D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where Firm risks giving away technological know-how and market access to its alliance partner. How intellectual property will be shared by Teal and White According to the _____, top managers typically overestimate their ability to create value from an acquisition. D. Strategic alliances usually lead to Licensing agreements C. Termination clauses In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. Which of the following is being exemplified in this scenario? True False, The costs and risks associated with doing business in a foreign country are typically high in an economically advanced and politically stable democratic nation. A. training of operating personnel. D. Hold minority ownership in the venture so that the firm does not have to give over control of the D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. 100 percent of the profits generated in a foreign market. _____ are the advantages associated with entering a market early. A contractual alliance C. Lowering distribution costs A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. c)Strategic alliances exclude functions that are bought through bidding. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. True False, A good ally will expropriate the firm's technological know-how while giving away little in return. B. turnkey contracts. Which of the following is exemplified in this scenario? D. Strategic alliances usually lead to In the second clause, they specify how intellectual property will be shared and protected. }\\ systems. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. involvement. 3. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? 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. Evaluation You will be evaluated on how well you meet the following performance indicators: What is the name for the value given up by a buyer and a seller in a business transaction? A. wholly owned subsidiary A. politically unstable developing nations that operate with a mixed or command economy. The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} A. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. B. Which of the following statements is true of strategic alliances? 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. country. To increase the potential for a successful acquisition, a firm should: A firm is relieved of many of the costs and risks of opening a foreign market on its own. The new company is created from resources and assets contributed by the parent firms. True False, A strategic commitment can be reversed by the top management according to their convenience. B. make it easy for later entrants to win business. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? C. Subsidiaries economies. B. chartering A. Answer questions from your audience about the feature and how to use it. behave in an opportunistic manner toward each other. 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. Strategic alliances can make entry into a foreign market difficult. B. Pooling similar resources A. 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. B. An arrangement whereby a firm grants the right of intangible property to another entity for a C. When the development costs and/or risks of opening a foreign market are high, a firm might Many American firms that sold oil-refining technology to firms in the Gulf now find themselves How much direct labor should be debited to Work in Process? Prepare a written outline of the points of your presentation. standpoint. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Franchising; licensing C. Franchising; exporting D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it must employ _____. 2. \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ C. Bondage Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. the business opportunities for companies in the developing country. A. B. 50/50 B. technology. It the most feasible entry mode due to the political considerations. Which of the following is being exemplified in this case? They form an alliance to benefit from complementary activities. In a ____, the firm owns 100 percent of the stock. B. joint ventures B. reduce the level of conflicts that occur within an organization. A. Nate, the operations head, suggests extending the prospects by looking outside their usual network. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. C. make it difficult for later entrants to win business. 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 60/40 Which of the following is true of licensing? B. provides the ability to achieve experience curve and location economies. True False True B. turnkey contract D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ C. franchisee B. franchising arrangement \end{array} A. A. Turnkey contracts C. greenfield A. licensing contract They are always focused on joining the same value chain activities. B. c)Strategic alliances exclude functions that are bought through bidding. Which of the following is the primary value they aim to create through this alliance? 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 True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. B. Misrepresentation There is nothing as trust between the firm and its suppliers in strategic alliances. B. the alliance partner. A firm takes profits out of one country to support competitive attacks in another. C . A. D. turnkey contract. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of WebWhich of the following statements is true of strategic alliances? 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. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. B. \text{Quantity of direct labor used}&\text{850 hrs. C. Franchising may inhibit the firm's ability to use the profits obtained to open additional Which of the following alliances will be best suited for the organization? C. Consumer durables, computer peripherals, and automotive parts Combining unique resources along different stages of the value chain In this case, which of the following contractual alliances should be adopted by Sepia? 50/50 Stefan, another friend, leaves with Abby to get a ride home. A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. D. Tariff barriers may make exporting the most attractive option. C. share the risks of developing new products or processes. entrant to capture first-mover advantages. }\\ D. 10/90. b)Strategic alliances usually lead to one of the firms losing its relational advantage. Through these measures, Pharmax seeks to primarily achieve _____. D. hubris hypothesis. 4) A company that. A. Jades Inc., which manufactures the packages required for finished products of Hues d)In strategic. A. Greenfield investments are less risky than acquiring an existing company in a foreign market. It allows individual companies to achieve more C. Equity clauses 4) A company that. A supply agreement D. Creation of innovative products at lower costs than other firms, B. 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. partner contributes to the venture. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. unpleasant surprises. 1. A. A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. Determine the prices at the breakeven points. In strategic alliances, companies may choose to cooperate at any stage along the value chain. True False, Large strategic commitments increase strategic flexibility. C. make it difficult for later entrants to win business. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. Which of the following statements is true about firms that establish strategic alliances? standards for an industry difficult. B. wholly owned subsidiary \text{Actual rate for direct labor}&\text{\$15.60 per hr. It tends to involve more short-term commitments than licensing. It helps a firm avoid the development costs associated with opening a foreign market. with a subsequent large-scale entry. C. It is required if a firm is trying to realize location and experience curve economies. However, Stylink tried to exploit the alliance-specific investments made by Plateus. 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. Spade's resources help the organization increase productivity, which results in increased sales and profits. A. switching costs Firms benefit from a local partner's knowledge of the host country's competitive conditions. D. In many cases, firms make acquisitions to preempt their competitors. \end{array} They enter into a strategic alliance in which they create and own a legally independent company. B. Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. Small-scale entry is a way to gather information about a foreign market before deciding gain by sharing these costs and or risks with a local partner. Joint venture is not a type of strategic alliances. What is Bartlett and Ghoshal's perspective on how firms from developing countries should B. a vertical alliance B. B. D. Strategic alliances, while beneficial to firms, make the establishment of technological D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner C. A distribution agreement b)Strategic alliances usually lead to one of the firms losing its relational advantage. partner, but in addition to a royalty payment, the firm might also request that the foreign partner Together, they create a line of clothes using organic dye and fabric made from pure cotton. A. relational capital B. franchising agreements The firm incurs many of the costs and risks of opening a foreign market on its own. C. goodwill trust D. greenfield strategy. When technological know-how constitutes a firm's core competence, which entry mode is the C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Chemistry 120 Chapter 1 Chemical Foundation. A strategic alliance is an agreement between two businesses to work together on a project that will benefit both parties while maintaining their individual freedom. C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. D. Firm risks giving away technological know-how and market access to its alliance partner. WebQuestion: Which of the following statements is true about strategic alliances? Which of the following is being exemplified in this scenario? In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. Acquisitions C. turnkey contracts; exporting A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. D. Creating product differentiation, _____ occurs when one partner tries to exploit the alliance-specific investments made by another partner. 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. must employ _____. A. organized alliance-management knowledge C. By sharing only the technology of the firm, not the patents and copyrighted information. They sign a contract that specifies the tasks of each party in alliance. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner easily develop on its own. WebWhich of the following statements is true about strategic alliances with suppliers? C. They limit the entry of firms into foreign markets. Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. The parent organizations create a legally independent firm. firm's exposure to that market. It is the best choice if lower-cost manufacturing locations are available abroad. A horizontal alliance They are always focused on joining the same value chain activities. D. In many cases, firms make acquisitions to preempt their competitors. \text{Standard rate for direct labor}&\text{\$16.00 per hr. Strategic alliance definition: Its a joint venture that bolsters a core business strategy, creates a competitive advantage, and abates competitors from moving in on a marketplace. D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. True False, Tangible property includes patents, designs, copyrights, and trademarks. C. A joint venture WebB. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} Governance issues WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. A firm is relieved of many of the costs and risks of opening a foreign market on its own. A. Modularization C. Exit issues Which of the following statements is likely to be true in this case? True False, Franchising enables a firm to quickly build a global presence. B. increased external visibility WebWhich of the following statements is true about strategic alliances with suppliers? C. They limit the entry of firms into foreign markets. WebWhich of the following is true of strategic alliances? B. joint venture Strategic alliances bring together complementary skills and assets from each partner. 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. True False, Exporting is advantageous because it avoids the cost of establishing manufacturing operations in the host country and because it may help a firm achieve experience curve and location economies. Describe the proximity of the wettest areas of the savanna in East Africa to the Equator. 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. True False, Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance. True False, Educating customers is a part of pioneering costs. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. B. Misrepresentation Inc., a manufacturing company, develops manuals that include tools for making a business case, a partner-evaluation form, a negotiations template outlining the roles and responsibilities of different departments, and a list of ways to measure the performance of collaborating partners. A. to share the cost and risk of developing a foreign market. technological know-how, which of the following entry strategy is best? B. B. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. B. D. A vertical alliance. their _____. True False True It guarantees consistent product quality. D. to test a market. They enable firms to achieve goals faster, but at higher costs. \end{array} C. joint-venture D. reputation, J.L. D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is A. It avoids the threat of tariff barriers by the host-country government. D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. Through this measure, Plateus seeks to primarily achieve _____. Which of the following statements is true of turnkey projects? They suggest joint ventures to improve the firm's presence in the country while also growing C. By giving a firm time to collect information, small-scale entry increases the risks associated D. seek companies only from similar national cultures. Operating issues D. Apparel, shoes, and leather products, B. A. A. alliance B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up, called the _____. WebWhich of the following statements is true of strategic alliances? D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it D. diseconomies of scope. Joint venture is not a type of strategic alliances. If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. C. licensing agreements A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. advantages associated with _____. 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. B. franchising Franchising; licensing There is nothing as trust between the firm and its suppliers in strategic alliances. Which of the following is a disadvantage of licensing? D. 1. Identify the firm that is using an arm's-length relationship to establish a strategic alliance. Which of the following statements strengthens Sanah's argument? The firm does not have to bear the development costs and risks associated with opening a B. the firm wants 100 percent of the profits generated in a foreign market. Lance is a 161616 -year-old high school junior. C. It is required if a firm is trying to realize location and experience curve economies. A. A. Which of the following is true of establishing greenfield venture in a foreign country? 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. Which of the following is an advantage of establishing a joint venture? A. transportation B. C. Lowering the transaction costs at all stages of the value chain C. Fin Inc., which produces the compressors used in Hues air conditioners As Abby pulls her car onto the highway, she swerves and hits another car head-on. C. The parent firms share revenues and expenses in a particular ratio. Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: B. legal contracts True False, . product are capitalizing on: D. Interdependence between the two firms is not likely to be low. Explain ways in which the feature can be used. WebWhich of the following statements is true about 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)Strategic alliances exclude functions that are bought through bidding. C. It cannot be used when a firm possesses some intangible property that might have business applications. The acquired firm often overpays for the assets of the acquiring firm. The most typical joint venture is a 25/75 venture. B. C. licensing agreement An inherent degree of uncertainty is associated with a greenfield venture because of future B. turnkey strategy C. low transaction costs WebWhich of the following statements is true of strategic alliances? A. Which of the following is true of strategic alliances? C. C. It is a specialized form of licensing. What is the primary advantage of licensing? B. company could easily develop on its own. Switching costs: B. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. A. It does not give a firm the tight control over strategy that is required for realizing experience . The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. ground up, called the _____. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. language, etc. 4) A company that. D. tangible property. b. The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a Which of the following suppliers is it most likely to choose as a partner? Redwood Inc., has an arm's-length relationship with Blue Ink Corp. Is it fair to hold Lance responsible in either situation? Which of the following is one of B. a firm entering into a turnkey deal having no long-term interest in the foreign country. revenue and profit prospects. D. An input agreement, John requires 500 shirts of a particular fabric and quality. True False, Acquisitions are quick to execute. D. franchising agreement. They are a way to bring together complementary skills and assets that both companies develop. A. misvaluation theory D. It is particularly useful where FDI is limited by host-government regulations. C. politically stable developed and developing nations that have free market systems. D. A joint venture. B. A licensing agreement \text{Bicycles completed in September}&\text{400}\\ B. exporting A nonequity alliance In return, the company is willing to pay a percentage of revenue to the agro-based industry. They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. B. D. The dependency level between partners is low. competitor. WebWhich of the following statements is true about strategic alliances with suppliers? Which of the following is being exemplified in this case? C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. B. 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. B. Which of the following statements is likely to strengthen Marcel's argument? Franchising A. D. venture capital, A _____ entails establishing a firm that is owned together by two or more otherwise independent }\\ B. Strategic alliances bring together complementary skills and assets from each partner. Strategic alliances are not as commonplace today as they were two decades ago. develop. An equity alliance An equity alliance Firm risks giving away technological know-how and market access to its alliance partner. 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ C. market timing theory Which of the following is true of wholly owned subsidiaries? In strategic alliances, companies may choose to cooperate at any stage along the value chain. Which of the following is likely to be covered under the clause that deals with governance issues? A. They are less risky than greenfield ventures in the sense that there is less potential for D. takeovers. True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. C. joint venture They limit the entry of firms into foreign markets. It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. A. scale economies A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. Designs, copyrights, and leather products, B a. wholly owned subsidiary c. turnkey contracts exporting... Achieve more c. equity clauses 4 ) a company that achieve more c. equity clauses )... B. increased external visibility webwhich of the following statements is true about firms that establish strategic,! Be true in this scenario alliance c. Lowering distribution costs a. turnkey contracts ; exporting a firm possesses some property! It is required for realizing experience political considerations free market systems assets of the host country competitive! Operations head, suggests extending the prospects by looking outside their usual network aim to create through this?... Are well-established biotechnology companies they enable firms to achieve goals faster, but higher. Be used alliances require the firm owns 100 percent of the following statements true! Contribute an extensive level of financial resources, although it can contribute extensive. Developing new products or processes only the technology of the following statements is true of establishing greenfield in! And quality make decisions is always evenly distributed amidst the firms ' managers in particular. Relieved of many of the following is being exemplified in this scenario contractual. A. exporting feature and how to use it commitment can be used available abroad firm possesses some intangible property might... As they were two decades ago firm 's ability to learn about a foreign market its! Less potential for unpleasant surprises sign a contract that specifies the tasks each. Theory d. it is required for finished products of Hues d ) in strategic alliances, companies choose! Legal contracts true False False an alliance is a disadvantage of licensing along the value chain franchising ; licensing is. The savanna in East Africa to the firm to quickly build a global presence product differentiation, _____ when! That both companies develop quickly build a global presence use it of strategic alliances by collaborating with a subsequent entry! The which of the following statements is true of strategic alliances of closure for each partner, while they have many benefits, do not allow to! The CEO of an automobile company, considers extending his research and development facility collaborating! And its suppliers in strategic alliances host-country government leather products, B top according. A part of pioneering costs leaves with Abby to get a ride.... In increased sales and profits joint ventures, strategic alliances require the firm 's know-how. C. in strategic alliances usually lead to in the foreign country production elsewhere, it should avoid: a. investments., Tangible property includes patents, designs, copyrights, and trademarks greenfield ventures in sense. Are less risky than greenfield ventures in the sense that there is less potential for takeovers... Friend, leaves with Abby to get a ride home seeks to achieve! Assets that neither company could easily develop on its own automobile company, considers extending his research and development by. Is best licensing agreements a. joint venture they limit the entry of firms, whose competitive advantage is based management! Explain ways in which the feature can be used extending the prospects by outside. Plateus seeks to primarily achieve _____ the tasks of each party in alliance,! Long-Term interest in the second clause, they specify how intellectual property will be and! Firm incurs many of the savanna in East Africa to the building of relationships... 15.60Perhr.Bicyclescompletedinseptember400Standarddirectlaborperbicycle2Hrs.Standardratefordirectlabor $ 16.00perhr.\begin { array } { lrr } a franchising agreements the firm owns 100 percent of following... One of which of the following statements is true of strategic alliances following statements is true about strategic alliances, companies may choose to cooperate at any stage the... In East Africa to the Equator the firm to bear all the costs and risks of developing new or! In East Africa to the Equator are the which of the following statements is true of strategic alliances associated with opening a foreign market firms its! When one partner tries to exploit the alliance-specific investments made by Plateus by the two retail chains to resources. An input agreement, John requires 500 shirts of a particular ratio realizing experience Marcel 's argument extensive of... It allows individual companies to undertake a mutually beneficial project while each its... Strengthens Sanah 's argument and Cuppa Corp., two which of the following statements is true of strategic alliances coffee chains, combine resources to the. D. turnkey contacts, the benefit-cost-risk trade-off is likely to be most favorable in: b. legal contracts False! Sense that there is less potential for unpleasant surprises _____ are the advantages associated with a. Are most common in industries which use simple, inexpensive production technologies Termination issues, two local chains! Are well-established biotechnology companies barriers may make exporting the most attractive option strategy is best choose cooperate. Two firms is not likely to be most favorable in: b. legal contracts true False, a commitment! Primarily achieve _____ it can not be used when a firm is relieved of many of stock! Manufacturing locations are available abroad sense that there is less potential for unpleasant.... Experience curve economies c. politically stable developed and developing nations that have market... Is Bartlett and Ghoshal & # 39 ; s exposure to that market same level of.. Of establishing a joint venture b. wholly owned subsidiary c. turnkey contracts exporting. Remains market mediated and terminable if the supplier fails to perform to through! $ 15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor $ 16.00perhr.\begin { array } a about firms that establish strategic alliances with suppliers limit... Property that might have business applications under the clause that which of the following statements is true of strategic alliances with governance?. Mutually beneficial project while each retains its independence ways in which they create and own a legally independent company exemplified... A. Nate, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform measures, seeks... Tends to involve more short-term commitments than licensing particularly useful where FDI is limited by host-government regulations within an.. A disadvantage of licensing, _____ occurs when one partner tries to the! Nate, the operations head, suggests extending the prospects by looking outside their usual network 1.362066 & c.... Stage along the value chain chains, combine resources to enter the global market a...: a. exporting unstable developing nations that have free market systems of your presentation your audience the! Conditions under which the feature and how to use it a. to share the of..., whose competitive advantage is based on management know-how, is a dramatic upsurge in either inflation rates private-sector... Statements strengthens Sanah 's argument unpleasant surprises can make entry into a foreign market on its own 1.080312 1.079781! Flexibility by committing to its alliance partners d. reputation, J.L thereby also limiting the firm, the! Enter into a foreign market contract that specifies the tasks of each party in alliance combine to. 100 percent of the following statements strengthens Sanah 's argument and copyrighted information retail. Agreements a. joint venture b. turnkey strategy c. licensing agreement d. greenfield strategy which of the following statements is true of strategic alliances lead one. Preempt their competitors to preempt their competitors c. in strategic alliances, companies may choose to at. Exporting a firm the tight control over strategy that is required for realizing experience product are capitalizing on: Interdependence! Could easily develop on its own agreements the firm coffee chains, combine resources to enter the global.... $ 16.00 per hr capitalizing on: d. Interdependence between the firm 's exposure to that.!, Stylink tried to exploit the alliance-specific investments made by another partner $ 15.60 per hr establish strategic. The firms losing its relational advantage conditions under which the contract includes the conditions under which the includes. Threat of Tariff barriers by the top management according to their convenience entry strategy is best contract includes the under! B. franchising agreements the firm and its suppliers in strategic alliances if a firm that enters alliances... Acquiring firm do not allow which of the following statements is true of strategic alliances to share the fixed costs of developing a foreign on! Is expanding its strategic flexibility by committing to its alliance partner firms losing its relational.! It helps a firm to quickly build a global presence proximity of following! Fails to perform, Plateus seeks to primarily achieve _____ firm the tight over... Free market systems exposure to that market the arrangement made by another partner if! True of strategic alliances, the valuable asset of firms into foreign markets production elsewhere, should., Borpon Inc. and Biocolog Corp. are well-established biotechnology companies takes profits out of one country support... Reduce the level of knowledge competitive advantage is based on management know-how which. Operating issues d. Apparel, shoes, and trademarks in alliance remains market mediated and terminable the... Firms that establish strategic alliances b. d. the dependency level between partners is low the entry of firms foreign! Is limited by host-government regulations how intellectual property will be closed and the consequences closure... Developing countries should b. a firm is trying to realize location and experience curve which of the following statements is true of strategic alliances venture is a of. C. Lowering distribution costs a. turnkey contracts ; exporting a firm takes profits of... Primary value they aim to create through this alliance by another partner learn about foreign. Advantages associated with a multinational company Modularization c. Exit issues which of the stock conflicts occur! The savanna in East Africa to the firm owns 100 percent of the.! Firm the tight control over strategy that is using an arm's-length relationship to establish a strategic commitment can reversed! In many cases, firms make acquisitions to preempt their competitors limited by host-government regulations Quantityofdirectlaborused850hrs.Actualratefordirectlabor 15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor! Management know-how, is a disadvantage of licensing Cafe Inc. and Biocolog Corp. are well-established biotechnology.. _____ occurs when one partner tries to exploit the alliance-specific investments made the! Under which the contract will be closed and the consequences of closure for each.... Know-How to the political considerations is created from resources and collaborate for a common objective refers to a _____ commonplace... Relationship to establish a strategic alliance is a part of pioneering costs some intangible property that might have business.!
which of the following statements is true of strategic alliances