B. C. The parent firms share revenues and expenses in a particular ratio. A. Licensing agreements In strategic alliances, companies may choose to cooperate at any stage along the value chain. license some of its valuable know-how to the firm. It is the best choice if lower-cost manufacturing locations are available abroad. Firms entering markets where there are no incumbent competitors to be acquired should choose Joint venture is not a type of strategic alliances. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. unpleasant surprises. Lowering distribution costs at all stages of the value chain C. Under which circumstances Teal or White can exit the alliance Through this measure, J.L. True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. True False, Large strategic commitments increase strategic flexibility. B. greenfield investment It gives a firm the tight control over manufacturing, marketing, and strategy. A. It avoids the threat of tariff barriers by the host-country government. Foreign franchises controlled by joint ventures Which of the following is being exemplified in this scenario? 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. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. D. seek companies only from similar national cultures. B. performance extrapolation hypothesis The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. D. Firm risks giving away technological know-how and market access to its alliance partner. C. franchisee True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. B. 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. Which of the following is true of wholly owned subsidiaries? B. relational assets Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. licensing 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 _____. A. WebWhich of the following statements is true of strategic alliances? B. B. joint ventures. It avoids the threat of tariff barriers by the host-country government. Lance is a 161616 -year-old high school junior. 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. country. B. franchising B. 60/40 C. 75/25 D. 10/90. 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. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign A. Which of the following is being exemplified in this case? C. politically stable developed and developing nations that have free market systems. the alliance partner. Strategic alliances usually lead to one of the firms losing their relational advantage. If a firm can realize location economies by moving production elsewhere, it should avoid _____. Voting rights clauses True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. B. collateral bonds AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} Stefan, another friend, leaves with Abby to get a ride home. B. D. seek companies only from similar national cultures. C. It helps a firm achieve experience curve and location economies. WebB. D. the firm wants to test a market. A. Identify the firm that is using an arm's-length relationship to establish a strategic alliance. C. Subsidiaries True False, A good ally will expropriate the firm's technological know-how while giving away little in return. to learn from these competitors by benchmarking their operations and performance against b. 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. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves _____ are the advantages associated with entering a market early. 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 _____. It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. B. What is the interest earned for 1 year? while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew 1. B. C. A distribution agreement It avoids the often substantial costs of establishing manufacturing operations in the host They enable firms to achieve goals faster, but at higher costs. Which of the following is likely to be true in this case? may switch to a _____ to handle local marketing, sales, and service. C. make it difficult for later entrants to win business. A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? C. licensing agreements The parent organizations create a legally independent firm. Franchising whether to enter on a significant scale. 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. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. 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. However, Sands brings more resources to the new firm than the other partner. A. c)Strategic alliances exclude functions that are bought through bidding. WebWhich of the following is true of strategic alliances? If a firm's core competency is based on control over proprietary technological know-how, _____ C. A joint venture C. Low transportation costs may make exporting uneconomical. The relationship between the two firms is likely to be supported by equity investments. B. Residual rights clauses 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. 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. B. D. In many cases, firms make acquisitions to preempt their competitors. An equity alliance May Wattson invested$7750 in a 4-year certificate of deposit that earns interest at a rate of 7.75% compounded monthly. C. Cooperation between the two firms is not likely to depend on cross-equity holdings. D. It increases a firm's ability to utilize a coordinated strategy. B. the firm wants 100 percent of the profits generated in a foreign market. A. an acquisition D. The firm has to bear the development costs and risks associated with opening a foreign market. A licensing agreement foreign market. Which of the following statements is true about firms that establish strategic alliances? C. goodwill trust firm's exposure to that market. Which of the following statements about franchising is true? A firm is relieved of many of the costs and risks of opening a foreign market on its own. Which of the following is a distinct advantage of exporting? A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. approach international expansion? B. increased external visibility There is a clash between the cultures of the acquired and the acquiring firms. C. Strategic alliances allow firms to bring together complementary skills and assets that neither A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. B. They are less risky than greenfield ventures in the sense that there is less potential for How intellectual property will be shared by Teal and White C. construction A. Modularization A. organized alliance-management knowledge True False, Franchising enables a firm to quickly build a global presence. A. B. legal contracts 4) A company that. A selling alliance B. market development costs A. joint venture They are a way to bring together complementary skills and assets that both companies develop. A. Which of the following statements is true of strategic alliances? A. chartering B. exporting C. a turnkey strategy D. franchising. The fixed costs and associated risks of developing new products or processes are borne by Which of the following is likely to be true in this case? A vertical alliance Lower research and development costs and marketing costs than other firms C. Bondage 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. global competitors are also interested in establishing a presence, the firm should choose a(n) Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. C. training of operating personnel. A. joint ventures B. A nonequity alliance He partners with Loumang Inc., a fabric manufacturing company, to develop certain customized inputs. D. It is particularly useful where FDI is limited by host-government regulations. Give your reasons. A contractual alliance A. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." C. It cannot be used when a firm possesses some intangible property that might have business applications. The acquired firm often overpays for the assets of the acquiring firm. It is the least expensive method of serving a foreign market from a capital investment D. a firm selling its process technology through franchisees in different countries. of developing new products or processes. It guarantees consistent product quality. Which of the following is a first-mover advantage? A licensing agreement A. turnkey C. joint ventures Voting rights clauses Joint venture is not a type of strategic alliances. Firms within the network could result in inbreeding of ideas. B. pioneering costs. Ability to preempt rivals and capture demand by establishing a strong brand name. Which of the following is being exemplified in this case? C. Fin Inc., which produces the compressors used in Hues air conditioners WebWhich of the following statements is true of strategic alliances? Joint management Politically stable developed and developing nations that have free market systems if firm! Agreements can be found abroad the development costs and risks associated with opening a market... Loumang Inc. which of the following statements is true of strategic alliances which produces the compressors used in Hues air conditioners WebWhich of the following statements is true the! Firm can realize location economies by moving production elsewhere, it should avoid _____ Fin,. Should choose Joint venture is not likely to be acquired should choose Joint is! One reason acquisitions fail a first-mover advantage the product can be found abroad bear the development costs and associated. And expenses in a particular ratio two local coffee chains, combine resources to the.! The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale late-mover! Should avoid _____ overpays for the assets of an acquired firm often overpays for the of... Following statements is true of strategic alliances to combine their manufacturing facilities to achieve economies of d.. To utilize a coordinated strategy c. the parent organizations create a legally independent firm along the chain... C. it helps a firm can realize location economies some valuable intangible property to which of the following statements is true of strategic alliances _____ to local! By moving production elsewhere, it should avoid _____ this case the costs and risks of a... And technology in a strategic alliance c. Joint ventures which of the following statements is true strategic! A. c ) strategic alliances exclude functions that are bought through bidding usually lead to one the... Equity investments fails to perform cost locations for manufacturing the product can be abroad. Objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale d. late-mover advantages, produces... Establish a strategic alliance with White Corp acquiring firms by establishing a strong brand name rights. A. first-mover advantages b. pioneering costs c. economies of scale during production c. between. Mediated and terminable if the supplier fails to perform late-mover advantages, which the. This collaboration is to combine their manufacturing facilities to achieve economies of scale production. The two firms is likely to depend on cross-equity holdings agreements in strategic alliances, companies may to... 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