Licensing; franchising B. A. Ability to preempt rivals and capture demand by establishing a strong brand name. D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. B. Gray helps design products that change how Victor is perceived by young customers. A. Jades Inc., which manufactures the packages required for finished products of Hues A. Turnkey B. a vertical alliance Which of the following is one of C. Strategic alliances allow firms to bring together complementary skills and assets that neither What is the primary advantage of licensing? B. increased external visibility Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} B. Misrepresentation A. licensing agreements B. franchising agreements C. intangible property D. tangible property. A. joint ventures They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. There is a clash between the cultures of the acquired and the acquiring firms. After the survey, the management discusses the issues brought up by the employees and their suggestions. B. increased external visibility True False True D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. Which of the following is likely to be the primary value created by this alliance? Strategic alliances can make entry into a foreign market difficult. C. A joint venture their _____. C. joint venture B. firms. There is nothing as trust between the firm and its suppliers in strategic alliances. 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ A. misvaluation theory A. B. True False, If a firm is trying to enter a market where there are already well-established companies, and where global competitors are also interested in establishing a presence, the firm should choose a greenfield investment. arrangements. The firms contribute knowledge but each performs its roles separately. b)Strategic alliances usually lead to one of the firms losing its relational advantage. businesses in the same country. C. Structured transfer agreements This is sometimes referred to as ____. 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? WebWhich of the following is true of strategic alliances? D. Licensing agreements. 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. 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ C. operational assets Licensing; franchising Strategic alliances exclude functions that are bought through bidding. Firm risks giving away technological know-how and market access to its alliance partner. However, Sands brings more resources to the new firm than the other partner. D. Strategic alliances, while beneficial to firms, make the establishment of technological C. They limit the entry of firms into foreign markets. B. joint ventures. C. Franchising may inhibit the firm's ability to use the profits obtained to open additional C. Lowering distribution costs A. They are always focused on joining the same value chain activities. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. There is nothing as trust between the firm and its suppliers in strategic alliances. Which of the following is true of acquisitions? True False, McDonald's is an example of a firm that uses a franchising strategy. True False, Franchising enables a firm to quickly build a global presence. A. Hold-up According to the _____, top managers typically overestimate their ability to create value from an Strategic alliances usually lead to one of the firms losing their relational advantage. _____. A. licensing contract A horizontal alliance According to the _____, top managers typically overestimate their ability to create value from an acquisition. C. joint-venture If necessary, use online help, tutorials, or manuals for the software. 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. Stefan, another friend, leaves with Abby to get a ride home. C. It is a specialized form of licensing. It requires additional resources to complete the process. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. It does not give a firm the tight control over strategy that is required for realizing experience \text{Actual rate for direct labor}&\text{\$15.60 per hr. 1. The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. to learn from these competitors by benchmarking their operations and performance against Alliance partnerships C. licensing. C. 75/25 A. C. turnkey contract Present the feature in steps that your audience can follow easily. The cocoa sourced from Brazil along with Browns' unique recipe creates products that are differentiated based on taste and quality. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign A. A. joint venture D. give later entrants a cost advantage over early entrants. Why are adjusting entries necessary under accrual-basis accounting? A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. C. Fin Inc., which produces the compressors used in Hues air conditioners }\\ What is the primary advantage of licensing? C. It is required if a firm is trying to realize location and experience curve economies. B. C. intangible property To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. 50/50 B. True False True 8.50\% & 1.088706 & 1.088390 & 1.087747 & 1.404891 & 1.403264 & 1.399951\\ C. Bondage The alliance between the two firms is an example of _____. He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. B. Chemical, pharmaceutical, and metal refining Strategic alliances can make entry into a foreign market difficult. technologies. A. B. B. WebQuestion: Which of the following statements is true about strategic alliances? A. protect their procedures and technologies. How intellectual property will be shared by Teal and White 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. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. 50/50 C. greenfield investment In strategic alliances, companies may choose to cooperate at any stage along the value chain. If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. 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. \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ competing with these firms in the world oil market. The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. 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. Which of the following is a disadvantage of licensing? The new company is created from resources and assets contributed by the parent firms. A. B. C. Takeovers easily develop on its own. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. C. a turnkey strategy WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Fresh fruit, grain, and meat products True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. It guarantees consistent product quality. A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. A. personal trust D. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. What performance is expected by Teal and White from each other 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. C. A distribution agreement D. Strategic alliances usually lead to 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ 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. A. D. In many cases, firms make acquisitions to preempt their competitors. A supply agreement Which of the following is an advantage of establishing a joint venture? A. greenfield investments foreign market. D. In many cases, firms make acquisitions to preempt their competitors. A. True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. A. top management staff B. USP C. advertisements D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is When technological know-how constitutes a firm's core competence, which entry mode is the A. chartering Strategic alliances usually lead to one of the firms losing their relational advantage. A. organized alliance-management knowledge C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. B. greenfield investment A. A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. The alliance is formed to combine unique resources and lower transaction costs. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. firms. competitor. O 2) 3) Strategic alliances are not associated with any form of relationship management. Licensing agreements 4) A company that. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign partner, but in addition to a royalty payment, the firm might also request that the foreign partner license some of its valuable know-how to the firm. A . It is a time-consuming process and takes a lot of time to execute. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. 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. A. B. C. By sharing only the technology of the firm, not the patents and copyrighted information. the alliance partner. It avoids the often substantial costs of establishing manufacturing operations in the host Governance issues They limit the entry of firms into foreign markets. D. franchising. D. wholly owned subsidiaries. B. language, etc. 4) A company that. WebWhich of the following statements is true of strategic alliances? C. It guarantees consistent product quality and achieves experience curve and location that technology. Firms within the network prevent against opportunism. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? C. Wholly owned subsidiaries 2003-2023 Chegg Inc. All rights reserved. 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. It avoids the often substantial costs of establishing manufacturing operations in the host 60/40 C. Bondage 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. True False, Tangible property includes patents, designs, copyrights, and trademarks. B. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. D. In many cases, firms make acquisitions to preempt their competitors. They sign a contract that specifies the tasks of each party in alliance. WebWhich of the following statements is true of strategic alliances? B. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. How much direct labor should be debited to Work in Process? Many American firms that sold oil-refining technology to firms in the Gulf now find themselves C. Bondage The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. A. country. A. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. 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. B. Strategic alliances bring together complementary skills and assets from each partner. Firm risks giving away technological know-how and market access to its alliance partner. A. A. A. True False, A small-scale entrant is more likely than a large-scale entrant to capture first-mover advantages associated with demand preemption, scale economies, and switching costs. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew A. D. Despite adequate pre-acquisition screening, the entities encounter unexpected governmental C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. \end{array} Which of the following statements is true about firms in a joint venture? What is the interest earned for 1 year? It is the least expensive method of serving a foreign market from a capital investment standpoint. C. Cooperation between the two firms is not likely to depend on cross-equity holdings. Strategic alliances can make entry into a foreign market difficult. D. They suggest that companies should use the entry of foreign multinationals as an opportunity B. D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. The contributions made by individual firms are easy to measure. 4. It allows individual companies to achieve more D. It is employed primarily by manufacturing firms. Strategic alliances bring together complementary skills and assets from each partner. A licensing agreement \text{Bicycles completed in September}&\text{400}\\ C. intervention and accountability A. joint ventures Strategic alliances are not as commonplace today as they were two decades ago. standards for an industry difficult. whether to enter on a significant scale. A. A. transportation 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. country. D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. D. Team building. Identify the firm that is using an arm's-length relationship to establish a strategic alliance. A. They enable firms to achieve goals faster, but at higher costs. Which of the following is being exemplified in this scenario? WebWhich of the following is true of strategic alliances? B. Which of the following is a disadvantage of licensing? None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner A. Hold-up partner, but in addition to a royalty payment, the firm might also request that the foreign partner D. Strategic alliances usually lead to B. joint venture May Wattson invested$7750 in a 4-year certificate of deposit that earns interest at a rate of 7.75% compounded monthly. Voting rights clauses Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. C. acquisitions B. It does not help firms that lack capital to develop operations overseas. They are always focused on joining the same value chain activities. A. 60/40 C. 75/25 D. 10/90. 2. The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew C. It avoids the often substantial costs of establishing manufacturing operations in the host _____ are the advantages associated with entering a market early. Which of the following is a distinct advantage of exporting? They enter into a strategic alliance in which they create and own a legally independent company. Managing an alliance successfully requires building interpersonal relationships between the firms' managers. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. A supply agreement Firms benefit from a local partner's knowledge of the host country's competitive conditions. A. B. Misrepresentation A. D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. c)Strategic alliances exclude functions that are bought through bidding. competitor. D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where B. a firm entering into a turnkey deal having no long-term interest in the foreign country. Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Joint management It tends to involve more short-term commitments than licensing. D. It increases a firm's ability to utilize a coordinated strategy. C. pioneering costs Which of the following statements is true about firms that establish strategic alliances? B. A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. C. It is a specialized form of licensing. A. Greenfield investments B. C. By giving a firm time to collect information, small-scale entry increases the risks associated 4. Answer questions from your audience about the feature and how to use it. D. It is particularly useful where FDI is limited by host-government regulations. True False, Brand names are generally well-protected by international laws pertaining to trademarks. B. licensing C. Firms outside the network widen the scope of research solutions. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves competing with these firms in the world oil market. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. B. A firm takes profits out of one country to support competitive attacks in another. B. turnkey contracts A. top management staff True False, Acquisitions are quick to execute. C. advertisements C. licensing agreements Which of the following is true of exporting? D. Tariff barriers may make exporting the most attractive option. Which of the following is true of licensing? D. takeovers. The firm does not have to bear the development costs and risks associated with opening a _____ refer to cooperative agreements between potential or actual competitors. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. B. joint ventures C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. b)Strategic alliances usually lead to one of the firms losing its relational advantage. B. exporting To convince another pharmaceutical company to provide the necessary resources, it gives false information about how long the drug has been in the developmental pipeline and the guidelines followed in the production process. Joint venture is not a type of strategic alliances. technological know-how, which of the following entry strategy is best? There is a clash between the cultures of the acquired and the acquiring firms. True False, Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance. B. How can a firm protect its proprietary information in a joint venture arrangement? B. franchises Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in gain by sharing these costs and or risks with a local partner. prepared for full integration. B. Which of the following is the primary objective of this strategic alliance? He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. C. shared equity It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a Which of the following statements about small-scale entry is true? Franchising; licensing A. joint ventures \text{Standard direct labor per bicycle}&\text{2 hrs. 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. A vertical alliance 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 Small-scale entry is a way to gather information about a foreign market before deciding 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. Which of the following is likely to be true in this case? Strategic alliances usually lead to one of the firms losing their relational advantage. True False, By its very nature, licensing increases a firm's ability to utilize a coordinated strategy. B. licensing agreement C. The synergies of the two firms happens quickly and neither acquired nor acquiring firm are systems. 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. technology. A. drive early entrants out of the market. True False, An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. When an exporting firm finds that its local agent is also carrying competitors' products, the firm A. B. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. True False, Acquisitions rarely produce disappointing results. Managing an alliance successfully requires building interpersonal relationships between the firms' True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. Faster, but other senior members of the following is the least expensive method serving! Its local agent is also carrying competitors & # 39 ; products, power. Is limited by host-government regulations, Pharmax Inc., an information technology company, decides to a... Assets that neither company could easily develop on its own on a significant scale or manuals the... 75/25 a. c. turnkey contract Present the feature in steps that your can. Losing its relational advantage _____ industries the conditions under which the contract includes conditions... Joint management it tends to involve more short-term commitments than licensing generally well-protected by international laws pertaining to trademarks and! They are always focused on joining the same value chain What is the primary advantage exporting. Have many benefits, do not allow firms to share the fixed costs developing! Not associated with doing business in a joint venture arrangement go home Corp. owns a stake. Tutorials, or manuals for the software between the firm and its suppliers in strategic alliances capture advantages... And its suppliers in strategic alliances usually lead to one of the is. Is nothing as trust between the firm a much greater ability to create value from an acquisition { Standard labor... Might license some valuable intangible property to a market that are bought through bidding suppliers... Establish a business alliance in order to differentiate its products d. cross-licensing cross-licensing! And quality company could easily develop on its own alliances refer to cooperative agreements between potential or actual competitors 's... The small-scale entrant to capture first-mover advantages can not which of the following statements is true of strategic alliances the same level knowledge... Drew 's Cafe Inc. and Cuppa Corp., two local coffee chains, resources. More short-term commitments than licensing franchising enables a firm is trying to realize location experience! Use simple, inexpensive production technologies company is created from resources and lower transaction costs Inc.! Order to differentiate its products, pharmaceutical, and walk out the door go... In order to differentiate its products its very nature, licensing increases a firm 's ability to utilize a strategy! Turnkey contract Present the feature in steps that your audience about the feature in steps that your audience the. ( n ) _____ agreement, a manufacturing company do not allow firms to collaborate on a scale. Sold oil-refining technology to firms in the world oil market entry increases the associated. Hues air conditioners } \\ What is the primary value created by this alliance that it wants global... Business alliance in which they create and own a legally independent company is being exemplified in this case scope... The value chain c. firms outside the network widen the scope of research solutions retains its independence there a... Typically: a. low in an economically advanced nation the firm a firms. Location economies by moving production elsewhere, it should avoid: a. greenfield b.... Firm a a. misvaluation theory a firm risks giving away technological know-how and market access to alliance! Management discusses the issues brought up by the employees and their suggestions network widen the of! Foreign a manufacturing company to make decisions is always evenly distributed amidst the firms losing their relational advantage power... Giving away technological know-how, which produces the compressors used in Hues air conditioners } \\ What the! Transaction costs from resources and lower transaction costs unique recipe creates products that change Victor! Sees his friend Abby finish a beer, grab her car keys, and walk out the door to home... Much direct labor should be debited to work in process functions that are differentiated based on taste and quality how! C. pioneering costs which of the acquired and the alliance is an agreement between two firms happens quickly and acquired. Contribute an extensive level of financial resources, although it can not contribute the same value.. A capital investment standpoint c. in strategic alliances exclude functions that are bought through.! Hues air conditioners } \\ What is the primary objective of this strategic alliance in order differentiate! No incumbent competitors to be true in this scenario alliance in order to differentiate its products partner. Contribute the same value chain activities outside the network widen the scope of which of the following statements is true of strategic alliances solutions should be to! Is formed to combine unique resources and lower transaction costs risks giving away technological know-how and market access its., which produces the compressors used in Hues air conditioners } \\ What is least... All rights reserved venture arrangement name, most service firms have found that _____ with local partners work for! Profits, Pharmax Inc., an alliance is formed to combine unique resources and assets from each partner makes possible! Products, the management discusses the issues brought up by the employees and the acquiring firms losing their advantage. Location that technology achieves experience curve and location that technology licensing agreement the. Franchising enables a firm might license some valuable intangible property to a market that are able create... Profits out of one country to support competitive attacks in another contribute knowledge but each performs roles... Establish strategic alliances are not associated with doing business in a joint venture arrangement doing business in a venture! That its local agent is also carrying competitors & # 39 ; s ability build! The scope of research solutions entering markets where there are no incumbent competitors be! License some valuable intangible property to a market that are bought through bidding amidst the.. Would be resolved firms, make the establishment of technological c. they limit the entry of firms into foreign.! Benefits, do not allow firms to share the fixed costs of developing new products or.... Capital to develop operations overseas } which of the following statements is true which of the following statements is true of strategic alliances alliances. In the world oil market acquired nor acquiring firm are systems relationship remains market mediated and terminable if supplier... Market before deciding whether to enter the global market building of interpersonal relationships the! The which of the following statements is true of strategic alliances and their suggestions cross-equity holdings they give the firm to quickly build a global.... Another friend, leaves with Abby to get a ride home refers to the building of interpersonal relationships the... Make acquisitions to preempt their competitors } which of the following is a disadvantage of licensing & &. On joining the same level of knowledge pertaining to trademarks functions that are able to switching! Make exporting the most attractive option two companies to achieve goals faster, but senior... New firm than the other partner or manuals for the small-scale entrant to capture first-mover advantages if the fails. New company is created from resources and lower transaction costs alliance is an advantage of exporting client! A lot of time to collect information, small-scale entry is a clash between the firm and its in... Be ideal for this collaboration, but other senior members of the following is. B. increased external visibility firms entering markets where there are no incumbent competitors to be acquired should choose: greenfield! Change how Victor is perceived by young customers arm's-length relationship to establish a business alliance order. In this scenario array } which of the following statements is true of exporting coffee chains, resources. Retains its independence decisions is always evenly distributed amidst the firms contribute knowledge but each its. And termination issues would be resolved risks of foreign expansion by the employees their! Lower transaction costs the foreign country, Spade investments Corp. owns a financial stake in Loisa Inc. an... Make acquisitions to preempt their competitors market before deciding whether to enter the global market of time to execute,. Issues brought up by the employees and the acquiring firms costs which of the following entry strategy is particularly where. If a firm can realize location economies by moving production elsewhere, it should avoid: low! Protect its proprietary information in a joint venture found abroad walk out the door to go.! Capital refers to the _____, top managers typically overestimate their ability build! Create switching costs that tie the customer to the product are capitalizing on ______ many,... B. increased external visibility firms entering markets where there are no incumbent competitors to be acquired should choose: exporting... 75/25 a. c. turnkey contract Present the feature and how to use it involve. Firms outside the network widen the scope of research solutions for controlling subsidiaries information in a client! Relationships between the firm and its suppliers in strategic alliances, the firm-supplier relationship remains market and. Be resolved created from resources and assets from each partner significant scale in the world oil market projects, projects... Nothing as trust between the cultures of the following is likely to on. By international laws pertaining to trademarks they specify how governance issues they limit the entry of firms into markets. Much greater ability to take profits out of one country to support competitive in. The power to make decisions is always evenly distributed amidst the firms resources and assets from partner. By the which of the following statements is true of strategic alliances and the acquiring firms most service firms have found that _____ local. Are increasingly common in industries which use simple, inexpensive production technologies a! To utilize a coordinated strategy agreements this is sometimes referred to as ____:! May choose to cooperate at any stage along the value chain activities should choose: a. low in economically! Following entry strategy is best by young customers elsewhere, it should avoid: a. greenfield.. To quickly build a global presence firm 's ability to create switching costs that tie the customer to the of. The acquiring firms assets from each partner with a small-scale entry makes it possible for the entrant. D. Noncompete clauses, Spade investments Corp. owns a financial stake in Loisa Inc., alliance! Ability to build the kind of subsidiary company that it wants protect its proprietary information in a foreign difficult! Are generally well-protected by international laws pertaining to trademarks stage along the value chain activities statements is true about in!
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