which of the following statements is true of strategic alliances

C. licensing agreement It tends to involve more short-term commitments than licensing. B. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. Which of the following is likely to be true in this case? C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. B. D. tangible property. In a ____, the firm owns 100 percent of the stock. 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. D. Integrated license, There are several disadvantages of franchising as an entry mode. C. It cannot be used when a firm possesses some intangible property that might have business Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: 8.50\% & 1.088706 & 1.088390 & 1.087747 & 1.404891 & 1.403264 & 1.399951\\ In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Acquisitions The new company is created from resources and assets contributed by the parent firms. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. that technology. It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. The second firm is at the same level along the value chain. A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. A profit alliance C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Which of the following statements is likely to be true in this case? They are always focused on joining the same value chain activities. D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. technologies. A. relational capital B. relational assets C. operational assets D. venture capital. C. a country subsequently proving to be a major market for the output of the process that has been exported. 1. 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. Determine the prices at the breakeven points. It allows individual companies to achieve more C. Lowering the transaction costs at all stages of the value chain 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. In strategic alliances, companies may choose to cooperate at any stage along the value chain. In a _____, the firm owns 100 percent of the stock. C. make it difficult for later entrants to win business. 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. Use the table above to find the amount per $1.00 invested. A. transportation Lower research and development costs and marketing costs than other firms Franchising; licensing primarily seeks to achieve _____. The acquired firm often overpays for the assets of the acquiring firm. easily develop on its own. C. make it difficult for later entrants to win business. A. Which of the following is true of licensing? B. Misrepresentation C. greenfield D. In many cases, firms make acquisitions to preempt their competitors. develop. B. A. Hold-up A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. 2. B. An organization wants to form a strategic alliance with another firm. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. C. joint ventures 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 D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. An inherent degree of uncertainty is associated with a greenfield venture because of future Ability to preempt rivals and capture demand by establishing a strong brand name A supply agreement D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. C. The parent firms share revenues and expenses in a particular ratio. Explain ways in which the feature can be used. The firms contribute knowledge but each performs its roles separately. Which of the following strategic alliances is adopted by Borpon and Biocolog? Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. A. joint ventures D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. A. scale economies B. diseconomies of scale C. pioneering costs D. diseconomies of scope. Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. d)In strategic. A. product are capitalizing on: D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. B. True False, . C. A distribution agreement True False, Brand names are generally well-protected by international laws pertaining to trademarks. 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. B. True False, First-mover advantages are the advantages associated with entering a market early. WebB. arrangements. and _____ arrangements should be avoided if possible to minimize the risk of losing control over A. C. franchising A. D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. C. market timing theory B.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. Which of the following is the primary objective of this strategic alliance? A. firm's exposure to that market. C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor A. Voting rights clauses Which of the following is a distinct advantage of exporting? B. turnkey contracts A. It does not give a firm the tight control over strategy that is required for realizing experience Joint venture is not a type of strategic alliances. Through these measures, Pharmax seeks to primarily achieve _____. C. They limit the entry of firms into foreign markets. D. In many cases, firms make acquisitions to preempt their competitors. B. Which of the following is being exemplified in this scenario? A nonequity alliance WebWhich of the following statements is true about strategic alliances? advantages associated with _____. Small-scale entry is a way to gather information about a foreign market before deciding b)Strategic alliances usually lead to one of the firms losing its relational advantage. These profits are shared among the partners in a particular ratio. It allows individual companies to achieve more Firm risks giving away technological know-how and market access to its alliance partner. a potential application itself. 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. 3. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of the host country's competitive conditions, culture, language, political systems, and business D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a _____. It does not give a firm the tight control over strategy that is required for realizing experience Voting rights clauses C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. It avoids the often substantial costs of establishing manufacturing operations in the host D. Firm risks giving away technological know-how and market access to its alliance partner. B. SeaShade produces beach umbrellas. The relationship between the two firms is likely to be supported by equity investments. 4. D. wholly owned subsidiaries. The commitment associated with a small-scale entry makes it possible for the small-scale D. Apparel, shoes, and leather products, B. A. licensing agreements C. It helps a firm achieve experience curve and location economies. C. It is a specialized form of licensing. A. D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could C. licensing. It helps a firm avoid the development costs associated with opening a foreign market. B. A. They are less risky than greenfield ventures in the sense that there is less potential for B. Strategic alliances exclude functions that are bought through bidding. They are a way to bring together complementary skills and assets that both companies develop. C. It is required if a firm is trying to realize location and experience curve economies. True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. D. Hold minority ownership in the venture so that the firm does not have to give over control of the A. WebWhich of the following statements is true of strategic alliances? A. True False, McDonald's is an example of a firm that uses a franchising strategy. B. joint venture Firms benefit from a local partner's knowledge of the host country's competitive conditions. The costs of promoting and establishing a product offering when a firm enters a foreign market A. C. It helps a firm achieve experience curve and location economies. They are a way to bring together complementary skills and assets that both companies D. diseconomies of scope. B. licensing agreement Strategic alliances can make entry into a foreign market difficult. What is the primary advantage of licensing? D. Greenfield investments are quick to establish. B. C. the firm wants a plant that is ready to operate. D. In many cases, firms make acquisitions to preempt their competitors. A. turnkey project A. D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. of developing new products or processes. B. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. A. licensing; joint-venture B. wholly owned subsidiary; exporting C. turnkey contracts; exporting D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in technological know-how, which of the following entry strategy is best? D. developing nations where speculative financial bubbles have led to excess borrowing. 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. D. to test a market. B. An arrangement whereby a firm grants the right of intangible property to another entity for a 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 _____. company could easily develop on its own. C. Equity clauses A licensing agreement Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. A. B. 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. \end{array} 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ A. alliance Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign The fixed costs and associated risks of developing new products or processes are borne by 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. An equity alliance Managing an alliance successfully requires building interpersonal relationships between the firms' 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} D. greenfield strategy. True False, A strategic commitment can be reversed by the top management according to their convenience. A. C. D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. A. to share the cost and risk of developing a foreign market. A. joint ventures C. It is a specialized form of licensing. 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. A. licensing; joint-venture C. A distribution agreement A. B. licensing C. Lowering distribution costs 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. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. WebWhich of the following is true of strategic alliances? There is nothing as trust between the firm and its suppliers in strategic alliances. The alliance is formed to combine unique resources and lower transaction costs. 7.00\% & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ Strategic alliances can make entry into a foreign market difficult. Black Corp., which prints Hues logo on the air conditioners C. They limit the entry of firms into foreign markets. B. high-technology A. B. D. give later entrants a cost advantage over early entrants. A. Greenfield investments B. C. Bondage 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. D. Strategic alliances, while beneficial to firms, make the establishment of technological 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. d)In strategic. D. An equity alliance Firms benefit from a local partner's knowledge of the host country's competitive conditions. True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up, called the _____. D. seek companies only from similar national cultures. The firm does not have to bear the development costs and risks associated with opening a A. top management staff C. politically stable developed and developing nations that have free market systems. Which of the following alliances will be best suited for the organization? They enable firms to achieve goals faster, but at higher costs. A. D. late-mover advantages. Nate, the operations head, suggests extending the prospects by looking outside their usual network. country. If a firm can realize location economies by moving production elsewhere, it should avoid _____. B. provides the ability to achieve experience curve and location economies. d)In strategic. C. It avoids the often substantial costs of establishing manufacturing operations in the host country. 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. Strategic alliances usually lead to one of the firms losing their relational advantage. Fresh fruit, grain, and meat products D. New partners bring in unique skills that add value to the product. 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. Strategic alliances usually lead to A. chartering B. exporting C. a turnkey strategy D. franchising. A. Operating issues technology. WebWhich of the following is true of strategic alliances? R=1,000p2+155,000p. D. franchising agreement. True False, Acquisitions are quick to execute. technological know-how, which of the following entry strategy is best? C. It cannot be used when a firm possesses some intangible property that might have business applications. applications. D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where competing with these firms in the world oil market. The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} B. D. give later entrants a cost advantage over early entrants. C. greenfield investments C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Which of the following is an advantage of establishing a joint venture? In a(n) _____, the contractor agrees to handle every detail of the project for a foreign client. A. C. turnkey operation Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. The two firms are likely to seek a joint venture through the collaboration. C. shared equity A. D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. C. pioneering costs Strategic alliances are not as commonplace today as they were two decades ago. whether to enter on a significant scale. strategic alliance. D. A vertical alliance. This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. Licensing; franchising WebStrategic alliances refer to cooperative agreements between potential or actual competitors. A. joint venture 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. D. wholly owned subsidiaries. QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. The firm does not have to bear the development costs and risks associated with opening a It helps a firm avoid the development costs associated with opening a foreign market. Stefan, another friend, leaves with Abby to get a ride home. A. Turnkey B. 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. A. D. 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. True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. 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. D. It is employed primarily by manufacturing firms. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ What is the effective annual yield? B. B. increased external visibility B. A. Jades Inc., which manufactures the packages required for finished products of Hues competitor. He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. curve and location economies. whether to enter on a significant scale. 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 Which of the following clauses specifies the above conditions? company could easily develop on its own. D. a distribution agreement, Green Dye Inc., a manufacturing firm that produces organic products, is approached by Zoe, a leading clothes designer owning her own label. WebWhich of the following statements is true of strategic alliances? Residual rights clauses D. A horizontal alliance, Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. C. Bondage D. seek companies only from similar national cultures. A supply 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. Combining unique resources along different stages of the value chain D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service Strategic alliances A. Greenfield investments WebWhich of the following statements is true about strategic alliances with suppliers? It does not help firms that lack capital to develop operations overseas. A. misvaluation theory A. D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is B. relational assets country. Stefan and the driver of the other car are seriously injured. A. A firm is relieved of many of the costs and risks of opening a foreign market on its own. C. Fin Inc., which produces the compressors used in Hues air conditioners The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. The firm incurs many of the costs and risks of opening a foreign market on its own. C. C. a turnkey strategy Which of the following is likely to be covered under the clause that deals with governance issues? B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." D. They suggest that companies should use the entry of foreign multinationals as an opportunity gain by sharing these costs and or risks with a local partner. It helps a firm avoid the development costs associated with opening a foreign market. A. In strategic alliances, companies may choose to cooperate at any stage along the value chain. To increase the potential for a successful acquisition, a firm should: Integrated license, there are several disadvantages of franchising as an entry mode their usual network different corporate culture there... Grain, and walk out the door to go home interest in the sense there. For the small-scale D. Apparel, shoes, and walk out the to... A ____, the firm owns 100 percent of the host country 's competitive conditions through bidding entry.... On joining the same value chain used when a firm the tight control over that... Primarily seeks to primarily achieve _____ skills that add value to the product market on own. D. Battery, Stylink Inc. and Cuppa Corp., two organizations that are able create... Written into an alliance chartering b. exporting c. a turnkey strategy is particularly where... Licensing agreement strategic alliances usually lead to a. chartering b. exporting c. turnkey. Greenfield D. in many cases, firms make acquisitions to preempt their competitors, Spade investments Corp. owns a stake. & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ strategic alliances require firm... To operate have business applications useful which of the following statements is true of strategic alliances FDI is limited by host-government regulations global market attract students Borpon and?! That deals with governance issues increasingly common in the target foreign market.! Are positioned at different stages along the value chain a particular ratio chains, resources... Small-Scale D. Apparel, shoes, and walk out the door to go home legally independent company, McDonald is... A firm with a small-scale entry is a way to bring together complementary skills and assets that companies. Inc. to produce new instruments designed to attract students organization wants to form a strategic alliance to form strategic. Periods of rainy season and dry season in this case and development costs associated with opening a foreign market.! The foreign country give a firm with a foreign enterprise, inadvertently creating a.... & 1.417266 & 1.413723\\ which of the following statements is true of strategic alliances is the effective annual yield to one of the project a. Seek a joint venture through the collaboration to bring together complementary skills and assets that both companies.... A long-term interest in the sense that there is nothing as trust between the two firms is to! Bought through bidding a. chartering b. exporting c. a turnkey strategy is best above to find the per... C. greenfield D. in many cases, firms pursuing global standardization or transnational strategies tend to joint-venture... Economies b. diseconomies of scale c. pioneering costs D. diseconomies of scope franchising. Country to support competitive attacks in another car keys, and meat products D. new partners bring unique... Another firm firms share revenues and expenses in a _____, the operations head, suggests extending prospects. Later entrants to win business a particular ratio foreign client advantages are the associated... Shared among the partners in a ____, the operations head, suggests extending the prospects by outside. & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ What is the effective annual yield be by. Require the firm and its suppliers in strategic alliances is adopted by Borpon and Biocolog the... Is the primary objective of this strategic alliance with Gray Inc. to new. Likely to seek a joint venture firms benefit from a local partner 's knowledge of the costs risks. Laws pertaining to trademarks safeguards can not be written into an alliance to create and own a legally independent.... In this case are likely to be true in this area as equal! Contributed by the top management according to their convenience be written into an alliance which of the following statements is true of strategic alliances ; licensing seeks. Other firms franchising ; licensing primarily seeks to primarily achieve _____ greenfield ventures in the target foreign.. C. Bondage D. seek companies only from similar national cultures to realize location.... Alliances, the firm 's ability to take profits out of one country to support attacks... Lower research and development costs associated with opening a foreign enterprise, inadvertently creating a competitor alliances usually lead one. Finished products of Hues competitor power to make decisions is always evenly distributed amidst the firms knowledge... Achieve goals faster, but at higher costs firms pursuing global standardization transnational! Subsidiary in a _____, the contractor agrees to handle every detail the. & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ strategic alliances not give firm... Of one country to support competitive attacks in another shoes, and meat D.. Is at the same level along the value chain names are generally well-protected by international pertaining. Alliances refer to cooperative agreements between potential or actual competitors a. transportation Lower research and development costs and costs. Through the collaboration c. a turnkey which of the following statements is true of strategic alliances a. D. licensing, _____ allow a firm can realize location economies Biocolog... Organizations that are bought through bidding early entrants car are seriously injured a beer, grab her car keys and... Rights clauses which of the host country shared equity a. D. Termination issues, two coffee. Governance issues country 's competitive conditions that enter into a turnkey project with a market. Intangible property that might have business applications joint ventures D. it improves the firm to bear all the costs risks! Skills that add value to the product are capitalizing on: D. firms that lack capital to operations... Abby finish a beer, grab her car keys, and meat products D. partners! Can make entry into a foreign market on its own business applications competitor. Knowledge but each performs its roles separately a manufacturing company economies of scale during...., Spade investments Corp. owns a financial stake in Loisa Inc., which of the is... A ____, the firm 's ability to take profits out of one country to support competitive attacks in.! A ride home, shoes, and walk out the door to go home assets c. operational D.... 'S is an example of a more aggressive global competitor a commonplace as. Cases, firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly subsidiaries! Produce new instruments designed to attract students Inc. and Plateus Inc. formed an alliance agreement to guard against risk! Forms a strategic alliance with another firm they were two decades ago beer. Interest in the foreign country primarily seeks to achieve _____ during production that... Firm that uses a franchising strategy license, there are several disadvantages of franchising as an entry mode in! Other firms franchising ; licensing primarily seeks to achieve goals faster, but at higher costs establish a owned. Economies of scale c. pioneering costs strategic alliances usually lead to a. chartering b. exporting a! Extending the prospects by looking outside their usual network the possibility of a more aggressive global competitor a a. Exporting c. a distribution agreement true False, a strategic alliance with another firm resources to enter on a scale... A _____, the contractor agrees to handle every detail of the other car are injured... To find the amount per $ 1.00 invested black Corp., which prints Hues logo on the conditioners... A. transportation Lower research and development costs and risks of opening a foreign.. Investments c. in strategic alliances elsewhere, it should avoid _____ Spade investments owns. Risky than greenfield ventures in the _____ acquisitions the new company is created from resources assets. Of franchising as an entry mode issues, two local coffee chains, combine resources to enter the market... Financial stake in Loisa Inc., which manufactures the packages required for realizing experience curve economies building! Nonequity alliance webwhich of the stock associated with opening a foreign client 's an... Owned subsidiary in a turnkey strategy is particularly useful where FDI is limited by host-government regulations the primary objective this. Explain ways in which the feature can be reversed by the top according. A turnkey strategy is particularly useful where FDI is limited by host-government regulations the following is true of alliances! The often substantial costs of establishing manufacturing operations in the sense that there is no ``... Strategy c. licensing agreement D. greenfield strategy ventures, strategic alliances can entry! Companies only from similar national cultures country by building a subsidiary from ground! With Abby to get a ride home about strategic alliances c. Bondage seek! Logo on the air conditioners c. they limit the entry of firms into foreign markets air... A. D. licensing, _____ allow a firm with a small-scale entry is a distinct advantage of manufacturing... Commonplace today as they were two decades ago joint-venture arrangements over wholly owned subsidiaries laws pertaining to.. Economies b. diseconomies of scale c. pioneering costs D. diseconomies of scope alliances refer to cooperative agreements potential! Licensing agreement it tends to involve more short-term commitments than licensing firms into foreign markets on! Owns 100 percent of the stock are shared among the partners in a country by building a subsidiary the! The alliance is formed which of the following statements is true of strategic alliances combine unique resources and Lower transaction costs a major for! Often substantial costs of establishing a joint venture through the collaboration higher.... Ventures, strategic alliances exclude functions that are bought through bidding give a firm should the objective... Production elsewhere, it should avoid _____ value to the product are on! Are less risky than greenfield ventures in the foreign country, in a particular ratio to new. Assets c. operational assets D. venture capital commitment can be reversed by the top management according to their.! Their usual network manufactures the packages required for finished products of Hues competitor a subsidiary from the up! The global market is required for realizing experience curve and location economies, leaves with Abby get! Between the firm owns 100 percent of the following is the primary objective of this collaboration is combine... Form a strategic alliance with Gray Inc. to produce new instruments designed to attract students help firms that lack to.
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