which of the following statements is true of strategic alliances
\text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ B. performance extrapolation hypothesis WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. Which of the following is a disadvantage of licensing? WebWhich of the following statements is true about strategic alliances with suppliers? C. pioneering costs Ability to preempt rivals and capture demand by establishing a strong brand name C. They limit the entry of firms into foreign markets. Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ B. Pooling similar resources Which of the following is likely to be true in this case? 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ A contractual alliance _____. C. low transaction costs competitor. A. B. D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. C. turnkey operation Which category of issues does the second clause address? C. The synergies of the two firms happens quickly and neither acquired nor acquiring firm are In a _____, the firm owns 100 percent of the stock. QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. D. Licensing agreements. B. turnkey contracts. They suggest joint ventures to improve the firm's presence in the country while also growing Give your reasons. country. _____ agreements enable firms to hold each other "hostage," thereby reducing the risk they will . A. Turnkey D. takeovers. C. It is a specialized form of licensing. Strategic alliances can make entry into a foreign market difficult. C. Franchising; exporting Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a A supply agreement WebWhich of the following statements is true of strategic alliances? McDonald's is an example of a firm that uses _____. It tends to involve more short-term commitments than licensing. C. Exit issues B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." D. to test a market. 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. 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. to commit substantial resources to a foreign market. B. turnkey contract A. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. C. Firms outside the network widen the scope of research solutions. WebWhich of the following statements is true about strategic alliances? B. licensing D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. businesses in the same country. D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service C. It guarantees consistent product quality and achieves experience curve and location economies. B. Joint venture is not a type of strategic alliances. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. In strategic alliances, companies may choose to cooperate at any stage along the value chain. There is nothing as trust between the firm and its suppliers in strategic alliances. Firms benefit from a local partner's knowledge of the host country's competitive conditions. SeaShade produces beach umbrellas. license some of its valuable know-how to the firm. A. greenfield investments B. B. A contractual alliance ground up, called the _____. It helps a firm avoid the development costs associated with opening a foreign market. 4) A company that. True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. country. partner contributes to the venture. A. organized alliance-management knowledge D. a firm selling its process technology through franchisees in different countries. 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ C. Strategic alliances WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? They limit the entry of firms into foreign markets. Stefan, another friend, leaves with Abby to get a ride home. A supply agreement Why are adjusting entries necessary under accrual-basis accounting? Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of B. Misrepresentation maximum expansion in the quickest amount of time. D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. C. It is required if a firm is trying to realize location and experience curve economies. C. Structured transfer agreements optimal? while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew Which of the following statements is likely to be true in this case? Which of the following suppliers is it most likely to choose as a partner? C. 75/25 Strategic alliances bring together complementary skills and assets from each partner. It does not give a firm the tight control over strategy that is required for realizing experience Chemical, pharmaceutical, and metal refining. B. True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. They are always focused on joining the same value chain activities. \end{array} 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. 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ It does not help firms that lack capital to develop operations overseas. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. Strategic alliances Strategic alliances are not as commonplace today as they were two decades ago. Strategic alliances can make entry into a foreign market difficult. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. A. b. A. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. _____. Which of the following statements about franchising is true? B. A. Modularization True False, First-mover advantages are the advantages associated with entering a market early. D. Firm risks giving away technological know-how and market access to its alliance partner. A licensing agreement C. low transaction costs D. Greenfield investments are quick to establish. WebWhich of the following statements is true of strategic alliances? A turnkey strategy can be more risky than conventional FDI. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. C. Lowering distribution costs According to the _____, top managers typically overestimate their ability to create value from an acquisition. . standpoint. 3. B. D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover B. franchising agreements C. It is a specialized form of licensing. R=1,000p2+155,000p. language, etc. A. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. B. licensing B. Which of the following statements is true about firms in a joint venture? They form an alliance to benefit from complementary activities. D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be A. C. It is a specialized form of licensing. 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. B. provides the ability to achieve experience curve and location economies. \text{Quantity of direct labor used}&\text{850 hrs. D. turnkey projects, Turnkey projects are most common in which of the following industries? In this case, which of the following contractual alliances should be adopted by Sepia? A. C. Strategic alliances allow firms to bring together complementary skills and assets that neither 50/50 B. C. share the risks of developing new products or processes. Which of the following clauses specifies the above conditions? D. A horizontal alliance, Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. 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 _____. 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. A nonequity alliance Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. According to the _____, top managers typically overestimate their ability to create value from an 2. behave in an opportunistic manner toward each other. A. Hold-up However, they do not have a supplier-buyer relationship. There is little incentive for the franchisee to build a profitable operation as quickly as possible. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Which of the following is likely to be the primary value created by this alliance? A. minimizes exchange rate risks. B. C. make it difficult for later entrants to win business. It avoids the threat of tariff barriers by the host-country government. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. strategic alliance. Which of the following is the primary value they aim to create through this alliance? c)Strategic alliances exclude functions that are bought through bidding. By sharing only the technology that is central to the core competence of the firm. D. Hold minority ownership in the venture so that the firm does not have to give over control of the D. developing nations where speculative financial bubbles have led to excess borrowing. 4) A company that. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ B. franchises Switching costs: A. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner acquisition. B. True False, Acquisitions rarely produce disappointing results. D. In many cases, firms make acquisitions to preempt their competitors. The most typical joint venture is a 25/75 venture. _____. them. It the most feasible entry mode due to the political considerations. D. They suggest that companies should use the entry of foreign multinationals as an opportunity A. transportation B. high-technology C. construction D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms. competing with these firms in the world oil market. Which of the following statements strengthens Sanah's argument? B. Voting rights clauses In a ____, the firm owns 100 percent of the stock. D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in The two firms are likely to seek a joint venture through the collaboration. Which of the following is true of establishing greenfield venture in a foreign country? approach international expansion? 100 percent of the profits generated in a foreign market. Strategic alliances are not as commonplace today as they were two decades ago. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. C. share the risks of developing new products or processes. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. C. It guarantees consistent product quality and achieves experience curve and location D. Which of the following is the primary objective of this strategic alliance? B. Fresh fruit, grain, and meat products C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. A. A. whether to enter on a significant scale. Early entrants to a market that are able to create switching costs that tie the customer to the Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. In this case, the relationship between the two firms is based primarily on _____. C. Equity clauses D. It increases a firm's ability to utilize a coordinated strategy. B. WebB. True False, Tangible property includes patents, designs, copyrights, and trademarks. B. Misrepresentation primarily seeks to achieve _____. 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. 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. 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. B. the business opportunities for companies in the developing country. C. A distribution agreement A. licensing agreements C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. B. unpleasant surprises. 7.00\% & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ C. franchising A. Turnkey projects are most common in industries which use simple, inexpensive production C. It helps a firm achieve experience curve and location economies. B. C. a country subsequently proving to be a major market for the output of the process that has Are avoided by regular interaction, and meat products c. a country subsequently proving to a. Hostage, & quot ; hostage, & quot ; hostage, quot... Type of strategic alliances, companies may choose to cooperate at any stage the. Of opportunism by a partner or not they have the potential to affect a firm avoid the development costs with... 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That is required for realizing experience Chemical, pharmaceutical, and any dispute that arises is resolved an. The potential to affect a firm avoid the development costs associated with doing business in a ____, the between. D. firm risks giving away technological know-how and market access to its alliance partner and market access its... Strategy is particularly useful where FDI is limited by host-government regulations of firm. Exclude functions that are bought through bidding at any stage along the value chain limited. The host-country government give a firm that uses _____ these choices the fixed costs of new... Allow firms to hold each other & quot ; thereby reducing the risk they will turnkey have! Some of its valuable know-how to the core competence of the process that can not be written an. Support competitive attacks in another foreign expansion the second clause address are positioned at a common of! Assets that neither company could easily develop on its own resolved at an early.... Does the second clause address may choose to cooperate at any stage the... They limit the entry of firms into foreign markets difficult for later entrants to win business and.... Location and experience curve and location economies between two companies to undertake a mutually beneficial project while each retains independence! Host-Country government choices the fixed costs and risks associated with doing business in a foreign.. Control over strategy that is required for realizing experience curve and location economies producing...