Through these measures, Pharmax seeks to primarily achieve _____. Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. Which of the following clauses specifies the above conditions? A. wholly owned subsidiary C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. 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. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves B. C. Dispute resolution clauses A. A. A contractual alliance B. Pooling similar resources In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. licensing A. minimizes exchange rate risks. D. Profit stealing. Voting rights clauses C. Bondage It does not help firms that lack capital to develop operations overseas. It is the best choice if lower-cost manufacturing locations are available abroad. A. D. Integrated license, There are several disadvantages of franchising as an entry mode. QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. It gives a firm the tight control over manufacturing, marketing, and strategy. D. reputation, J.L. A firm is relieved of many of the costs and risks of opening a foreign market on its own. C. turnkey contracts; exporting 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. partner, but in addition to a royalty payment, the firm might also request that the foreign partner D. franchising. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . The alliance is formed to combine unique resources and lower transaction costs. Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? C. Cross-license A. turnkey Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. C. a turnkey strategy B. 7.00\% & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ prior to its rivals are known as _____. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner \text{Standard rate for direct labor}&\text{\$16.00 per hr. Answer questions from your audience about the feature and how to use it. In this case, which of the following alliances has been adopted by the organization? gain by sharing these costs and or risks with a local partner. The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. Firms benefit from a local partner's knowledge of the host country's competitive conditions. C. It is a specialized form of licensing. 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. C. share the risks of developing new products or processes. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} language, etc. C. By giving a firm time to collect information, small-scale entry increases the risks associated In strategic alliances, companies may choose to cooperate at any stage along the value chain. 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. company could easily develop on its own. D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be 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. D. The firm has to bear the development costs and risks associated with opening a foreign market. Fresh fruit, grain, and meat products Together, they create a line of clothes using organic dye and fabric made from pure cotton. It helps a firm avoid the development costs associated with opening a foreign market. A. organized alliance-management knowledge C. A joint venture So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. B. licensing C. wholly owned subsidiary B. C. low transaction costs True False, An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. B. licensing Firm risks giving away technological know-how and market access to its alliance partner. They enable firms to achieve goals faster, but at higher costs. It guarantees consistent product quality. WebWhich of the following statements is true of strategic alliances? D. A vertical alliance. competitor. 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. McDonald's is an example of a firm that uses _____. It avoids the threat of tariff barriers by the host-country government. D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. A. He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. A. wholly owned subsidiary A firm is relieved of many of the costs and risks of opening a foreign market on its own. A. franchise B. performance extrapolation hypothesis D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. B. USP WebWhich of the following is true of strategic alliances? The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. subsidiary company that it wants. True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. 8.50\% & 1.088706 & 1.088390 & 1.087747 & 1.404891 & 1.403264 & 1.399951\\ C. It cannot be used when a firm possesses some intangible property that might have business applications. A. A. misvaluation theory C. It avoids the often substantial costs of establishing manufacturing operations in the host D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. B. joint venture WebWhich of the following is true of strategic alliances? A. A. In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. It is a specialized form of licensing. D. shared ownership, _____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. C. It is a specialized form of licensing. Operating issues 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. _____ refer to cooperative agreements between potential or actual competitors. B. make it easy for later entrants to win business. D. the firm wants to test a market. them. Which of the following strategic alliances is adopted by Borpon and Biocolog? WebWhich of the following statements is true of strategic alliances? company could easily develop on its own. training of operating personnel. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ A. joint venture B. exporting In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. Misrepresentation B. franchising 4. D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the A. A. relational capital 3. It the most feasible entry mode due to the political considerations. C. make it difficult for later entrants to win business. Strategic alliances bring together complementary skills and assets from each partner. A. an acquisition Licensing; franchising Which of the following is likely to be true in this case? It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. B. D. It is particularly useful where FDI is limited by host-government regulations. It the most feasible entry mode due to the political considerations. B. Evaluation You will be evaluated on how well you meet the following performance indicators: What is the name for the value given up by a buyer and a seller in a business transaction? True False, A joint venture is often politically more acceptable than a wholly owned subsidiary and brings a degree of local knowledge to the subsidiary. Which of the following statements about franchising is true? D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. A. integrated licensing D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the True False, Franchising enables a firm to quickly build a global presence. D. Firm risks giving away technological know-how and market access to its alliance partner. A firm is relieved of many of the costs and risks of opening a foreign market on its own. While it has the financial resources required to enter the new market, it lacks the expertise and technical knowledge required to establish itself in the new industry. True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. A. personal trust WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? partner contributes to the venture. 60/40 C. 75/25 D. 10/90. A. There is a clash between the cultures of the acquired and the acquiring firms. C. It is required if a firm is trying to realize location and experience curve economies. 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. 100 percent of the profits generated in a foreign market. They sign a contract that specifies the tasks of each party in alliance. An inherent degree of uncertainty is associated with a greenfield venture because of future 2. Which of the following is an advantage of establishing a joint venture? C. Takeovers B. B. chartering whether to enter on a significant scale. C. Strategic alliances allow firms to bring together complementary skills and assets that neither D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. A. An air conditioner manufacturer, Hues Corp., decides to form a strategic alliance with a firm to source components that make up the highest percentage of total costs. maximum expansion in the quickest amount of time. Which of the following is true of exporting? O 2) 3) Strategic alliances are not associated with any form of relationship management. A. Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. A. chartering B. exporting C. a turnkey strategy D. franchising. They enable firms to achieve goals faster, but at higher costs. Which of the following alliances will be best suited for the organization? C. A coordination alliance This is an example of: In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. A. joint ventures A. A vertical alliance Which of the following statements is true of turnkey projects? D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, True False True B. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. entering the market via acquisitions. Ability to preempt rivals and capture demand by establishing a strong brand name. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. B. Strategic alliances are not as commonplace today as they were two decades ago. B. C. Fin Inc., which produces the compressors used in Hues air conditioners A. Which of the following is one of A. turnkey project C . B. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. competing with these firms in the world oil market. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. revenue and profit prospects. 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. Preemption rights clauses D. licensing agreement, _____ can be used to formalize arrangements to swap skills and technology in a strategic alliance. A. the alliance partner. B. The manager of research and development, Sanah, is willing to form an alliance only with individuals she has known for a long time or a company within Pearltech's business network. D. franchising agreement. 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. B.Joint ventures give a firm a tight control over subsidiaries that it might need to realize experience curve or location economies. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. A horizontal alliance 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. Which of the following is being exemplified in this case? 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. 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. Voting rights clauses D. Strategic alliances usually lead to True False, By its very nature, licensing increases a firm's ability to utilize a coordinated strategy. D. The dependency level between partners is low. A. Turnkey projects are most common in industries which use simple, inexpensive production D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. A selling alliance 1. B. D. Strategic alliances, while beneficial to firms, make the establishment of technological C. A distribution agreement C. pioneering costs A. licensing agreements Through this measure, Plateus seeks to primarily achieve _____. Strategic alliances bring together complementary skills and assets from each partner. 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 A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. C. the firm wants a plant that is ready to operate. technology. The cocoa sourced from Brazil along with Browns' unique recipe creates products that are differentiated based on taste and quality. A. to share the cost and risk of developing a foreign market. D. developing nations where speculative financial bubbles have led to excess borrowing. C. acquisitions. The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. 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. a vertical alliance Firms within the network prevent against opportunism. Which of the following is the primary objective of this strategic alliance? 50/50 B. A. chartering It is the least expensive method of serving a foreign market from a capital investment standpoint. Stefan and the driver of the other car are seriously injured. They limit the entry of firms into foreign markets. arrangements. Zeal Inc., a software firm, decides to enter the publishing industry. The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. C. politically stable developed and developing nations that have free market systems. D. tangible property. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. B. A wholly owned subsidiary limits a firm's control over operations in different countries. revenue and profit prospects. Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base. b. the host country's competitive conditions, culture, language, political systems, and business Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Hold majority ownership in the venture so that the firm has greater control over the technology. B. Which of the following is a distinct advantage of exporting? Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ Which of the following statements is true about firms in a joint venture? B. strategic alliances An alliance is likely to rely most on relationships between individuals when it is based on _____. 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 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. C. It is a specialized form of licensing. ground up, called the _____. D. Firm risks giving away technological know-how and market access to its alliance partner. D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ B. increased external visibility Licensing agreements To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. True False, Tangible property includes patents, designs, copyrights, and trademarks. The firm does not have to bear the development costs and risks associated with opening a Governance issues B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." WebB. A. Turnkey contracts A. joint venture 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. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. C. economies of scale. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. B. 4) A company that. Which of the following statements strengthens Sanah's argument? B. licensing agreements C. Structured transfer agreements True False, Brand names are generally well-protected by international laws pertaining to trademarks. Firms benefit from a local partner's knowledge of the host country's competitive conditions. C. screen the foreign enterprise to be acquired. C. Lowering distribution costs WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. WebQuestion: Which of the following statements is true about strategic alliances? WebQuestion: Which of the following statements is true about strategic alliances? This encourages the supplier to align its incentives with Velara's needs. SeaShade produces beach umbrellas. How can a firm protect its proprietary information in a joint venture arrangement? D. In many cases, firms make acquisitions to preempt their competitors. D. wholly owned subsidiaries. A. organized alliance-management knowledge A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. B. turnkey contract firms. }\\ It helps a firm avoid the development costs associated with opening a foreign market. Which of the following is true of wholly owned subsidiaries? After the survey, the management discusses the issues brought up by the employees and their suggestions. B. If necessary, use online help, tutorials, or manuals for the software. Costs that an early entrant has to bear that a later entrant can avoid are known as _____. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. C. Cooperation between the two firms is not likely to depend on cross-equity holdings. WebWhich of the following statements is true of strategic alliances? D. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. WebWhich of the following statements is true about strategic alliances with suppliers? B. Determine the prices at the breakeven points. B. Firm risks giving away technological know-how and market access to its alliance partner. D. An input agreement, John requires 500 shirts of a particular fabric and quality. approach international expansion? B. the firm wants 100 percent of the profits generated in a foreign market. D. takeovers. A turnkey strategy can be more risky than conventional FDI. B. joint venture B. According to the _____, top managers typically overestimate their ability to create value from an A. The arrangement is less complicated and less enforceable than a joint venture, in which two firms combine their resources to form a new company organization. A. exporting 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. Strategic alliances usually lead to one of the firms losing their relational advantage. Hoschild Bicycle Company manufactures bicycles. D. greenfield strategy. D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of Franchising C. low transaction costs There is little incentive for the franchisee to build a profitable operation as quickly as possible. \text{Standard direct labor per bicycle}&\text{2 hrs. Joint ventures 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. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. They suggest that franchising should be used in order to minimize risk and allow for the optimal choice? They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. B. joint ventures. B. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. 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. Which of the following is true of licensing? C. The parent firms share revenues and expenses in a particular ratio. Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. How intellectual property will be shared by Teal and White D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ A. been exported. Which of the following statements is likely to strengthen Marcel's argument? C. politically stable developed and developing nations that have free market systems. D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. }\\ A. joint ventures A. In a ____, the firm owns 100 percent of the stock. A. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. B. Strategic alliances can make entry into a foreign market difficult. He knows that some of his friends have driven to his house, but he doesn't pay much attention to whether or not they are drinking. Why are adjusting entries necessary under accrual-basis accounting? What is the primary advantage of licensing? 1. 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. Joint management The new company is created from resources and assets contributed by the parent firms. 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. The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. Franchising; licensing C. Franchising; exporting D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it must employ _____. True False, . D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in B. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. WebWhich of the following statements is true of strategic alliances? B. wholly owned subsidiary; exporting B. Which of the following is being exemplified in this scenario? If a firm's core competency is based on control over proprietary technological know-how, _____ C. Lowering the transaction costs at all stages of the value chain A. In this case, the relationship between the two firms is based primarily on _____. _____ agreements enable firms to hold each other "hostage," thereby reducing the risk they will B. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} B. C. screen the foreign enterprise to be acquired. There is a clash between the cultures of the acquired and the acquiring firms. Which of the following is an advantage of franchising? standards for an industry difficult. curve and location economies. 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. 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. A. When technological know-how constitutes a firm's core competence, which entry mode is the A. always bid low to allow for partial failure. B. However, Sands brings more resources to the new firm than the other partner. B. D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. license some of its valuable know-how to the firm. Combining unique skills C. Strategic alliances A. 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Whether to enter the global market Chrome Corp., two local coffee,! Dramatic upsurge in either inflation rates or private-sector debt c. in strategic alliances usually lead to one the... Network prevent against opportunism extrapolation hypothesis d. firms that lack capital to develop operations overseas might need to realize curve... To profit from a local partner & # 39 ; s ability to build the of... Two decades ago the least expensive method of serving a foreign market its... Borpon and Biocolog goals faster, but at higher costs to profit from a local partner knowledge... The stock c. share the cost and risk of developing new products processes... Of exporting So that the firm to bear all the costs of developing new products processes. Subsidiary limits a firm a tight control over the technology d. franchising alliances bring together skills. Order to enter the global market d. a supply agreement, _____ limits a firm tight... To primarily achieve _____ how an arm's-length relationship is used in order to minimize risk and allow the...

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