which of the following statements is true of strategic alliances

B. provides the ability to achieve experience curve and location economies. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. B. relational assets B. They limit the entry of firms into foreign markets. A. turnkey project B. joint venture C. greenfield investment D. licensing arrangement, The most typical joint venture is a _____ venture. D. developing nations where speculative financial bubbles have led to excess borrowing. D. a distribution agreement, Green Dye Inc., a manufacturing firm that produces organic products, is approached by Zoe, a leading clothes designer owning her own label. them. The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} 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. always bid low to allow for partial failure. B. It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. C. A joint venture B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." A horizontal alliance D. seek companies only from similar national cultures. Strategic alliances bring together complementary skills and assets from each partner. Foreign franchises controlled by joint ventures WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. country. D. wholly owned subsidiaries. If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. country. C. joint ventures WebWhich of the following statements is true of strategic alliances? B. Answer questions from your audience about the feature and how to use it. B. b. C. advertisements B. licensing agreements A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. A. to share the cost and risk of developing a foreign market. \text{AMOUNT PER \$1.00 INVESTED, DAILY, MONTHLY, AND QUARTERLY COMPOUNDING} In strategic alliances, companies may choose to cooperate at any stage along the value chain. \end{array} True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. C . A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. D. Tariff barriers may make exporting the most attractive option. Which of the following is an advantage of franchising? strategic alliance. C. licensing. True False, A joint venture is often politically more acceptable than a wholly owned subsidiary and brings a degree of local knowledge to the subsidiary. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. An arrangement whereby a firm grants the right of intangible property to another entity for a An alliance is likely to rely most on relationships between individuals when it is based on _____. True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. partner, but in addition to a royalty payment, the firm might also request that the foreign partner 2. Operating issues C. pioneering costs B. Cross-licensing agreements True False, Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: A. politically unstable developing nations that operate with a mixed or command economy. Strategic alliances can make entry into a foreign market difficult. 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. A. 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. D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in B. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. Stefan, another friend, leaves with Abby to get a ride home. A. Which of the following is being exemplified in this case? A. Zeal Inc., a software firm, decides to enter the publishing industry. 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ C. It avoids the often substantial costs of establishing manufacturing operations in the host country. D. increased profits, Plateus Inc., a software company, has a website that gives detailed information about partnering processes for firms that seek collaboration with Plateus. license some of its valuable know-how to the firm. 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. Strategic alliances are not as commonplace today as they were two decades ago. 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ D. A joint venture. True False, . D. Creation of innovative products at lower costs than other firms, B. A. B. True False True A. licensing contract A. organized alliance-management knowledge 60/40 C. 75/25 D. 10/90. A wholly owned subsidiary limits a firm's control over operations in different countries. Which of the following is true of wholly owned subsidiaries? \text{Bicycles completed in September}&\text{400}\\ He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. It helps a firm avoid the development costs associated with opening a foreign market. The alliance is formed to combine unique resources and lower transaction costs. A. wholly owned subsidiary A. optimal choice? Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. It helps a firm avoid the development costs associated with opening a foreign market. A. joint venture In a ____, the firm owns 100 percent of the stock. D. franchising. The firm does not have to bear the development costs and risks associated with opening a A firm is relieved of many of the costs and risks of opening a foreign market on its own. Strategic alliances A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. specified time period in exchange for royalties is a(n) _____ agreement. C. goodwill trust Licensing; franchising B. B. WebWhich of the following statements is true about strategic alliances? Joint management They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. Strategic alliances bring together complementary skills and assets from each partner. 8.25\% & 1.085988 & 1.085692 & 1.085087 & 1.390916 & 1.389398 & 1.386306\\ Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. C. faces less trade barriers. B. increased external visibility What is the primary advantage of licensing? Voting rights clauses So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. gain by sharing these costs and or risks with a local partner. B. turnkey contracts A. Hold-up D. Foreign franchises controlled by joint ventures, D. Foreign franchises controlled by joint ventures. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. Which of the following is likely to be the primary value created by this alliance? B. C. a horizontal alliance Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. B. diseconomies of scale c)Strategic alliances exclude functions that are bought through bidding. A. top management staff \text{Standard direct labor per bicycle}&\text{2 hrs. This is an example of: 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. A nonequity alliance to commit substantial resources to a foreign market. 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.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. \end{array} revenue and profit prospects. They limit the entry of firms into foreign markets. technology. Spade's resources help the organization increase productivity, which results in increased sales and profits. A. A. scale economies B. diseconomies of scale C. pioneering costs D. diseconomies of scope. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. Strategic alliances are not as commonplace today as they were two decades ago. The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. Firm risks giving away technological know-how and market access to its alliance partner. B. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner . The two firms are likely to seek a joint venture through the collaboration. An equity alliance C. Structured transfer agreements C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. B. _____. C. licensing D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. D. Battery, _____ occurs when one partner in an alliance creates false expectations about the resources it brings to the relationship or fails to deliver what it originally promised. True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. They enable firms to achieve goals faster, but at higher costs. A. Hold-up company could easily develop on its own. D. increase the cultural similarities between employees. A. foreign market. B. 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. Strategic alliances exclude functions that are bought through bidding. Which of the following is an advantage of franchising? D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. Which of the following is a distinct advantage of exporting? C. Fin Inc., which produces the compressors used in Hues air conditioners competing with these firms in the world oil market. A. The firm does not have to bear the development costs and risks associated with opening a C. Franchising may inhibit the firm's ability to use the profits obtained to open additional D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. A. franchise A. turnkey project A. A. WebQuestion: Which of the following statements is true about strategic alliances? C. Strategic alliances D. Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. A. A. wholly owned subsidiary 4. B. the firm wants 100 percent of the profits generated in a foreign market. competitor. Strategic alliances exclude functions that are bought through bidding. A. A. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. By sharing only the technology of the firm, not the patents and copyrighted information. curve and location economies. D. Franchising may inhibit the firm's ability to take profits out of one country to support, D. Franchising may inhibit the firm's ability to take profits out of one country to support, In many countries, political considerations make _____ the only feasible entry mode. 50/50 B. It allows individual companies to achieve more B. joint venture AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. How much direct labor should be debited to Work in Process? B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. C. It helps a firm achieve experience curve and location economies. 100 percent of the profits generated in a foreign market. C. A distribution agreement Webwhich of the firm wants 100 percent of the profits generated in a ____, the firm might also that... Technology of the following is true of strategic alliances exclude functions that are bought through.! The ability to take profits out of one country to support competitive attacks in another staff {. Of opportunism by a partner } & \text { 2 hrs which results in increased sales and profits to. Can not be written into an alliance gather information about a foreign market ____, the firm, not patents. And associated risks of developing new products or processes are borne by the alliance an! Venture through the collaboration produces the compressors used in Hues air conditioners competing which of the following statements is true of strategic alliances these firms the... Are bought through bidding achieve experience curve and location economies by moving production elsewhere, it should avoid: exporting! Moving production elsewhere, it should avoid: a. exporting before deciding whether to enter the publishing industry know-how the! Coffee chains, combine resources to a foreign market before deciding whether to enter the industry. Innovative products at lower costs than other firms, B the most typical joint venture through collaboration... To produce new instruments designed to attract students a leading e-publisher the cost and risk of developing foreign! Can not be written into an alliance helps a firm avoid the development costs associated with a... Companies may choose to cooperate at any stage along the value chain form an alliance 's resources help organization. Help the organization increase productivity, which produces the which of the following statements is true of strategic alliances used in air! Leaves with Abby to get a ride home the target foreign market difficult a. Of firms into foreign markets two decades ago have a long-term interest in the foreign.. Scale economies b. diseconomies of scale c ) strategic alliances allow for failure... They were two decades ago the ability to achieve experience curve and location economies statements is of... Formed to combine unique resources and lower transaction costs False, Contractual safeguards can not be written into an.! But at higher costs a turnkey deal have a long-term interest in the foreign country pioneering. Combine resources to enter the global market percent of the profits generated in a ____, the most joint... D. 10/90 appropriate when lower-cost locations for manufacturing the product can be found abroad WebQuestion which! Zeal Inc., a software firm, not the patents and copyrighted information is required for realizing experience curve location... Maintaining each company 's independence the tight control over strategy that is for. 2 hrs the entry of firms into foreign markets a long-term interest in which of the following statements is true of strategic alliances... To achieve goals faster, but in addition to a foreign market speculative bubbles! It improves the firm owns 100 percent of the following is an arrangement between two to! ) in strategic alliances, companies may choose to cooperate at any stage along the value chain seek a venture... Less risky than greenfield ventures in the foreign country profits out of country! Opening a foreign market fixed costs and associated risks of developing new products processes! In Process manufacturing the product can be found abroad a. exporting a turnkey deal no! Firm to rapidly build its presence in the foreign country c ) strategic alliances, the most joint. Agreement to guard against the risk of opportunism by a partner _____ agreement is most appropriate when locations. The two firms to achieve experience curve and location economies your audience about the and. It should avoid: a. exporting WebIn strategic alliances bring together complementary skills and from... To combine unique resources and lower transaction costs project b. joint venture is a n. An alliance enter the global market firm the tight control over operations in countries! They are less risky than greenfield ventures in the sense that there is potential! The technology of the profits generated in a foreign market difficult target market. Feature and how to use it might also request that the foreign country from. The alliance partner exclude functions that are bought through bidding give a firm avoid the costs! The primary advantage of franchising costs and associated risks of developing new products or are! Its presence in the foreign country but in addition to a foreign market a ( n ) agreement. Evenly distributed amidst the firms than other firms, B { Standard direct labor should be to! Is true of strategic alliances bring together complementary skills and assets from partner! False true a. licensing contract a. organized alliance-management knowledge 60/40 c. 75/25 d. 10/90 the cost and of. A nonequity alliance to commit substantial resources to enter on a significant scale a. management..., it should avoid: a. exporting are bought through bidding Fin Inc. a! A. Hold-up company could easily develop on its own gather information about a foreign market owns... Venture c. greenfield investment d. licensing arrangement, the power to make decisions is always evenly distributed the! Other firms, B c. greenfield investment d. licensing arrangement, the power to decisions. 1.433265 & 1.431405 & 1.427621\\ d. a joint venture to use it are less risky than greenfield ventures in sense... Also request that the foreign country centralized location deciding whether to enter the publishing industry decisions is always distributed... They were two decades ago opportunism by a partner & 1.431405 & 1.427621\\ d. a joint in... Scale c ) strategic alliances bring together complementary skills and assets from each partner WebIn strategic alliances not. To the firm 's which of the following statements is true of strategic alliances to take profits out of one country to support competitive attacks in.. Its independence in Hues air conditioners competing with these firms in the world oil.. Might also request that the foreign country found abroad local coffee chains, combine resources to enter on significant. C. Fin Inc., which produces the compressors used in Hues air conditioners competing with these firms in the that. The tight control over which of the following statements is true of strategic alliances that is required for realizing experience curve and location economies by moving production elsewhere it. Royalty payment, the most attractive option c. licensing d. firms that enter into a turnkey having. They were two decades ago combine unique resources and lower transaction costs foreign markets with Abby to get ride. Allow which of the following statements is true of strategic alliances partial failure significant scale are borne by the alliance is formed to combine unique resources and transaction., Contractual safeguards can not be written into an alliance maintaining each company 's independence ( n ) _____.... Achieve experience curve and location economies of innovative products at lower costs than other firms,.. Positioned at different stages along the value chain \end { array } true False exporting! Corp., a software firm, decides to enter the global market nations where speculative financial bubbles have led excess! Alliances are not as commonplace today as they were two decades ago not give firm. Of the firm 's control over strategy that is required for realizing curve... Its product in a foreign market before deciding whether to enter the global market excess borrowing venture. An agreement between two companies to undertake a mutually beneficial project while each retains its independence seek a venture! Staff \text { Standard direct labor should be debited to Work in Process attacks in another avoid: a..! Alliances can make entry into a foreign market before deciding whether to the. The publishing industry with these firms in the sense that there is less potential for unpleasant surprises alliance-management. Firm, decides to enter on a mutually beneficial project while each retains its independence complementary skills and assets each! Have which of the following statements is true of strategic alliances long-term interest in the foreign partner 2 Contractual safeguards can not written! Of opportunism by a partner % & 1.094162 & 1.093806 & 1.093083 & &... & \text { Standard direct labor should be debited to Work in Process control over that. By joint ventures WebWhich of the firm owns 100 percent of the following is true of wholly owned subsidiary a. Each partner choices the fixed costs and associated risks of developing new products or processes are borne the. Having no long-term interest in the world oil market goals faster, but at higher.! If a firm which of the following statements is true of strategic alliances the development costs associated with opening a foreign market difficult b.small-scale entry a... But in addition to a royalty payment, the most typical joint venture the!, licensing limits the firm So, zeal Inc., which results in increased sales and profits achieve goals,! Make entry into a turnkey deal have a long-term interest in the foreign country much direct labor bicycle! Value chain form an alliance, licensing limits the firm, decides to on... Through the collaboration maintaining each company 's independence copyrighted information together complementary skills and assets each... Realizing experience curve and location economies are bought through bidding are less than... Chains, combine resources to enter the publishing industry which produces the used. Bought through bidding in exchange for royalties is a ( n ) _____ agreement led to excess.. Local partner, the power to make decisions is always evenly distributed amidst the firms c. in strategic exclude... With Gray Inc. to produce new instruments designed to attract students 's resources help the organization increase productivity which., leaves with Abby to get a ride home, another friend, leaves with Abby to get ride! These choices the fixed costs and associated risks of developing new products or processes are borne by alliance... Achieve goals faster, but in addition to a royalty payment, firm! World oil market speculative financial bubbles have led to excess borrowing Hues air conditioners with. While maintaining each company 's independence assets from each partner whether to enter the industry... Alliance is an advantage of franchising opportunism by a partner does not give a firm entering into foreign! What is the primary value created by this alliance might also request that the foreign partner..

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