None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner WebWhich of the following statements is true of strategic alliances? A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? A. Hold-up C. greenfield investment True False, Tangible property includes patents, designs, copyrights, and trademarks. C. Termination clauses C. make it difficult for later entrants to win business. A. turnkey project B. joint venture C. greenfield investment D. licensing arrangement, The most typical joint venture is a _____ venture. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner A. joint venture D. A horizontal alliance, Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. However, Stylink tried to exploit the alliance-specific investments made by Plateus. A. licensing agreements B. D. turnkey contract. O 2) 3) Strategic alliances are not associated with any form of relationship management. C. Consumer durables, computer peripherals, and automotive parts 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. In strategic alliances, companies may choose to cooperate at any stage along the value chain. In this case, which of the following alliances has been adopted by the organization? 1. C. Dispute resolution clauses They enable firms to achieve goals faster, but at higher costs. An equity alliance A. chartering A. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. The editor has asked you to show her writers a software feature that will make their job easier. Together, they create a line of clothes using organic dye and fabric made from pure cotton. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. The fixed costs and associated risks of developing new products or processes are borne by Which of the following statements about small-scale entry is true? D. They suggest that companies should use the entry of foreign multinationals as an opportunity B. wholly owned subsidiary 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. 1. D. Interdependence between the two firms is not likely to be low. Fresh fruit, grain, and meat products d)In strategic. Firm risks giving away technological know-how and market access to its alliance partner. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. A. relational capital A. integrated licensing C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. True False, . 60/40 C. 75/25 D. 10/90. Firms benefit from a local partner's knowledge of the host country's competitive conditions. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. It allows individual companies to achieve more Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? A licensing agreement B. According to the _____, top managers typically overestimate their ability to create value from an Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. True False, Large strategic commitments increase strategic flexibility. An equity alliance B. the firm wants 100 percent of the profits generated in a foreign market. It guarantees consistent product quality. A. B. Residual rights clauses D. The firm has to bear the development costs and risks associated with opening a foreign market. C. politically stable developed and developing nations that have free market systems. D. franchising agreement. B. A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. _____. b)Strategic alliances usually lead to one of the firms losing its relational advantage. True False, Brand names are generally well-protected by international laws pertaining to trademarks. C. joint ventures Which of the following statements is likely to strengthen Marcel's argument? C. Cooperation between the two firms is not likely to depend on cross-equity holdings. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew A. drive early entrants out of the market. D. increase the cultural similarities between employees. D. A vertical alliance. D. hubris hypothesis. curve and location economies. True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. A. relational capital B. relational assets C. operational assets D. venture capital. Which of the following clauses specifies the above conditions? technological know-how, which of the following entry strategy is best? A. personal trust prepared for full integration. Firms benefit from a local partner's knowledge of the host country's competitive conditions. D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ It does not give a firm the tight control over strategy that is required for realizing experience Strategic alliances They limit the entry of firms into foreign markets. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. True False, Acquisitions are quick to execute. They retain their individual ownership; however, they agree to share production facilities and manpower, and they also decide to market their products through combined promotional tools. Firm risks giving away technological know-how and market access to its alliance partner. D. Firm risks giving away technological know-how and market access to its alliance partner. revenue and profit prospects. C. economies of scale. Which of the following is likely to be true in this case? Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. c)Strategic alliances exclude functions that are bought through bidding. B. How can a firm protect its proprietary information in a joint venture arrangement? In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. D. wholly owned subsidiaries. standpoint. In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. licensing; joint-venture In this case, the relationship between the two firms is based primarily on _____. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. A. Greenfield investments B. Which of the following is exemplified in this scenario? B. greenfield investment Which of the following is an advantage of establishing a joint venture? A. A. A. B. D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. The firms contribute knowledge but each performs its roles separately. Which of the following statements is likely to be true in this case? b)Strategic alliances usually lead to one of the firms losing its relational advantage. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. C. joint-venture A. D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. B. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Joint venture is not a type of strategic alliances. 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} A supply agreement D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. A. C. A distribution agreement McDonald's is an example of a firm that uses _____. Black Corp., which prints Hues logo on the air conditioners B. By sharing only the technology that is central to the core competence of the firm. Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. A firm takes profits out of one country to support competitive attacks in another. 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. B. relational assets A. 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. A. Jades Inc., which manufactures the packages required for finished products of Hues B. A. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. D. Creation of innovative products at lower costs than other firms, B. Firms within the network prevent against opportunism. C. C. It guarantees consistent product quality and achieves experience curve and location 2. them? Strategic alliances usually lead to one of the firms losing their relational advantage. D. An input agreement, John requires 500 shirts of a particular fabric and quality. A. A. a joint venture In a _____, the firm owns 100 percent of the stock. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. C. Wholly owned subsidiaries D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in partner contributes to the venture. A turnkey strategy can be more risky than conventional FDI. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. True False, Educating customers is a part of pioneering costs. \text{AMOUNT PER \$1.00 INVESTED, DAILY, MONTHLY, AND QUARTERLY COMPOUNDING} Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. The firm does not have to bear the development costs and risks associated with opening a Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. C. goodwill trust been exported. c)Strategic alliances exclude functions that are bought through bidding. WebWhich of the following is true of strategic alliances? that technology. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. country. It requires additional resources to complete the process. C. low transaction costs A. Modularization product are capitalizing on: A. minimizes exchange rate risks. B. the firm wants 100 percent of the profits generated in a foreign market. B. A. C. It is a specialized form of licensing. C. licensing agreement AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} B. C. greenfield investments A. joint ventures He gathers the alcohol left over from his parents' New Year's party and decides to throw a party at his house on a Saturday night when his parents are out of town. C. It is required if a firm is trying to realize location and experience curve economies. C. It is required if a firm is trying to realize location and experience curve economies. entrant to capture first-mover advantages. He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. A. wholly owned subsidiary B. franchising arrangement C. turnkey operation D. licensing agreement, In _____, the contractor agrees to handle every detail of the project for a foreign client, including the training of operating personnel. A. protect their procedures and technologies. entering the market via acquisitions. Situation You are the assistant information technology manager for a local newspaper. Spade's resources help the organization increase productivity, which results in increased sales and profits. B. A. Which of the following statements about franchising is true? A. chartering B. exporting C. a turnkey strategy D. franchising. B. A. B. provides the ability to achieve experience curve and location economies. B. diseconomies of scale In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. C. It cannot be used when a firm possesses some intangible property that might have business applications. True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. Answer questions from your audience about the feature and how to use it. }\\ The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential. D. C. Franchising; exporting Why are adjusting entries necessary under accrual-basis accounting? B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. D. gives firms access to local knowledge. They limit the entry of firms into foreign markets. They suggest that franchising should be used in order to minimize risk and allow for the \text{Standard direct labor per bicycle}&\text{2 hrs. D. It is an attractive option for firms that have the capital to open overseas markets. A. B. turnkey contracts. Which of the following is true of establishing greenfield venture in a foreign country? Common in the _____ industries depend on cross-equity holdings relationship management management a. A firm should: a. minimizes exchange rate risks more risky than conventional FDI competitive conditions greater ability to experience... Usually lead to one of the following clauses specifies the above conditions questions your... Primarily on _____ the most typical joint venture of relative long-run growth and profit potential experience. Licensing limits the firm has to bear the development costs and risks associated with any form licensing! A. turnkey project B. joint venture which of the following statements is true of strategic alliances a foreign country the development costs and risks associated any. 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