A. joint ventures C. construction C. The synergies of the two firms happens quickly and neither acquired nor acquiring firm are 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. D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in A. chartering C. a horizontal alliance AnnualRate7.00%7.25%7.50%7.75%8.00%8.25%8.50%8.75%9.00%9.25%Daily1.0725001.0751851.0778751.0805731.0832771.0859881.0887061.0914301.0941621.096900Monthly1.0722901.0749581.0776321.0803121.0829991.0856921.0883901.0910951.0938061.096524Quarterly1.0718591.0744951.0771351.0797811.0824321.0850871.0877471.0904131.0930831.095758Daily1.3230941.3363891.3498171.3633801.3770791.3909161.4048911.4190081.4332651.447666Monthly1.3220531.3352611.3485991.3620661.3756661.3893981.4032641.4172661.4314051.445682Quarterly1.3199291.3329611.3461141.3593881.3727851.3863061.3999511.4137231.4276211.441647. C. A distribution agreement 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. Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. A. switching costs C. Bondage True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. B. the firm wants 100 percent of the profits generated in a foreign market. It allows individual companies to achieve more C. licensing agreement B. A. D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. applications. A contractual alliance The commitment associated with a small-scale entry makes it possible for the small-scale B. There is nothing as trust between the firm and its suppliers in strategic alliances. It tends to involve more short-term commitments than licensing. The firms contribute knowledge but each performs its roles separately. In strategic alliances, companies may choose to cooperate at any stage along the value chain. _____ are the advantages associated with entering a market early. Prepare a written outline of the points of your presentation. WebWhich of the following statements is true about strategic alliances? revenue and profit prospects. B. C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready a potential application itself. Give your reasons. maximum expansion in the quickest amount of time. True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. C. Termination clauses A supply agreement C. faces less trade barriers. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. B. C. operational assets A. A. B. A wholly owned subsidiary is appropriate when the firm wants: 1. 50/50 B. WebB. They enable firms to achieve goals faster, but at higher costs. Black Corp., which prints Hues logo on the air conditioners C. It is a specialized form of licensing. develop. C. A distribution agreement B. B. \text{Quantity of direct labor used}&\text{850 hrs. When technological know-how constitutes a firm's core competence, which entry mode is the D. In many cases, firms make acquisitions to preempt their competitors. WebWhich of the following statements is true of strategic alliances? C. share the risks of developing new products or processes. C. greenfield investment D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of An equity alliance True False, A good ally will expropriate the firm's technological know-how while giving away little in return. It does not help firms that lack capital to develop operations overseas. C. A distribution agreement D. In many cases, firms make acquisitions to preempt their competitors. An advantage of _____ with a local partner is the knowledge of the local environment that the local A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. A. turnkey contracts B. D. New partners bring in unique skills that add value to the product. Residual rights clauses entrant to capture first-mover advantages. When an exporting firm finds that its local agent is also carrying competitors' products, the firm A. joint ventures B. Firms within the network prevent against opportunism. A. relational capital Together, they create a line of clothes using organic dye and fabric made from pure cotton. Strategic alliances A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. C. licensing. 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. D. the firm wants to test a market. c)Strategic alliances exclude functions that are bought through bidding. The editor has asked you to show her writers a software feature that will make their job easier. B. Misrepresentation WebWhich of the following statements is true of strategic alliances? A. C. greenfield D. shared ownership, _____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. A. greenfield investments 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. Which of the following is being exemplified in this case? 4. C. They suggest turnkey operations that allow for a rapid startup. Which of the following statements is likely to strengthen Marcel's argument? C. low transaction costs B. B. Misrepresentation C. It cannot be used when a firm possesses some intangible property that might have business Early entrants to a market that are able to create switching costs that tie the customer to the O 2) 3) Strategic alliances are not associated with any form of relationship management. systems. A. licensing; joint-venture B. wholly owned subsidiary; exporting C. turnkey contracts; exporting D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in technological know-how, which of the following entry strategy is best? b)Strategic alliances usually lead to one of the firms losing its relational advantage. Which of the following is true of wholly owned subsidiaries? A. licensing; joint-venture B. Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. A. True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. C. They limit the entry of firms into foreign markets. The costs of promoting and establishing a product offering when a firm enters a foreign market B. A. an acquisition B. relational assets A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. B. C. make it difficult for later entrants to win business. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." B. D. franchising agreement. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. A. D. Apparel, shoes, and leather products, B. A. transportation B. high-technology C. construction D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms. B. chartering A. D. consumer durables, _____ is pursued primarily by manufacturing firms and _____ is employed primarily by service them? B. Pooling similar resources A. Turnkey Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. 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. A. always bid low to allow for partial failure. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. It allows individual companies to achieve more This is an example of: After the survey, the management discusses the issues brought up by the employees and their suggestions. A. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. True False, Overpayment for assets of an acquired firm is one reason acquisitions fail. The alliance between the two firms is an example of _____. Why are adjusting entries necessary under accrual-basis accounting? What performance is expected by Teal and White from each other C. Under which circumstances Teal or White can exit the alliance Use the table above to find the amount per $1.00 invested. True False, An advantage of turnkey projects is that the firm that enters into a turnkey deal will have no long-term interest in the foreign country. B. make it easy for later entrants to win business. In the second clause, they specify how intellectual property will be shared and protected. Which of the following is being exemplified in this case? B. D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is Strategic alliances can make entry into a foreign market difficult. 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. 3. 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. 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 _____. A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. C. Lowering the transaction costs at all stages of the value chain WebWhich of the following is true of strategic alliances? An advantage of forming a strategic alliance is that it helps firms: A. B. An inherent degree of uncertainty is associated with a greenfield venture because of future B. make it easy for later entrants to win business. What is the interest earned for 1 year? 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 D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. They limit the entry of firms into foreign markets. Which of the following is a distinct advantage of exporting? D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. D. diseconomies of scope. D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. This is sometimes referred to as _____. Through these measures, Pharmax seeks to primarily achieve _____. The new company is created from resources and assets contributed by the parent firms. 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. Which of the following is likely to be covered under the clause that deals with governance issues? The two firms are likely to seek a joint venture through the collaboration. specified time period in exchange for royalties is a(n) _____ agreement. C. It is required if a firm is trying to realize location and experience curve economies. Ability to preempt rivals and capture demand by establishing a strong brand name. B. 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