D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. 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. Bondage . It guarantees consistent product quality. C. politically stable developed and developing nations that have free market systems. 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. Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? B. make it easy for later entrants to win business. D. to test a market. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. An advantage of _____ with a local partner is the knowledge of the local environment that the local A. B. Describe the proximity of the wettest areas of the savanna in East Africa to the Equator. B. wholly owned subsidiary D. shared ownership, _____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. Situation You are the assistant information technology manager for a local newspaper. A. A. franchise A. wholly owned subsidiary B. franchising arrangement C. turnkey operation D. licensing agreement, In _____, the contractor agrees to handle every detail of the project for a foreign client, including the training of operating personnel. 7.00\% & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ Strategic alliances An equity alliance It does not help firms that lack capital to develop operations overseas. C. pioneering costs A. Which of the following statements about small-scale entry is true? D. The dependency level between partners is low. C. franchising True False True Firms within the network could result in inbreeding of ideas. B. A. transportation curve and location economies. C. joint-venture Franchising; licensing \text{Quantity of direct labor used}&\text{850 hrs. Joint management Licensing; franchising }\\ A. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner C. It is a specialized form of licensing. A. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. 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. 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. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. C. Equity clauses C. make it difficult for later entrants to win business. D. give later entrants a cost advantage over early entrants. C. Franchising; exporting C. A distribution agreement They limit the entry of firms into foreign markets. acquisition. C. wholly owned subsidiary Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base. D. turnkey contract. Strategic alliances usually lead to one of the firms losing their relational advantage. D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. B. high-technology standpoint. A. the alliance partner. B. turnkey strategy A. A supply agreement It helps a firm avoid the development costs associated with opening a foreign market. \text{Bicycles completed in September}&\text{400}\\ Strategic alliances can make entry into a foreign market difficult. Revenues, expenses, and profits are equally shared by both firms. D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of \text{AMOUNT PER \$1.00 INVESTED, DAILY, MONTHLY, AND QUARTERLY COMPOUNDING} C. licensing C. It cannot be used when a firm possesses some intangible property that might have business applications. C. make it difficult for later entrants to win business. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. B. A. Hold-up Voting rights clauses C. Wholly owned subsidiaries C. They limit the entry of firms into foreign markets. D. Despite adequate pre-acquisition screening, the entities encounter unexpected governmental }\\ 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. WebWhich of the following is true of strategic alliances? C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor C. intangible property the business opportunities for companies in the developing country. They form an alliance to benefit from complementary activities. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. B. licensing Which of the following statements is true of strategic alliances? 4) A company that. C. a country subsequently proving to be a major market for the output of the process that has 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 _____. An arrangement whereby a firm grants the right of intangible property to another entity for a C. It cannot be used when a firm possesses some intangible property that might have business If necessary, use online help, tutorials, or manuals for the software. A. Strategic alliances can make entry into a foreign market difficult. A. relational capital C. Termination clauses It is a time-consuming process and takes a lot of time to execute. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. The editor has asked you to show her writers a software feature that will make their job easier. . B. increased external visibility A. A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. B. What performance is expected by Teal and White from each other 1. It gives a firm the tight control over manufacturing, marketing, and strategy. B. Which of the following is a disadvantage of licensing? True False, The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country. D. Foreign franchises controlled by joint ventures, D. Foreign franchises controlled by joint ventures. 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. give later entrants a cost advantage over early entrants. A. C. A distribution agreement Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. A. D. 10/90. True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. B. A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. Firm risks giving away technological know-how and market access to its alliance partner. D. greenfield strategy. C. joint ventures entrant to capture first-mover advantages. B. Lower research and development costs and marketing costs than other firms A _____ is more likely to capture first-mover advantages associated with demand preemption, _____ is advantageous because it avoids the cost of establishing manufacturing operations in the. Acquisitions D. wholly owned subsidiaries. C. Dispute resolution clauses D. gain by sharing these costs and or risks with a local partner. B. O 2) 3) Strategic alliances are not associated with any form of relationship management. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew They enable firms to achieve goals faster, but at higher costs. C. politically stable developed and developing nations that have free market systems. Small-scale entry is a way to gather information about a foreign market before deciding B. As Abby pulls her car onto the highway, she swerves and hits another car head-on. Chemical, pharmaceutical, and metal refining. C. make it difficult for later entrants to win business. A. Preemption rights clauses businesses in the same country. C. greenfield investment, The most typical joint venture is a _____ venture. D. Team building. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. Which of the following is likely to be true in this case? 3. D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it It does not give a firm the tight control over strategy that is required for realizing experience Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Which of the following is true of acquisitions? C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. D. Ability to preempt rivals and capture demand by establishing a strong brand name maximum expansion in the quickest amount of time. gain by sharing these costs and or risks with a local partner. C. It is required if a firm is trying to realize location and experience curve economies. It the most feasible entry mode due to the political considerations. \text{Actual rate for direct labor}&\text{\$15.60 per hr. A. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. True False, Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: A. politically unstable developing nations that operate with a mixed or command economy. C. It is required if a firm is trying to realize location and experience curve economies. A. Modularization He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home.

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