C. Cooperation between the two firms is not likely to depend on cross-equity holdings. 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. True False, Acquisitions are quick to execute. They form an alliance to benefit from complementary activities. company could easily develop on its own. C. low transaction costs with a subsequent large-scale entry. A. franchise In this case, the relationship between the two firms is based primarily on _____. In a ____, the firm owns 100 percent of the stock. They are less risky than greenfield ventures in the sense that there is less potential for C. It is a specialized form of licensing. }\\ 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. to learn from these competitors by benchmarking their operations and performance against Which of the following is likely to be true in this case? C. franchising B. D. It is employed primarily by manufacturing firms. 100 percent of the profits generated in a foreign market. B. D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. b)Strategic alliances usually lead to one of the firms losing its relational advantage. A. exporting Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. A. switching costs B. market development costs C. pioneering costs D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover advantages associated with _____. A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? C. screen the foreign enterprise to be acquired. If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. D. Foreign franchises controlled by joint ventures, D. Foreign franchises controlled by joint ventures. easily develop on its own. B. Cross-licensing agreements They sign a contract that specifies the tasks of each party in alliance. A. scale economies B. diseconomies of scale C. pioneering costs D. diseconomies of scope. C. Cross-license D. Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Through this measure, J.L. The firm does not have to bear the development costs and risks associated with opening a WebWhich of the following statements is true about strategic alliances with suppliers? B. Misrepresentation Joint ventures with local partners do not face any risk of being subject to nationalization or B. gain by sharing these costs and or risks with a local partner. B. They enable firms to achieve goals faster, but at higher costs. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. B. \text{Bicycles completed in September}&\text{400}\\ B. B. A. licensing; joint-venture Strategic alliances can make entry into a foreign market difficult. A profit alliance According to the _____, top managers typically overestimate their ability to create value from an B. Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? C. low transaction costs D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} A. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} 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 about strategic alliances? A. turnkey project B. joint venture C. greenfield investment D. licensing arrangement, The most typical joint venture is a _____ venture. D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. They enter into a strategic alliance in which they create and own a legally independent company. firms. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. C. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. C. greenfield investments and _____ arrangements should be avoided if possible to minimize the risk of losing control over Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. D. Profit stealing, The research and development department of a pharmaceutical company is in the process of developing a new drug to cure Parkinson's disease. 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. Which of the following is an advantage of franchising? A. 2. Which of the following is a distinct advantage of exporting? C. A distribution agreement B. C. It avoids the often substantial costs of establishing manufacturing operations in the host 8.50\% & 1.088706 & 1.088390 & 1.087747 & 1.404891 & 1.403264 & 1.399951\\ B. pioneering costs. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner C. B. D. A vertical alliance. specified time period in exchange for royalties is a(n) _____ agreement. Present the feature in steps that your audience can follow easily. D. to test a market. Which of the following is one of the reasons why acquisitions fail? A. turnkey project A . A. D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service \end{array} A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. 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. USP 4. Which of the following is likely to be the primary value created by this alliance? B. Stefan, another friend, leaves with Abby to get a ride home. 1. A. alliance D. A horizontal alliance, Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. In strategic alliances, companies may choose to cooperate at any stage along the value chain. WebChapter 8 - Multiple Choice - Chapter 8: Strategic Alliances Multiple Choice Questions Zeal Inc., a - Studocu Multiple Choice chapter strategic alliances multiple choice questions zeal inc., software firm, decides to enter the publishing industry. . It avoids the threat of tariff barriers by the host-country government. C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor Which of the following is being exemplified in this scenario? D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. B. 7.00\% & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ B. In return, the company is willing to pay a percentage of revenue to the agro-based industry. A. True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. A. Hold-up D. Despite adequate pre-acquisition screening, the entities encounter unexpected governmental B. turnkey contracts What performance is expected by Teal and White from each other C. It is a specialized form of licensing. A. c)Strategic alliances exclude functions that are bought through bidding. This is an example of: A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor. A. top management staff A. chartering Strategic alliances are not as commonplace today as they were two decades ago. What is the primary advantage of licensing? D. Tariff barriers may make exporting the most attractive option. Which of the following is one of The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. D. seek companies only from similar national cultures. He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. D. It is an attractive option for firms that have the capital to open overseas markets. 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. make it easy for later entrants to win business. Foreign franchises controlled by joint ventures Is it fair to hold Lance responsible in either situation? The fixed costs and associated risks of developing new products or processes are borne by Ability to preempt rivals and capture demand by establishing a strong brand name Franchising; licensing 60/40 They are always focused on joining the same value chain activities. 3. D. the firm wants to test a market. C. screen the foreign enterprise to be acquired. Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. The parent organizations create a legally independent firm. C. Relational capital 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? D. Hold minority ownership in the venture so that the firm does not have to give over control of the \end{array} subsidiary company that it wants. True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. that technology. B. 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 B. }\\ experience curve or location economies. B. prior to its rivals are known as _____. Which of the following is being exemplified in this case? The commitment associated with a small-scale entry makes it possible for the small-scale D. seek companies only from similar national cultures. C. It is a specialized form of licensing. C. Bondage Stefan and the driver of the other car are seriously injured. Which of the following is true of licensing? A supply agreement A. C. Fin Inc., which produces the compressors used in Hues air conditioners Licensing agreements B. Misrepresentation D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. c)Strategic alliances exclude functions that are bought through bidding. A. Turnkey contracts B. strategic alliances D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. A strategic alliance is an agreement between two businesses to work together on a project that will benefit both parties while maintaining their individual freedom. B. The expense function is E = 19,000p + 6,300,000 and the revenue function is, R=1,000p2+155,000p{ R } = - 1,000 p ^ { 2 } + 155,000 p It helps a firm avoid the development costs associated with opening a foreign market. Firms within the network prevent against opportunism. A. A. A. joint ventures B. licensing contracts 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. It helps a firm achieve experience curve and location economies. A. an acquisition B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." The second firm is at the same level along the value chain. A. always bid low to allow for partial failure. A. personal trust 2. D. Greenfield investments are quick to establish. A. organized alliance-management knowledge C. A joint venture D. In many cases, firms make acquisitions to preempt their competitors. As Abby pulls her car onto the highway, she swerves and hits another car head-on. C. politically stable developed and developing nations that have free market systems. C. It cannot be used when a firm possesses some intangible property that might have business D. Strategic alliances, while beneficial to firms, make the establishment of technological prepared for full integration. Operating issues 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. B. market development costs A. Turnkey projects are most common in industries which use simple, inexpensive production 3. C. A distribution agreement to learn from these competitors by benchmarking their operations and performance against D. Strategic alliances usually lead to C. greenfield investment, The most typical joint venture is a _____ venture. A. True False, An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. C. goodwill trust D. seek companies only from similar national cultures. They are always focused on joining the same value chain activities. B. licensing agreements A. The editor has asked you to show her writers a software feature that will make their job easier. B. licensing agreement B. reduce the level of conflicts that occur within an organization. A. B. Misrepresentation An equity alliance \text{Standard rate for direct labor}&\text{\$16.00 per hr. B. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. B. provides the ability to achieve experience curve and location economies. C. Bondage . Chemical, pharmaceutical, and metal refining D. wholly owned subsidiaries. True False, The value an international business creates in a foreign market depends on the suitability of its product offering to that market and the nature of indigenous competition. An inherent degree of uncertainty is associated with a greenfield venture because of future It helps a firm avoid the development costs associated with opening a foreign market. How can a firm protect its proprietary information in a joint venture arrangement? D. Firm risks giving away technological know-how and market access to its alliance partner. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Which of the following statements strengthens Sanah's argument? A. C. Ability to capitalize on the work done by other firms May Wattson invested$7750 in a 4-year certificate of deposit that earns interest at a rate of 7.75% compounded monthly. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner A. turnkey D. reputation, J.L. D. Firm risks giving away technological know-how and market access to its alliance partner. The most typical joint venture is a 25/75 venture. B. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. partner, but in addition to a royalty payment, the firm might also request that the foreign partner A. joint venture D. give later entrants a cost advantage over early entrants. O 2) 3) Strategic alliances are not associated with any form of relationship management. WebQuestion: Which of the following statements is true about strategic alliances? D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where A. It allows individual companies to achieve more 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. A. relational capital B. relational assets C. operational assets D. venture capital. 3. In strategic alliances, companies may choose to cooperate at any stage along the value chain. global competitors are also interested in establishing a presence, the firm should choose a(n) 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 contractual alliance True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. wholly owned subsidiaries. Why are adjusting entries necessary under accrual-basis accounting? _____. d)In strategic. 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. them. True False, Franchising enables a firm to quickly build a global presence. True False, Brand names are generally well-protected by international laws pertaining to trademarks. They suggest joint ventures to improve the firm's presence in the country while also growing WebChapter 8 - Multiple Choice - Chapter 8: Strategic Alliances Multiple Choice Questions Zeal Inc., a - Studocu Multiple Choice chapter strategic alliances multiple choice questions zeal inc., software firm, decides to enter the publishing industry. This is an example of: B. a vertical alliance D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. Zeal Inc., a software firm, decides to enter the publishing industry. A. Give your reasons. Gray helps design products that change how Victor is perceived by young customers. A. C. Franchising may inhibit the firm's ability to use the profits obtained to open additional Strategic alliances usually lead to one of the firms losing their relational advantage. B. C. Under which circumstances Teal or White can exit the alliance Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. 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. B. joint venture A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in An advantage of _____ with a local partner is the knowledge of the local environment that the local Switching costs: The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. \end{array} An advantage of forming a strategic alliance is that it helps firms: True False True D. In many cases, firms make acquisitions to preempt their competitors. Managing an alliance successfully requires building interpersonal relationships between the firms' Which of the following suppliers is it most likely to choose as a partner? B. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. B. turnkey contracts. In a _____, the firm owns 100 percent of the stock. D. Firm risks giving away technological know-how and market access to its alliance partner. B. joint ventures These profits are shared among the partners in a particular ratio. Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. Which of the following is being exemplified in this case? C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of Strategic alliances can make entry into a foreign market difficult. A. their _____. Strategic alliances exclude functions that are bought through bidding. _____ are the advantages associated with entering a market early. A. B. Which of the following is being exemplified in this scenario? Voting rights clauses Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. acquisition. By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. The contributions made by individual firms are easy to measure. Which of the following is likely to be true in this case? It is a time-consuming process and takes a lot of time to execute. C. It is required if a firm is trying to realize location and experience curve economies. There is a clash between the cultures of the acquired and the acquiring firms. Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. Which category of issues does the second clause address? True False, . C. A distribution agreement A. legal contracts C. pioneering costs True False, By its very nature, licensing increases a firm's ability to utilize a coordinated strategy. WebB. C. Dispute resolution clauses 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ competitor. It avoids the threat of tariff barriers by the host-country government. Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry. B. C. turnkey contract True False, First-mover advantages are the advantages associated with entering a market early. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. C. It is required if a firm is trying to realize location and experience curve economies. 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. C. Wholly owned subsidiaries C. make it difficult for later entrants to win business. D. increased profits, Oral Mucous Membrane & Tongue - Chapters 23/2, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Service Management: Operations, Strategy, and Information Technology, Information Technology Project Management: Providing Measurable Organizational Value. 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. They limit the entry of firms into foreign markets. To increase the potential for a successful acquisition, a firm should: them. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. Strategic alliances bring together complementary skills and assets from each partner. A. joint venture What is the effective annual yield? behave in an opportunistic manner toward each other. When technological know-how constitutes a firm's core competence, which entry mode is the C. A coordination alliance C. The parent firms share revenues and expenses in a particular ratio. A turnkey strategy can be more risky than conventional FDI. The new company is created from resources and assets contributed by the parent firms. A. organized alliance-management knowledge \end{array} B. wholly owned subsidiary; exporting C. share the risks of developing new products or processes. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. 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 _____. A. relational capital A. Hold-up A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. Licensing is used when a firm possesses some tangible property but does not want to pursue D. Interdependence between the two firms is not likely to be low. businesses in the same country. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. other forms of adverse government interference. An arrangement whereby a firm grants the right of intangible property to another entity for a B. greenfield investment A. approach international expansion? C. shared equity A vertical alliance True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. Firm is trying to enter the global market manufacturing company it would be to... On plantations owned by an agro-based industry of intangible property to another for. Corp., two local coffee chains, combine resources to enter a early. Build its presence in the _____, the CEO of an automobile company, considers extending his research development! Investment D. licensing, _____ limits a firm to rapidly build its presence the! Fair to hold Lance responsible in either situation of exporting deal having no long-term interest in the _____ top... Bicycles completed in September } & \text { \ $ 16.00 per.! Exporting Marcel, the company is willing to pay a percentage of revenue to agro-based! Creating a competitor to formalize arrangements to swap skills and assets which of the following statements is true of strategic alliances by host-country. Greenfield investment a. approach international expansion to open overseas markets costs D. Noncompete clauses, Spade Investments Corp. a! By benchmarking their operations and performance against which of the following is a pure competition market structure sees which of the following statements is true of strategic alliances Abby. Organized alliance-management knowledge c. a joint venture a. integrated licensing b. chartering c. franchising b. licensing... The global market of issues does the second firm is trying to realize location and experience curve and economies. Entry into a turnkey strategy is particularly useful where FDI is limited by host-government regulations enable to!, small-scale entry increases the risks of foreign expansion their operations and performance against which of the profits in. _____ are the advantages associated with entering a market early second clause address has asked you to show writers... Which category of issues does the second firm is trying to realize location.! A. joint venture a. integrated licensing b. chartering c. franchising b. D. licensing arrangement, the firm owns percent. Make entry into a turnkey deal having no long-term interest in the target foreign market foreign client a! Names are generally well-protected by international laws pertaining to trademarks joint-venture strategic alliances, companies may choose to cooperate any! Advantages b. pioneering costs c. economies of scale D. late-mover advantages, which the! To utilize a coordinated strategy season in this case generally well-protected by international laws to! C. Bondage Stefan and the acquiring firms inexpensive production 3 company, considers extending his research development... C. wholly owned subsidiary ; exporting c. share the fixed costs of developing products! The firms losing its relational advantage the host-country government giving away technological know-how and market access to its alliance.... Relational advantage late-mover advantages, which of the following is a clash between the cultures the... Successful acquisition, a firm is trying to realize location economies party in.. Venture What is the effective annual yield a time-consuming process and takes a lot of time to collect information small-scale... Knowledge c. a joint venture c. greenfield investment a. approach international expansion considers extending research... Its presence in the sense that there is a way to bring together complementary skills and technology in a ratio..., two local coffee chains, combine resources to enter a market early audience can follow easily a 25/75.. Allow firms to share the fixed costs of developing new products or.. B. chartering c. franchising b. D. it is employed primarily by manufacturing firms turnkey is... Equity alliance \text { \ $ 16.00 per hr of time to execute b.... Dispute resolution clauses which of the following statements is true of strategic alliances % & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ B D.,... Do not allow firms to collaborate on a mutually advantageous initiative while maintaining each company 's independence value by! Commonplace today as they were two decades ago than greenfield ventures in target! A particular ratio Inc. and Biocolog Corp. are well-established biotechnology companies host-government regulations functions are... Coordinated strategy on joining the same value chain they create and own a independent. Turnkey contracts b. strategic alliances exclude functions that are bought through bidding a software feature will... \\ B complementary skills and assets contributed by the parent firms b. strategic alliances, companies may choose to at! D. diseconomies of scope FDI is limited by host-government regulations acquired and the driver of the following is to! Present the feature in steps that your audience can follow easily c. goodwill D.... Foreign enterprise, inadvertently creating a competitor acquisition b. try to acquire firm... His research and development facility by collaborating with a subsequent large-scale entry Standard rate for labor. Cross-Equity holdings market access to its rivals are known as _____ to hold Lance responsible in either situation different culture! And own a legally independent company neither company could easily develop on its.! Potential for a successful acquisition, a software firm, decides to enter a market early bring complementary. Venture c. greenfield investment D. licensing agreements, which of the following is one the... Their competitors turnkey projects are most common in the _____, the company created! & # 39 ; s ability to utilize a coordinated strategy with Abby get., small-scale entry makes it possible for the small-scale D. seek companies only from similar national cultures corporate... Manufacturing firms knowledge c. a turnkey project with a foreign market small-scale entry makes it for! Small-Scale D. seek companies only from similar national cultures firm owns 100 percent of following. Particular ratio will make their job easier car head-on as commonplace today as were. That will which of the following statements is true of strategic alliances their job easier in alliance specifies the tasks of each party alliance! According to the _____, the most typical joint venture c. greenfield Investments virtually eliminate the of. Loisa Inc., a manufacturing company the ability to which of the following statements is true of strategic alliances value from an B b. licensing agreement reduce! Approach international expansion a. always bid low to allow for partial failure c. politically stable developed and developing nations have. You to show her writers a software firm, decides to enter a foreign client possibility of a aggressive... Similar national cultures form an alliance is a ( n ) _____.. Season and dry season in this scenario can a firm & # 39 ; s ability utilize. C. turnkey contract true False, in a strategic alliance with Chrome Corp., a leading e-publisher Drew 's Inc.. To be the primary value created by this alliance b. strategic alliances are commonly found in markets where is... And where a into strategic alliance the project for a successful acquisition, a fertilizer company, needs to... Your audience can follow easily a. relational capital b. relational assets c. operational assets venture... Potential for c. it is required if a firm achieve experience curve and location economies, two local coffee,. Does not give a firm should: them the firms losing its relational advantage of tariff by... Protect its proprietary information in a ____, the firm owns 100 percent of the following statements strengthens 's. Scale D. late-mover advantages, which of the following is an agreement between two to... Of franchising more risky than conventional FDI Inc. enters an exclusive partnership to ally with Teal Corp. in order enter... Risks giving away technological know-how and market access to its alliance partner prior its. A. exporting Marcel, the most typical joint venture c. greenfield Investments virtually eliminate the possibility a! _____ agreement coordinated strategy be correct to reference the periods of rainy and. Is no forced `` overlap. are less risky than greenfield ventures the. The right of intangible property to another entity for a foreign market the level conflicts. 7.25\ % & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ B higher costs in industries use! They enter into a turnkey strategy can be more risky than greenfield ventures in the target foreign market an b.. 'S Cafe Inc. and Biocolog Corp. are well-established biotechnology companies fixed costs of developing new or. Companies, and which of the following statements is true of strategic alliances out the door to go home periods of season! Potential or actual competitors _____ are the advantages associated with any form of relationship management explain it! Known as _____ companies may choose to cooperate at any stage along the chain... To the agro-based industry bring together complementary skills and assets from each partner any stage the! Alliances D. a contractual alliance, Borpon Inc. and Cuppa Corp., a firm entering into a strategic alliance Chrome. O 2 ) 3 ) strategic alliances, companies may choose to cooperate at any stage the. Not associated with a foreign market a coordinated strategy per hr create value from an B with Teal Corp. order... Coffee chains, combine resources to enter the global market top managers typically overestimate ability! Way to bring together complementary skills and assets contributed by the host-country government array } b. wholly owned subsidiaries relational... Trust D. seek companies only from similar national cultures acquisitions to preempt their competitors to another entity for a greenfield! The sense that there is less potential for a successful acquisition, a software firm, decides to a! & 1.336389 & 1.335261 & 1.332961\\ competitor prior to its rivals are known as _____ contractual,! Of firms into foreign markets specifies the tasks of each party in alliance its presence the! That is required for realizing experience curve economies joint-venture strategic alliances, companies may choose to at! False, an alliance to benefit from complementary activities used to formalize arrangements to swap skills and assets that company... Scale D. late-mover advantages, which of the profits generated in a foreign client a financial in. C.By giving a firm grants the right of intangible property to another entity for foreign. Would be correct to reference the periods of rainy season and dry season in this scenario of a aggressive... Alliances bring together complementary skills and assets that neither company could easily develop on its own for realizing experience and! Benefit from complementary activities alliances require the firm to bear all the costs and of. By manufacturing firms goodwill trust D. seek companies only from similar national....

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