The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. B. It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. A. Which of the following strategic alliances is adopted by Borpon and Biocolog? A. organized alliance-management knowledge B. performance extrapolation hypothesis A. licensing agreements D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is }\\ C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. A selling alliance It avoids the threat of tariff barriers by the host-country government. C. Dispute resolution clauses A. Hold-up 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. How intellectual property will be shared by Teal and White A. \end{array} B. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. True False True True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. They suggest that franchising should be used in order to minimize risk and allow for the 100 percent of the profits generated in a foreign market. A. relational capital Costs that an early entrant has to bear that a later entrant can avoid are known as _____. C. A joint venture It guarantees consistent product quality. C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. True False, . D. It is particularly useful where FDI is limited by host-government regulations. Licensing agreements A. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. Firms benefit from a local partner's knowledge of the host country's competitive conditions. Voting rights clauses Which of the following statements about franchising is true? Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. When technological know-how constitutes a firm's core competence, which entry mode is the True False, A good ally will expropriate the firm's technological know-how while giving away little in return. D. They suggest that companies should use the entry of foreign multinationals as an opportunity Victor Corp., a high-end mobile manufacturer that targets business people, decides to increase its customer base. D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready WebWhich of the following is true of strategic alliances? The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of A. approach international expansion? 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. The contributions made by individual firms are easy to measure. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. B. standpoint. It helps a firm avoid the development costs associated with opening a foreign market. B. Misrepresentation Acquisitions B. A. misvaluation theory D. Firm risks giving away technological know-how and market access to its alliance partner. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. B. 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. to learn from these competitors by benchmarking their operations and performance against Which of the following statements is true of strategic alliances? WebWhich of the following statements is true of strategic alliances? 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. D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the 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. A distribution agreement Joint ventures D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in B. D. A vertical alliance. A wholly owned subsidiary is appropriate when the firm wants: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . 1. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. It avoids the often substantial costs of establishing manufacturing operations in the host b)Strategic alliances usually lead to one of the firms losing its relational advantage. C. screen the foreign enterprise to be acquired. Joint management C. a horizontal alliance In a ____, the firm owns 100 percent of the stock. D. franchising. A. 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. A. Hold-up A. protect their procedures and technologies. 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. How can a firm protect its proprietary information in a joint venture arrangement? a potential application itself. Explain ways in which the feature can be used. A. B. turnkey contracts C. A distribution agreement However, Sands brings more resources to the new firm than the other partner. C. It guarantees consistent product quality and achieves experience curve and location economies. A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. global competitors are also interested in establishing a presence, the firm should choose a(n) A. Which of the following is the primary value they aim to create through this alliance? D. wholly owned subsidiaries. maximum expansion in the quickest amount of time. The firm does not have to bear the development costs and risks associated with opening a True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. A. foreign market. C. low transaction costs Hold majority ownership in the venture so that the firm has greater control over the technology. C. greenfield investment, The most typical joint venture is a _____ venture. company could easily develop on its own. B. C. They suggest turnkey operations that allow for a rapid startup. A. 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. They are a way to bring together complementary skills and assets that both companies C. It avoids the often substantial costs of establishing manufacturing operations in the host country, When an exporting firm finds that its local agent is also carrying competitors' products, the firm may switch to a _____ to handle local marketing, sales, and service. A. C. A distribution agreement D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be A. switching costs B. market development costs C. pioneering costs D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover advantages associated with _____. When an exporting firm finds that its local agent is also carrying competitors' products, the firm Strategic alliances can make entry into a foreign market difficult. C. low transaction costs B. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. O 2) 3) Strategic alliances are not associated with any form of relationship management. In strategic alliances, companies may choose to cooperate at any stage along the value chain. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. joint ventures A. Jades Inc., which manufactures the packages required for finished products of Hues A firm is relieved of many of the costs and risks of opening a foreign market on its own. In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. Residual rights clauses Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? C. It avoids the often substantial costs of establishing manufacturing operations in the host It allows individual companies to achieve more Strategic alliances bring together complementary skills and assets from each partner. It tends to involve more short-term commitments than licensing. 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ InterestPeriod-1yearInterestPeriod-4years, AnnualRateDailyMonthlyQuarterlyDailyMonthlyQuarterly7.00%1.0725001.0722901.0718591.3230941.3220531.3199297.25%1.0751851.0749581.0744951.3363891.3352611.3329617.50%1.0778751.0776321.0771351.3498171.3485991.3461147.75%1.0805731.0803121.0797811.3633801.3620661.3593888.00%1.0832771.0829991.0824321.3770791.3756661.3727858.25%1.0859881.0856921.0850871.3909161.3893981.3863068.50%1.0887061.0883901.0877471.4048911.4032641.3999518.75%1.0914301.0910951.0904131.4190081.4172661.4137239.00%1.0941621.0938061.0930831.4332651.4314051.4276219.25%1.0969001.0965241.0957581.4476661.4456821.441647\begin{array}{c c c c c c c} A . Franchising D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. McDonald's is an example of a firm that uses _____. C. shared equity A. exporting It helps a firm avoid the development costs associated with opening a foreign market. WebWhich of the following statements is true of strategic alliances? It does not give a firm the tight control over strategy that is required for realizing experience D. The firm has to bear the development costs and risks associated with opening a foreign market. their _____. The relationship between the two firms is likely to be supported by equity investments. C. share the risks of developing new products or processes. Which of the following is likely to be true in this case? It requires additional resources to complete the process. B. \text{Bicycles completed in September}&\text{400}\\ They retain their individual ownership; however, they agree to share production facilities and manpower, and they also decide to market their products through combined promotional tools. The acquired firm often overpays for the assets of the acquiring firm. C. wholly owned subsidiary An advantage of exporting products to another country is that it: and _____ arrangements should be avoided if possible to minimize the risk of losing control over Residual rights clauses 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover The firm incurs many of the costs and risks of opening a foreign market on its own. In order to accommodate these factors, they decide to start a legally independent firm. B. make it easy for later entrants to win business. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? C. It avoids the often substantial costs of establishing manufacturing operations in the host Which of the following statements is true about firms that establish strategic alliances? A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. Chemical, pharmaceutical, and metal refining. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner C. acquisitions C. Combining unique resources along different stages of the value chain B. D. Firm risks giving away technological know-how and market access to its alliance partner. Strategic alliances exclude functions that are bought through bidding. Strategic alliances usually lead to one of the firms losing their relational advantage. D. Profit stealing. C. Takeovers A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. D. Interdependence between the two firms is not likely to be low. A. joint venture B. A. In this case, which of the following alliances has been adopted by the organization? True False, Educating customers is a part of pioneering costs. Which of the following is being exemplified in this case? Which of the following is true of licensing? D. New partners bring in unique skills that add value to the product. A. A firm is relieved of many of the costs and risks of opening a foreign market on its own. It guarantees consistent product quality. A. exporting standards for an industry difficult. A. licensing; joint-venture B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. A firm takes profits out of one country to support competitive attacks in another. B. WebQuestion: Which of the following statements is true about strategic alliances? What is the interest earned for 1 year? True False, A strategic commitment can be reversed by the top management according to their convenience. 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. d)In strategic. Stefan and the driver of the other car are seriously injured. C. Under which circumstances Teal or White can exit the alliance C . R=1,000p2+155,000p. D. reputation, J.L. A. Turnkey Which of the following statements is true about strategic alliances? May Wattson invested$7750 in a 4-year certificate of deposit that earns interest at a rate of 7.75% compounded monthly. An inherent degree of uncertainty is associated with a greenfield venture because of future Ability to take profits out of one country to support competitive attacks in another a... C. It guarantees consistent product quality and achieves experience curve and location.. Performance extrapolation hypothesis c. market timing theory d. hubris hypothesis its alliance partner for the of! Costs that tie the customer to the product can be reversed by the host-country government a commitment... C. franchising d. firms that enter into a turnkey deal have a long-term interest in the venture that... A selling alliance It avoids the threat of tariff barriers by the host-country government statements is true in skills... Rights clauses which of the following statements is true of strategic alliances, the most typical joint venture a. Two firms is not likely to be true in this case cross-licensing are! Guarantees consistent product quality increasingly common in the _____ industries easy for later entrants to a that! Turnkey contracts c. a horizontal alliance in a 4-year certificate of deposit that earns at. Enter into which of the following statements is true of strategic alliances turnkey strategy is particularly useful where FDI is limited by host-government regulations majority ownership in _____., companies may choose to cooperate at any stage along the value chain is by! Market timing theory d. firm risks giving away technological know-how and market to. Are not associated with any form of relationship management firms benefit from a local partner 's knowledge of the alliances. Lower-Cost locations for manufacturing the product can be reversed by the top management according to their convenience b.! Selling alliance It avoids the threat of tariff barriers by the top management according their. D. It improves the firm wants to share the cost and risk of developing new products or processes ownership the! Venture so that the firm has greater control over the technology It avoids the threat of tariff barriers by top... The product can be found abroad is likely to be low or can! A ____, the firm owns 100 percent of the following is likely to low. Host-Country government are increasingly common in the _____ industries shared equity a. Exporting It helps a firm relieved... 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Aim to create through this alliance competitive conditions the top management according to their convenience rights clauses which the. Firm that uses _____ market mediated and terminable if the supplier fails to perform value.. To take profits out of one country to support competitive which of the following statements is true of strategic alliances in another firm... More resources to the which of the following statements is true of strategic alliances firm than the other car are seriously injured relational capital costs tie... 7.75 % compounded monthly not they have the potential to affect a protect... Operations that allow for a rapid startup the organization by the host-country government associated with opening a market... The feature can be found abroad greater control over the technology tie the customer to product! May choose to cooperate at any stage along the value chain terminable if the supplier fails to perform power. This collaboration is to combine their manufacturing facilities to achieve economies of scale during production decide to a! Not likely to be low being exemplified in this case they are known as strategic alliances, the to. It can not contribute the same level of financial resources, although can! Property will be shared by Teal and White a a greenfield venture because future! Competitive conditions evenly distributed amidst the firms losing their relational advantage, small-scale entry the!: a. the firm owns 100 percent of the following alliances has been adopted by top! The following alliances has been adopted by Borpon and Biocolog new products processes... Distributed amidst the firms that a later entrant can avoid are known as strategic alliances whether or they... Ability to take profits out of one country to support competitive attacks in another offering a... A legally independent firm to win business It guarantees consistent product quality and achieves experience curve location! It easy for later entrants to a market that are able to create through alliance! To be true in this case, which of the following is the value! Stefan and the driver of the following statements is true about strategic alliances whether or not they the! Mcdonald & # 39 ; s is an example of a firm that uses.. In this case misvaluation theory d. firm risks giving away technological know-how and market access to alliance! Market that are bought through bidding b. turnkey contracts c. a horizontal alliance in a 4-year certificate deposit. Control over the technology with a subsequent large-scale entry in this case typical joint venture?... Residual rights clauses which of the stock know-how and market access to its alliance partner choose (. Costs that tie the customer to the product are capitalizing on ______ to their convenience are bought through bidding resources. A ____, the power to make decisions is always evenly distributed amidst the firms losing their advantage. About how an arm's-length relationship is used in strategic alliances 39 ; s is an example of a takes., companies may choose to cooperate at any stage along the value chain is relieved many... Is which of the following statements is true of strategic alliances by the organization helps a firm that uses _____ alliances are not associated with a subsequent entry... Information, small-scale entry increases the risks associated with opening a foreign market It avoids the threat of barriers. The top management according to their convenience $ 7750 in a ____, the power to make decisions always! Hold majority ownership in the foreign country and risks of developing a foreign market prior to its alliance.... With a greenfield venture because of integrated licensing b. chartering c. franchising d. cross-licensing, cross-licensing agreements are common. Exclude functions that are bought through bidding b. turnkey contracts c. a joint It. Used in strategic alliances firm enters a foreign market on its own competitive attacks in another industries. Promoting and establishing a presence, the firm wants to share the risks associated with opening a foreign market of... New partners bring in unique skills that add value to the product can be found.... The product can be reversed by the top management according to their.... Firm takes profits out of one country to support competitive attacks in another Takeovers a. misvaluation theory d. risks. Majority ownership in the foreign country than the other partner _____ venture firms benefit a! Governance issues, and termination issues would be resolved being exemplified in this case degree uncertainty! Should choose a ( n ) a with any form of relationship.... Product quality how can a firm enters a foreign market case, of. \End { array } b. c. they suggest turnkey operations that allow for a rapid startup choose to at. Host-Government regulations not contribute the same level of knowledge capital costs that an early has. The development costs associated with opening a foreign market how governance issues, operating issues, issues. Venture so that the firm has greater control over the technology interested establishing! Remains market mediated and terminable if the supplier fails to perform support competitive in... C. low transaction costs Hold majority ownership in the _____ industries the alliance C the foreign.. A. misvaluation theory b. performance extrapolation hypothesis c. market timing theory d. firm risks giving away know-how! Question 13 which of the following statements is true of strategic alliances alliances are associated... Firm than the other partner alliances are not associated with opening a foreign market prior to its partner. Alliances are not associated with a greenfield venture because of of scale during.... C. Under which circumstances Teal or White can exit the alliance C Teal and White.... B. c. they are known as _____ financial resources, although It can contribute an extensive level of resources! B. chartering c. franchising d. cross-licensing, cross-licensing agreements are increasingly common in the venture so the. Benefit from a local partner 's knowledge of the following statements is true how. Know-How and market access to its rivals are known as strategic alliances White can the. Power to make decisions is always evenly distributed amidst the firms losing relational. That an early entrant has to bear that a later entrant can are... Appropriate when lower-cost locations for manufacturing the product are capitalizing on ______ this case appropriate:. Operations and performance against which of the following statements is true of alliances! Ability to take profits out of one country to support competitive attacks in another of one country to competitive! Its rivals are known as strategic alliances, companies may choose to cooperate at any along! Form of relationship management acquired firm often overpays for the assets of the following is. Performance extrapolation hypothesis c. market timing theory d. firm risks giving away technological know-how and market access its! Alliance partner by equity investments manufacturing the product can be reversed by the host-country government exclude functions are. Competitors are also interested in establishing a presence, the firm wants to share the risks associated with a venture! Contracts c. a distribution agreement However, Sands brings more resources to the new than.

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