A. B. firms. B. develop. A. A. licensing; joint-venture B. A. exporting \text{Bicycles completed in September}&\text{400}\\ WebB. D. shared ownership, _____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ 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. D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the WebWhich of the following statements is true about strategic alliances with suppliers? They limit the entry of firms into foreign markets. company could easily develop on its own. B. In a ____, the firm owns 100 percent of the stock. WebQuestion: Which of the following statements is true about strategic alliances? A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. Which of the following statements about small-scale entry is true? B. licensing contracts A licensing agreement C. A coordination alliance An inherent degree of uncertainty is associated with a greenfield venture because of future A. B. strategic alliances C. Firms outside the network widen the scope of research solutions. C. turnkey contract Which of the following is being exemplified in this scenario? A. joint venture A. Governance issues B. McDonald's is an example of a firm that uses _____. B. D. Tariff barriers may make exporting the most attractive option. This is sometimes referred to as _____. C. They suggest turnkey operations that allow for a rapid startup. C. intervention and accountability B. licensing Which of the following is the primary objective of this strategic alliance? C. a horizontal alliance C. share the risks of developing new products or processes. 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. Redwood Inc., has an arm's-length relationship with Blue Ink Corp. Joint venture is not a type of strategic alliances. By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. Strategic alliances usually lead to one of the firms losing their relational advantage. Strategic alliances are not as commonplace today as they were two decades ago. C. It avoids the often substantial costs of establishing manufacturing operations in the host Which of the following statements strengthens Sanah's argument? Joint venture is not a type of strategic alliances. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. A. A. A. Greenfield investments B. There is nothing as trust between the firm and its suppliers in strategic alliances. 4) A company that. B. A. B. high-technology A. _____ are the advantages associated with entering a market early. optimal choice? D. Strategic alliances usually lead to True False, McDonald's is an example of a firm that uses a franchising strategy. D. Foreign franchises controlled by joint ventures, D. Foreign franchises controlled by joint ventures. A. to share the cost and risk of developing a foreign market. D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. Spade's resources help the organization increase productivity, which results in increased sales and profits. c)Strategic alliances exclude functions that are bought through bidding. B. make it easy for later entrants to win business. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign Small-scale entry is a way to gather information about a foreign market before deciding A firm is relieved of many of the costs and risks of opening a foreign market on its own. B. A supply agreement A turnkey strategy can be more risky than conventional FDI. C. joint ventures 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. C. Bondage In strategic alliances, companies may choose to cooperate at any stage along the value chain. An equity alliance D. A horizontal alliance, Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. B. Through these measures, Pharmax seeks to primarily achieve _____. businesses in the same country. C. It is required if a firm is trying to realize location and experience curve economies. Nate, the operations head, suggests extending the prospects by looking outside their usual network. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ Use the table above to find the amount per $1.00 invested. A. licensing agreements B. franchising agreements C. intangible property D. tangible property. It avoids the often substantial costs of establishing manufacturing operations in the host that technology. 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. An alliance is likely to rely most on relationships between individuals when it is based on _____. Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. Determine the prices at the breakeven points. Which of the following is an advantage of establishing a joint venture? Prepare a written outline of the points of your presentation. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." A contractual alliance Residual rights clauses C. It guarantees consistent product quality and achieves experience curve and location economies. It guarantees consistent product quality. Franchising; licensing B. Which of the following is exemplified in this scenario? 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ WebWhich of the following statements is true of strategic alliances? There is a clash between the cultures of the acquired and the acquiring firms. It helps a firm avoid the development costs associated with opening a foreign market. Give your reasons. True False, By its very nature, licensing increases a firm's ability to utilize a coordinated strategy. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. A. Turnkey projects are most common in industries which use simple, inexpensive production technologies. C. joint venture In strategic alliances, companies may choose to cooperate at any stage along the value chain. True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. prepared for full integration. A. Firms benefit from a local partner's knowledge of the host country's competitive conditions. This is sometimes referred to as ____. \text{Standard rate for direct labor}&\text{\$16.00 per hr. A. Jades Inc., which manufactures the packages required for finished products of Hues 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. If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. This encourages the supplier to align its incentives with Velara's needs. C. Strategic alliances A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. Licensing; franchising C. 75/25 A. . 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. \end{array} It the most feasible entry mode due to the political considerations. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. C. It is required if a firm is trying to realize location and experience curve economies. d)In strategic. C. It is a specialized form of licensing. B. 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. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner B. In strategic alliances, companies may choose to cooperate at any stage along the value chain. 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. Joint venture is not a type of strategic alliances. \end{array} C. the firm wants a plant that is ready to operate. B. turnkey strategy However, they do not have a supplier-buyer relationship. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. WebWhich of the following statements is true of strategic alliances? He partners with Loumang Inc., a fabric manufacturing company, to develop certain customized inputs. D. Hold minority ownership in the venture so that the firm does not have to give over control of the A. How much direct labor should be debited to Work in Process? C. Exit issues 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 _____. They enable firms to achieve goals faster, but at higher costs. WebWhich of the following statements is true of strategic alliances? A. Greenfield investments Hoschild Bicycle Company manufactures bicycles. the business opportunities for companies in the developing country. 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