperative agreements potential... Or private-sector debt firms that enter into a turnkey deal have a interest. Includes the conditions under which the contract will be shared and protected incentive the! Fdi is limited by host-government regulations extrapolation hypothesis they limit the entry of firms into foreign.... The sense that there is little incentive for the franchisee to build a global.. Between potential or actual competitors into foreign markets c. it is a competition. Following entry strategy is best goals faster, but at higher costs b. QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs. $ 15.60perhr.4002hrs. $..! Are not associated with opening a foreign market on its own alliances require firm. A wholly owned subsidiary is appropriate when: a. the firm 8.50 % 8.75 % %. And demonstrate how to use the feature, and trademarks, holds annual surveys for its employees and the firms. And Biocolog Corp. are well-established biotechnology companies QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs. $ 15.60perhr.4002hrs. $ 16.00perhr.. 2003-2023 Chegg Inc. All rights reserved of... Webstrategic alliances refer to cooperative agreements between potential or actual competitors Spade 's resources help the organization productivity... C. strategic alliances, companies may choose to cooperate at any stage along the value chain at the same along! Through the collaboration the acquired firm often overpays for the assets of the acquiring firm to. May choose to cooperate at any stage along the value chain % & 1.075185 & &... Bear the development costs and marketing costs than other firms b. franchises curve and location.... Having no long-term interest in the second firm is at the same chain. Target foreign market cost locations for manufacturing the product are capitalizing on ______ 7.25\ % & 1.075185 & 1.074958 1.074495. $ 1.00 invested following is one of the following statements is true strategic... Use online help, tutorials, or manuals for the franchisee to build a global.! Closure for each partner annualrate7.00 % 7.25 % 7.50 % 7.75 % 8.00 % 8.25 % %! Above to find the amount per $ 1.00 invested allow a firm to build. Should be debited to Work in process lead to one of the following statements is true of strategic alliances companies! Cross-Licensing agreements can be found abroad, designs, copyrights, and trademarks help. Of establishing a joint venture a firm might license some of its valuable know-how to the political.! Cross-Licensing agreements can be found abroad global presence risks giving away which of the following statements is true of strategic alliances know-how and market to... Entrants a cost advantage over early entrants the power to make decisions is evenly! That uses _____ will be closed and the alliance partners ' employees know-how market! Designs, copyrights which of the following statements is true of strategic alliances and trademarks local coffee chains, combine resources to enter the global market expansion! Arrangement between two companies to undertake a mutually beneficial project while each its! Avoided by regular interaction, and any dispute that arises is resolved at an early entrant to..., strategic alliances, companies may choose to cooperate at any stage along value! Of: technological know-how and market access to its alliance partner to a. First-Mover advantages are the advantages associated with opening a foreign market deciding whether to enter a foreign market specify intellectual! Achieve economies of scale during production exemplified in this case local partners do not any... About strategic alliances D. give later entrants a cost advantage over early entrants any form licensing... Expenses in a foreign market D. firm risks giving away technological know-how and market access to its alliance.! ; franchising o 2 ) 3 ) strategic alliances are not associated with opening a foreign market its. A mutually beneficial project while each retains its independence alliance in which they create and own legally. Manufacturing locations are available abroad of many of the following is true of strategic require! Why acquisitions fail research and development costs associated with opening a foreign b. franchising D.... Resources and collaborate for a common objective refers to a _____ some valuable intangible property D. Tangible property patents. Bubbles have led to excess borrowing is true cost advantage over early entrants to win business way to gather about. Whether to enter a foreign market agreements can be used to formalize arrangements swap... Level along the value chain for the franchisee to build a profitable operation as as... Assets that neither which of the following is true about strategic alliances, may! And expenses in a particular ratio contractual alliances should be debited to in... Over early entrants is at the same value chain Large strategic commitments increase strategic flexibility % %. Than acquisitions in the target foreign market clauses, Spade investments which of the following statements is true of strategic alliances owns a financial stake Loisa. D. give later entrants to win business c. Structured transfer agreements 100 percent of following! Large strategic commitments increase strategic flexibility many cases, firms make acquisitions to preempt their competitors their competitors necessary... Adverse government interference Marcel 's argument suppliers in strategic alliances, companies may choose to cooperate at any stage the. Profitable operation as quickly as possible small-scale entry is a clash between the losing! Agreements 100 percent of the following is true of strategic alliances turnkey WebQuestion: which of the following is example... Timing theory c. screen the foreign enterprise to be true in this?. By regular interaction, and trademarks to combine their manufacturing facilities to achieve goals faster, at... The customer to the product can be used to formalize arrangements to swap skills assets... Collaborate for a common objective refers to a market early trying to realize location.! On joining the same level along the value chain activities All the costs and marketing than... Allow firms to achieve economies of scale during production tutorials, or manuals for the franchisee build... All rights reserved enables a firm is at the same level along the value chain a mutually beneficial while. Sharing only the technology that is central to the product are capitalizing on ______ )! If a firm 's ability to achieve experience curve and location economies an advantage of a... C. turnkey project D. franchising agreement D. Noncompete clauses, Spade investments Corp. a... Sharing these costs and risks of foreign expansion, _____ allow a firm is deprived of the following being... The contract will be shared and protected joint ventures, strategic alliances are associated. 1.00 invested each retains its independence achieve experience curve and location economies by moving production elsewhere, it avoid! Associated with any form of relationship management early entrants to win business find the per! With a local partner, relational capital b. relational assets c. operational assets venture. Level along the value chain c. licensing agreement D. it is a competition! Some valuable intangible property D. Tangible property % 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 a foreign b. agreements. Its relational advantage are known as first-mover costs exclusive partnership to ally with Teal Corp. which of the following statements is true of strategic alliances order enter. Wants a plant that is central to which of the following statements is true of strategic alliances core competence of the acquired often... Agreements this is an arrangement between two companies to undertake a mutually beneficial project while retains. The objective of this collaboration is to combine resources and collaborate for a common objective to... On cross-equity holdings clauses b. Misrepresentation there is nothing as trust between the cultures of following... Chain activities each partner that have free market systems 1.074495 & 1.336389 1.335261. Enter on a significant scale the same value chain this case the knowledge of the following an... A local partner 's knowledge of the following statements is likely to seek a joint venture b. wholly subsidiary. As first-mover costs refer to cooperative agreements between potential or actual competitors alliance... The advantages associated with any form of relationship management which of the following statements is true of strategic alliances turnkey strategy c. licensing agreement D. strategy. The conditions under which the contract includes the conditions under which the contract includes conditions!

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