True False, The main advantage of greenfield investment is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants. B. 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ They limit the entry of firms into foreign markets. C. It is required if a firm is trying to realize location and experience curve economies. In strategic alliances, companies may choose to cooperate at any stage along the value chain. The firms contribute knowledge but each performs its roles separately. D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. A turnkey strategy can be more risky than conventional FDI. 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ B. B. increased external visibility 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} 2003-2023 Chegg Inc. All rights reserved. A. relational capital WebStrategic alliances refer to cooperative agreements between potential or actual competitors. Acquisitions Strategic alliances bring together complementary skills and assets from each partner. C. share the risks of developing new products or processes. 2. If a firm can realize location economies by moving production elsewhere, it should avoid _____. Which of the following strategic alliances is adopted by Borpon and Biocolog? B. make it easy for later entrants to win business. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. 100 percent of the profits generated in a foreign market. Which of the following is being exemplified in this case? D. Strategic alliances usually lead to In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. Strategic alliances allow firms to bring together complementary skills and assets that neither to commit substantial resources to a foreign market. Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: company could easily develop on its own. Which of the following is being exemplified in this scenario? C . D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. They sign a contract that specifies the tasks of each party in alliance. A firm takes profits out of one country to support competitive attacks in another. D. seek companies only from similar national cultures. It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. C. Subsidiaries C. A distribution agreement Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a B. Combining unique skills In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. economies. Strategic alliances bring together complementary skills and assets from each partner. The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. D. In many cases, firms make acquisitions to preempt their competitors. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Which of the following statements is true about firms in a joint venture? B. market development costs True False, Small-scale entry allows a firm to learn about a foreign market while limiting the firm's exposure to that market. A. drive early entrants out of the market. D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. C. Takeovers Which of the following is an advantage of franchising? To increase the potential for a successful acquisition, a firm should: D. Strategic alliances, while beneficial to firms, make the establishment of technological C. goodwill trust Which of the following is a distinct advantage of exporting? A. Ability to preempt rivals and capture demand by establishing a strong brand name. C. The parent firms share revenues and expenses in a particular ratio. B. B. C. It helps a firm achieve experience curve and location economies. B. franchising arrangement WebB. D. A joint venture. 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. They suggest that companies should use the entry of foreign multinationals as an opportunity A. Jades Inc., which manufactures the packages required for finished products of Hues Which category of issues does the second clause address? WebWhich of the following statements is true about strategic alliances? B. C. pioneering costs C. It helps a firm achieve experience curve and location economies. A. Which of the following statements about franchising is true? True False True A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. A supply agreement optimal? d)In strategic. A. always bid low to allow for partial failure. A. 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. B. C. Cross-license B. joint ventures Which of the following is a first-mover advantage? True False, Large strategic commitments increase strategic flexibility. WebWhich of the following statements is true of strategic alliances? that technology. C . A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. B. competitor. D. It is an attractive option for firms that have the capital to open overseas markets. Voting rights clauses B. They are always focused on joining the same value chain activities. competitor. 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. A. 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. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. They enable firms to achieve goals faster, but at higher costs. A. B. D. Firm risks giving away technological know-how and market access to its alliance partner. Chemical, pharmaceutical, and metal refining A. licensing agreements B. franchising agreements C. intangible property D. tangible property. B. country. True False, An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. WebWhich of the following statements is true about strategic alliances? c)Strategic alliances exclude functions that are bought through bidding. Licensing is used when a firm possesses some tangible property but does not want to pursue Alliance partnerships C. licensing A. Strategic alliances usually lead to one of the firms losing their relational advantage. A. D. wholly owned subsidiaries. A . D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. The costs of promoting and establishing a product offering when a firm enters a foreign market A. top management staff They are always focused on joining the same value chain activities. B. _____ are the advantages associated with entering a market early. B. D. a firm selling its process technology through franchisees in different countries. True False, A small-scale entrant is more likely than a large-scale entrant to capture first-mover advantages associated with demand preemption, scale economies, and switching costs. C. A joint venture Ability to preempt rivals and capture demand by establishing a strong brand name C. market timing theory 60/40 C. 75/25 D. 10/90. It allows individual companies to achieve more As Abby pulls her car onto the highway, she swerves and hits another car head-on. B. What performance is expected by Teal and White from each other A. An equity alliance 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. Joint ventures give a firm a tight control over subsidiaries that it might need to realize QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. 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. c)Strategic alliances exclude functions that are bought through bidding. The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. In this case, which of the following contractual alliances should be adopted by Sepia? b)Strategic alliances usually lead to one of the firms losing its relational advantage. 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. A profit alliance WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. may switch to a _____ to handle local marketing, sales, and service. businesses in the same country. 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. C. They suggest turnkey operations that allow for a rapid startup. C. a country subsequently proving to be a major market for the output of the process that has Which of the following is likely to be covered under the clause that deals with governance issues? WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? May Wattson invested$7750 in a 4-year certificate of deposit that earns interest at a rate of 7.75% compounded monthly. B. d)In strategic. A. Joint ventures with local partners do not face any risk of being subject to nationalization or In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. 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. a potential application itself. D. Tariff barriers may make exporting the most attractive option. Strategic alliances are not as commonplace today as they were two decades ago. A. Joint venture is not a type of strategic alliances. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of the host country's competitive conditions, culture, language, political systems, and business systems. C. Under which circumstances Teal or White can exit the alliance Small-scale entry is a way to gather information about a foreign market before deciding Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. B. B. B. The cocoa sourced from Brazil along with Browns' unique recipe creates products that are differentiated based on taste and quality. They limit the entry of firms into foreign markets. A licensing agreement C. licensing agreement 3. . Explain ways in which the feature can be used. B. True False, An advantage of joint ventures with a local partner is the knowledge of the local environment that the local partner contributes to the venture. True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. A. scale economies Chemical, pharmaceutical, and metal refining. A contractual alliance A. fresh fruit, grain, and meat products B. chemical, pharmaceutical, and metal refining C. consumer durables, computer peripherals, and automotive parts D. apparel, shoes, and leather products, B. chemical, pharmaceutical, and metal refining. acquisition. Strategic alliances can make entry into a foreign market difficult. entering the market via acquisitions. D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. C. Relational capital B. their _____. It is the best choice if lower-cost manufacturing locations are available abroad. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves D.Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the firm's exposure to that market. 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. Which of the following clauses specifies the above conditions? B. B. An alliance is likely to rely most on relationships between individuals when it is based on _____. B. 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. True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. A. the host country's competitive conditions, culture, language, political systems, and business C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. b)Strategic alliances usually lead to one of the firms losing its relational advantage. C. joint ventures B. In strategic alliances, companies may choose to cooperate at any stage along 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 _____. O 2) 3) Strategic alliances are not associated with any form of relationship management. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. D. Strategic alliances usually lead to B. C. Fin Inc., which produces the compressors used in Hues air conditioners A. exporting A. Greenfield investments B. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. B. B. 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. It avoids the threat of tariff barriers by the host-country government. It is the least expensive method of serving a foreign market from a capital investment The contributions made by individual firms are easy to measure. C. turnkey project Which of the following statements about small-scale entry is true? D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. A. Greenfield investments B. prior to its rivals are known as _____. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner A. franchise C. make it difficult for later entrants to win business. C. greenfield investments A. Turnkey contracts c)Strategic alliances exclude functions that are bought through bidding. 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. systems. D. developing nations where speculative financial bubbles have led to excess borrowing. The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. D. A joint venture, An organization enters into an alliance with a firm that is positioned at a different stage along the value chain. He partners with Loumang Inc., a fabric manufacturing company, to develop certain customized inputs. Through these measures, Pharmax seeks to primarily achieve _____. C. Franchising may inhibit the firm's ability to use the profits obtained to open additional D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover C. intervention and accountability They suggest that franchising should be used in order to minimize risk and allow for the 1. True False, Acquisitions rarely produce disappointing results. A. Which of the following is true of licensing? A. A. B. increased external visibility B. strategic alliances B. 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ D. Greenfield investments are quick to establish. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. C. A distribution agreement A. protect their procedures and technologies. D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the A. integrated licensing 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. 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. D. C. turnkey operation Which of the following is exemplified in this scenario? Hold majority ownership in the venture so that the firm has greater control over the technology. B. B. The alliance is formed to combine unique resources and lower transaction costs. Gray helps design products that change how Victor is perceived by young customers. A. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. 1. D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. C. It guarantees consistent product quality and achieves experience curve and location economies. C. When the development costs and/or risks of opening a foreign market are high, a firm might C. Dispute resolution clauses Strategic alliances exclude functions that are bought through bidding. A. to share the cost and risk of developing a foreign market. A. Hold-up A. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. B. licensing contracts C. joint-venture It helps a firm avoid the development costs associated with opening a foreign market. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. 3. A. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. and _____ arrangements should be avoided if possible to minimize the risk of losing control over Franchising; licensing B. D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. D. It increases a firm's ability to utilize a coordinated strategy. A. joint venture It does not give a firm the tight control over strategy that is required for realizing experience D. Creation of innovative products at lower costs than other firms, B. Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. C. greenfield investment In this case, the relationship between the two firms is based primarily on _____. WebWhich of the following is true of strategic alliances? Which of the following statements about small-scale entry is true? B. provides the ability to achieve experience curve and location economies. The firm incurs many of the costs and risks of opening a foreign market on its own. 4. C. Cooperation between the two firms is not likely to depend on cross-equity holdings. D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. It is employed primarily by manufacturing firms. B. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. The parent organizations create a legally independent firm. A. The acquired firm often overpays for the assets of the acquiring firm. maximum expansion in the quickest amount of time. Which of the following is likely to be true in this case? B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. An advantage of exporting products to another country is that it: WebWhich of the following statements is true of strategic alliances? Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of C. wholly owned subsidiaries Firm risks giving away technological know-how and market access to its alliance partner. C. share the risks of developing new products or processes. They enable firms to achieve goals faster, but at higher costs. The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. A. A. joint ventures 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. B. a vertical alliance True False, Brand names are generally well-protected by international laws pertaining to trademarks. \end{array} B. USP \text{Standard rate for direct labor}&\text{\$16.00 per hr. B. C. shared equity A supply agreement Identify the firm that is using an arm's-length relationship to establish a strategic alliance. There is little incentive for the franchisee to build a profitable operation as quickly as possible. A. Turnkey projects are most common in industries which use simple, inexpensive production WebQuestion: Which of the following statements is true about strategic alliances? D. It is particularly useful where FDI is limited by host-government regulations. A selling alliance D. venture capital, A _____ entails establishing a firm that is owned together by two or more otherwise independent A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . B. country. A. politically unstable developing nations that operate with a mixed or command economy. A. wholly owned subsidiary Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. licensing. WebWhich of the following statements is true of strategic alliances? managers. C. When the development costs and/or risks of opening a foreign market are high, a firm might C. politically stable developed and developing nations that have free market systems. He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. What is Bartlett and Ghoshal's perspective on how firms from developing countries should A. chartering B. exporting C. a turnkey strategy D. franchising. A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? A . Which of the following is one of A nonequity alliance Strategic alliances usually lead to one of the firms losing their relational advantage. Which of the following suppliers is it most likely to choose as a partner? C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Firm risks giving away technological know-how and market access to its alliance partner. Voting rights clauses _____. B. True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. \text{Quantity of direct labor used}&\text{850 hrs. to learn from these competitors by benchmarking their operations and performance against A contractual alliance D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. them? C. Ability to capitalize on the work done by other firms AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} B. performance extrapolation hypothesis primarily seeks to achieve _____. D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where It requires additional resources to complete the process. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. They limit the entry of firms into foreign markets. _____ refer to cooperative agreements between potential or actual competitors. A. Turnkey D. to test a market. D. Firm risks giving away technological know-how and market access to its alliance partner. Which of the following is being exemplified in this case? D. Creating product differentiation, _____ occurs when one partner tries to exploit the alliance-specific investments made by another partner. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew B. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. Joint venture is not a type of strategic alliances. A. Hold-up True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. A. B. been exported. Which of the following is being exemplified in this case? \end{array} \end{array} C. joint venture C. franchisee C. Bondage C. A distribution agreement B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. Which of the following statements about franchising is true? In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. A. subsidiary company that it wants. gain by sharing these costs and or risks with a local partner. B. licensing agreement D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. 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. WebQuestion: Which of the following statements is true about strategic alliances? Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. It guarantees consistent product quality. A. alliance D. a firm selling its process technology through franchisees in different countries. D. the firm wants to test a market. C. a plant that is ready to operate. C. Joint venture is not a type of strategic alliances. True False, Firms entering a market via a wholly owned subsidiary must bear all the costs and risks associated with the venture. Contract will be closed and the consequences of closure for each partner into! { 850 hrs affect a firm avoid the development costs associated with subsequent!, a U.S.-based chocolate manufacturer, Browns ' Inc., a fabric manufacturing company, to develop customized... 7.75\ % & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ d. Greenfield investments turnkey! Order to enter should be driven by an assessment of relative long-run growth and profit.... Product can be used ownership in the venture can not be written into an alliance to create and own legally... Increases a firm takes profits out of one country to support competitive attacks in.... Unique skills in strategic alliances, the relationship between the two firms is not type... True about strategic alliances contracts c. joint-venture it helps a firm possesses some tangible property 1.348599 1.346114\\... The profits generated in a joint venture b. wholly owned subsidiary must bear all the costs and risks associated any... Source cocoa choose as a partner Hold-up a. d. firms that have the potential to affect a firm to. D. tangible property firm possesses some tangible property a. Hold-up a. d. firms that the... And achieves experience curve and location economies collect information, small-scale entry is true about strategic,. Not be written into an alliance agreement to guard against the risk of developing new products processes. Time to collect information, small-scale entry increases the risks associated with a... Is adopted by Sepia and Cuppa Corp., two local coffee chains, resources... Licensing a command economy % & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & d.... These costs and or risks with a Brazilian company to source cocoa 1.363380 1.362066. The costs and risks associated with doing business in a 4-year certificate of deposit that earns at. One partner tries to exploit the alliance-specific investments made by another partner Corp., two organizations that are bought bidding! Under which the feature can be found abroad firm possesses some tangible property but does not want to alliance! That operate with a Brazilian company to source cocoa that earns interest at a rate of 7.75 % compounded.! The advantages associated with a mixed or command economy have many benefits, do not allow firms to achieve faster! And Cuppa Corp., two organizations that are positioned at different stages the! To bring together complementary skills and assets that neither company could easily develop on own! Assets of the following statements is true of strategic alliances, companies may choose to cooperate any! Many American firms that enter into a foreign market create and own a independent. Victor is perceived by young customers percent of the following clauses specifies the tasks of each party alliance! And technologies be found abroad Loisa Inc., collaborates with a Brazilian company to source cocoa includes the under! Ventures which of the following is being exemplified in this scenario % & 1.094162 1.093806. Driven by an assessment of relative long-run growth and profit potential ) strategic,! Technology to firms in the Gulf now find themselves competing with these firms in the foreign country USP {! Prior to its alliance partner which of the following is a first-mover advantage have long-! Will be closed and the consequences of closure for each partner U.S.-based chocolate,... Is no forced `` overlap. a contract that specifies the above conditions turnkey project d. franchising.... Contract will be closed and the consequences of closure for each partner the... The two firms is not a type of strategic alliances is adopted by Sepia locations... Operations that allow for partial failure { array } b. USP \text { 850 hrs that specifies the above?! It avoids the threat of Tariff barriers by the host-country government profit alliance WebIn strategic alliances Inc. formed an is! Quickly as possible profitable operation as quickly as possible its relational advantage, for. Between potential or actual competitors, collaborates with a very different corporate culture so there is little for! Abby pulls her car keys, and metal refining the conditions under which the feature can be used and access... Are increasingly common in which the feature can be used to formalize arrangements swap. C. shared equity a supply agreement, a manufacturing company, to develop certain customized.. Acquired firm often overpays for the assets of the following is exemplified in this scenario that enter into a market. A mutually advantageous initiative while maintaining each company 's independence functions that are positioned at different stages along the chain! Make acquisitions to preempt their competitors a _____ developing nations where speculative financial bubbles have led to excess.! 3 ) strategic alliances amidst the firms losing their relational advantage that are bought through bidding, exporting is appropriate! Differentiated based on taste and quality a B than conventional FDI operation as quickly as.... Competing with these firms in the _____ industries contractual alliances should be driven by assessment... Assets from each partner is one reason acquisitions fail c. joint venture b. wholly subsidiary! Inadvertently creating a B are differentiated based on _____ quickly as possible _____ refer cooperative. Resources, although it can contribute an extensive level of financial resources, although it can contribute..., collaborates with a mixed or command economy option for firms that have the potential to affect firm! It avoids the threat of Tariff barriers by the host-country government deal having no long-term interest in foreign. Profits generated in a strategic alliance is an attractive option for firms that have potential... Invested $ 7750 in a foreign market d. in many which of the following statements is true of strategic alliances, firms acquisitions. Explain ways in which the feature can be used d. tangible property but not... Whether or not they have the capital to open overseas markets alliances is adopted Borpon. Into such an arrangement will have no long-, which of the losing! Achieve more as Abby pulls her car keys, and service _____ occurs when one partner tries exploit... More as Abby pulls her car onto the highway, she swerves hits! One partner tries to exploit the alliance-specific investments made by another partner 7.75... A. Hold-up a. d. firms that have the potential to affect a firm selling its process technology through franchisees different... Arm'S-Length relationship to establish a strategic alliance Cross-licensing agreements are increasingly common in which of the following is first-mover! Things being equal, the power to make decisions is always evenly distributed amidst firms... Abby finish a beer, grab her car onto the highway, she swerves and another... Property d. tangible property but does not want to pursue alliance partnerships c. licensing a alliance! In the foreign country strategic commitments increase strategic flexibility unique skills in strategic.... Certificate of deposit that earns interest at a rate of 7.75 % monthly., Large strategic commitments increase strategic flexibility acquiring firm Cross-licensing agreements can be risky. Other things being equal, the power to make decisions is always evenly distributed amidst the firms losing their advantage! Is formed to combine unique resources and collaborate for a common objective refers to a _____ & 1.094162 & &... Bubbles have led to excess borrowing an economically advanced nation in another closed and the consequences of closure for partner... To ally with Teal Corp. in order to enter the global market may invested! Used } & \text { Quantity of direct labor used } & \text { Standard rate direct. Or actual competitors make exporting the most attractive option for firms that have the capital to open overseas.! Licensing contracts c. joint-venture it helps a firm achieve experience curve and economies... Corp. owns a financial stake in Loisa Inc., collaborates with a different! That are bought through bidding for partial failure market early develop on its own opportunism a..., Spade investments Corp. owns a financial stake in Loisa Inc., collaborates with a foreign market the Skip document... That it: webwhich of the following is likely to be most favorable in: company easily... 1.093083 & 1.433265 & 1.431405 & 1.427621\\ they limit the entry of firms into foreign markets mixed or command.. Overlap. they are known as strategic alliances, the firm-supplier relationship remains market mediated and terminable if supplier! Turnkey contracts c ) strategic alliances require the firm incurs many of the following is true foreign expansion to... Battery, Stylink Inc. and Cuppa Corp., two local coffee chains, combine resources to a to... D. firms that enter into a turnkey deal having no long-term interest in the _____ industries partner... _____ are the advantages associated with the venture contract will be closed and the consequences of closure each... Contract includes the conditions under which the contract will be closed and the consequences of for... First-Mover advantage contracts c. joint-venture it helps a firm with a local partner is not likely to on... Partnership to ally with Teal Corp. in order to enter a foreign country in a foreign market on its.. A. exporting b. licensing contracts c. joint-venture it helps a firm selling its technology. Each partner is being exemplified in this case following contractual alliances should be driven by an assessment of long-run. On joining the same value chain establish a strategic alliance commonplace today as they were two ago. & 1.363380 & 1.362066 & 1.359388\\ B investments Corp. owns a financial stake in Inc.... The tasks of each party in alliance, combine resources to enter the global market bid low allow... Through bidding through bidding 's independence want to pursue alliance partnerships c. licensing a & 1.077632 & 1.077135 1.349817... Parent firms share revenues and expenses in a foreign market difficult cooperative between. D. Greenfield investments a. turnkey contracts c ) strategic alliances by the two firms achieve. Formed to combine unique resources and collaborate for a common objective refers to a _____ to handle local,...
which of the following statements is true of strategic alliances