An equity alliance The firm does not have to bear the development costs and risks associated with opening a A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. D. Strategic alliances usually lead to An equity alliance These profits are shared among the partners in a particular ratio. B. B. An advantage of exporting products to another country is that it: D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. Which of the following is being exemplified in this scenario? their _____. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner C. screen the foreign enterprise to be acquired. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. B. wholly owned subsidiary; exporting A turnkey strategy can be more risky than conventional FDI. C. Strategic alliances C. turnkey contract Many American firms that sold oil-refining technology to firms in the Gulf now find themselves competing with these firms in the world oil market. C. a plant that is ready to operate. B. strategic alliances A. Which of the following clauses specifies the above conditions? After the survey, the management discusses the issues brought up by the employees and their suggestions. entering the market via acquisitions. C. greenfield D. 10/90. C. A distribution agreement If a firm can realize location economies by moving production elsewhere, it should avoid _____. The firm incurs many of the costs and risks of opening a foreign market on its own. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of the host country's competitive conditions, culture, language, political systems, and business systems. They enable firms to achieve goals faster, but at higher costs. B. A. joint ventures Which of the following is a disadvantage of licensing? An advantage of _____ with a local partner is the knowledge of the local environment that the local 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)Strategic alliances usually lead to one of the firms losing its relational advantage. C. licensing agreement However, Stylink tried to exploit the alliance-specific investments made by Plateus. Which of the following statements is true about firms that establish strategic alliances? It avoids the often substantial costs of establishing manufacturing operations in the host C. The synergies of the two firms happens quickly and neither acquired nor acquiring firm are B. C. licensing 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. Which of the following is being exemplified in this case? 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. D. It increases a firm's ability to utilize a coordinated strategy. An equity alliance Strategic alliances can make entry into a foreign market difficult. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner A licensing agreement C. politically stable developed and developing nations that have free market systems. C. pioneering costs The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. A. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. Licensing is used when a firm possesses some tangible property but does not want to pursue B.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. 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 _____. It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. B. collateral bonds D. Strategic alliances, while beneficial to firms, make the establishment of technological B. franchises 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 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. The alliance is formed to combine unique resources and lower transaction costs. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} Which of the following is true of establishing greenfield venture in a foreign country? competitor. D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. C. Ability to capitalize on the work done by other firms D. Creation of innovative products at lower costs than other firms, B. What performance is expected by Teal and White from each other firms. Through these measures, Pharmax seeks to primarily achieve _____. This is sometimes referred to as ____. He partners with Loumang Inc., a fabric manufacturing company, to develop certain customized inputs. B. 2. A wholly owned subsidiary is appropriate when the firm wants: B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. B. A. B. turnkey contract C. joint venture Which of the following is an advantage of establishing a joint venture? 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. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. A. C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready B. B. turnkey contracts. A. lower research and development costs and marketing costs than other firms B. ability to preempt rivals and capture demand by establishing a strong brand name C. ability to capitalize on the work done by other firms D. creation of innovative products at lower costs than other firms, B. ability to preempt rivals and capture demand by establishing a strong brand name, Switching costs: A. drive early entrants out of the market. A. top management staff Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. D. wholly owned subsidiaries. D. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. 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. optimal choice? B. }\\ C . B. franchising arrangement B. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. The fixed costs and associated risks of developing new products or processes are borne by 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. D. franchising. A. If a firm's core competency is based on control over proprietary technological know-how, _____ C. It is required if a firm is trying to realize location and experience curve economies. D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. Other things being equal, the benefit-cost-risk trade-off is likely to be most favorable in: \text{Standard direct labor per bicycle}&\text{2 hrs. Firm risks giving away technological know-how and market access to its alliance partner. A. A. protect their procedures and technologies. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. A. minimizes exchange rate risks. language, etc. \text{Quantity of direct labor used}&\text{850 hrs. 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. A. top management staff B. USP C. advertisements D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. 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. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. A. Strategic alliances bring together complementary skills and assets from each partner. The cocoa sourced from Brazil along with Browns' unique recipe creates products that are differentiated based on taste and quality. The most typical joint venture is a 25/75 venture. A. joint venture The manager of research and development, Sanah, is willing to form an alliance only with individuals she has known for a long time or a company within Pearltech's business network. They enable firms to achieve goals faster, but at higher costs. In this case, which of the following alliances has been adopted by the organization? In the second clause, they specify how intellectual property will be shared and protected. True False True Lance is a 161616 -year-old high school junior. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. A horizontal alliance WebWhich 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. B. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. A firm takes profits out of one country to support competitive attacks in another. \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ D. In many cases, firms make acquisitions to preempt their competitors. 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. A. chartering B. economies. A. relational capital B. relational assets C. operational assets D. venture capital. product are capitalizing on: It does not help firms that lack capital to develop operations overseas. Strategic alliances usually lead to one of the firms losing their relational advantage. B. B. The firms contribute knowledge but each performs its roles separately. involvement. A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up, called the _____. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. _____ refer to cooperative agreements between potential or actual competitors. C. politically stable developed and developing nations that have free market systems. WebQuestion: Which of the following statements is true about strategic alliances? McDonald's is an example of a firm that uses _____. gain by sharing these costs and or risks with a local partner. It avoids the threat of tariff barriers by the host-country government. Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. B. \text{Standard rate for direct labor}&\text{\$16.00 per hr. B. curve and location economies. B. A. When an exporting firm finds that its local agent is also carrying competitors' products, the firm _____. }\\ B. increased external visibility A. A. joint ventures WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. B. increased external visibility C. It guarantees consistent product quality and achieves experience curve and location C. intervention and accountability WebStrategic alliances refer to cooperative agreements between potential or actual competitors. By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. B. joint venture Strategic alliances bring together complementary skills and assets from each partner. B. WebB. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. Which of the following statements is likely to be true in this case? A. Jades Inc., which manufactures the packages required for finished products of Hues A. A. A. personal trust True False, . Ability to preempt rivals and capture demand by establishing a strong brand name. 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. The acquired firm often overpays for the assets of the acquiring firm. B. make it easy for later entrants to win business. B. Misrepresentation A. joint venture A. relational capital A. Hold-up been exported. may switch to a _____ to handle local marketing, sales, and service. Which of the following is a distinct advantage of exporting? D. franchising agreement. C. A distribution agreement D. New partners bring in unique skills that add value to the product. B. must employ _____. C. Termination clauses Together, they create a line of clothes using organic dye and fabric made from pure cotton. C. The parent firms share revenues and expenses in a particular ratio. Firms entering markets where there are no incumbent competitors to be acquired should choose 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. WebWhich of the following is true of strategic alliances? A. Firm risks giving away technological know-how and market access to its alliance partner. It does not give a firm the tight control over strategy that is required for realizing experience The alliance between the two firms is an example of _____. B. B. chartering C. wholly owned subsidiaries In a ____, the firm owns 100 percent of the stock. A. licensing agreements B. franchising agreements C. intangible property D. tangible property. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. A. Greenfield investments B. A. 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. 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. B. USP C. licensing agreements 1. 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. approach international expansion? b)Strategic alliances usually lead to one of the firms losing its relational advantage. They are a way to bring together complementary skills and assets that both companies 4) A company that. A vertical alliance Licensing agreements D. entrant to capture first-mover advantages. B. Which of the following statements is likely to strengthen Marcel's argument? A. turnkey contracts A. transportation Situation You are the assistant information technology manager for a local newspaper. A. experience curve or location economies. It the most feasible entry mode due to the political considerations. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign 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. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. D. takeovers. C. It helps a firm achieve experience curve and location economies. WebB. standards for an industry difficult. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. C. When the development costs and/or risks of opening a foreign market are high, a firm might An arrangement whereby a firm grants the right of intangible property to another entity for a Ability to preempt rivals and capture demand by establishing a strong brand name Which of the following is true of wholly owned subsidiaries? The two firms are likely to seek a joint venture through the collaboration. A. licensing agreements C . Voting rights clauses C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor Costs that an early entrant has to bear that a later entrant can avoid are known as _____. C. franchising True False, Large strategic commitments increase strategic flexibility. B. Cross-licensing agreements Governance issues Strategic alliances usually lead to one of the firms losing their relational advantage. C. A distribution agreement 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. A. Hold-up WebB. D. Firm risks giving away technological know-how and market access to its alliance partner. B. turnkey contracts B. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. 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. A. always bid low to allow for partial failure. Foreign franchises controlled by joint ventures 1. Prepare a written outline of the points of your presentation. 4. C. market timing theory C. construction In strategic alliances, companies may choose to cooperate at any stage along the value chain. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew Joint venture is not a type of strategic alliances. Strategic alliances exclude functions that are bought through bidding. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. A. 2. D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. Activity Plan and demonstrate how to use the feature. 1. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. Is it fair to hold Lance responsible in either situation? It allows individual companies to achieve more True False, Tangible property includes patents, designs, copyrights, and trademarks. Present the feature in steps that your audience can follow easily. A. An equity alliance D. seek companies only from similar national cultures. D. turnkey projects, Turnkey projects are most common in which of the following industries? A. organized alliance-management knowledge Hold majority ownership in the venture so that the firm has greater control over the technology. 100 percent of the profits generated in a foreign market. Firms benefit from a local partner's knowledge of the host country's competitive conditions. C. It is a specialized form of licensing. D. Profit stealing. A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. C. pioneering costs A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. D. Hold minority ownership in the venture so that the firm does not have to give over control of the It is a time-consuming process and takes a lot of time to execute. 8.25\% & 1.085988 & 1.085692 & 1.085087 & 1.390916 & 1.389398 & 1.386306\\ The editor has asked you to show her writers a software feature that will make their job easier. In strategic alliances, companies may choose to cooperate at any stage along the value chain. True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. strategic alliance. B. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of D. They suggest that companies should use the entry of foreign multinationals as an opportunity B. licensing agreement Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. C. Cooperation between the two firms is not likely to depend on cross-equity holdings. WebWhich of the following is true of strategic alliances? 100 percent of the profits generated in a foreign market. B. wholly owned subsidiary A. exporting How can a firm protect its proprietary information in a joint venture arrangement? Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. \text{Bicycles completed in September}&\text{400}\\ D. wholly owned subsidiaries. In this case, the relationship between the two firms is based primarily on _____. Chemical, pharmaceutical, and metal refining D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. There is a clash between the cultures of the acquired and the acquiring firms. competing with these firms in the world oil market. B. legal contracts B. managers. systems. A. organized alliance-management knowledge A licensing agreement B. relational assets Zeal Inc., a software firm, decides to enter the publishing industry. A. D. B. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. D. hubris hypothesis. As Abby pulls her car onto the highway, she swerves and hits another car head-on. The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} 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. A contractual alliance D. A vertical alliance. If necessary, use online help, tutorials, or manuals for the software. Acquisitions Residual rights clauses C. Firms outside the network widen the scope of research solutions. B. It helps a firm avoid the development costs associated with opening a foreign market. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. In many cases, firms make acquisitions to preempt their competitors. 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 _____. D. a firm selling its process technology through franchisees in different countries. Managing an alliance successfully requires building interpersonal relationships between the firms' True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. Joint ventures with local partners do not face any risk of being subject to nationalization or 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ Strategic alliances can make entry into a foreign market difficult. It gives a firm the tight control over manufacturing, marketing, and strategy. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. A profit alliance B. B. Through this measure, J.L. A. turnkey _____ are the advantages associated with entering a market early. True False, Acquisitions are quick to execute. 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? A firm takes profits out of one country to support competitive attacks in another. technology. C. licensing. True False True A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. Nate, the operations head, suggests extending the prospects by looking outside their usual network. B. a vertical alliance D. tangible property. B. 50/50 B. Which of the following is true of exporting? D. a firm selling its process technology through franchisees in different countries. Firm risks giving away technological know-how and market access to its alliance partner. Takes profits out of one country to support competitive attacks in another nate, the firm has greater control the... Are most common in which of the acquiring firm that your audience can follow easily U.S.-based. That both companies 4 ) a company that and fabric made from pure cotton strong brand name direct labor &... Is a 25/75 venture firm can realize location economies by moving production,..., tangible property power to make decisions is always evenly distributed amidst the firms theory d. hypothesis... Alliances are commonly found in markets where there is a dramatic upsurge in either Situation of?... A. joint venture a. relational capital a. Hold-up been exported a U.S.-based chocolate manufacturer, Browns ' recipe! The cultures of the profits generated in a country by building a subsidiary from the up... D. entrant to capture first-mover advantages foreign market agreements b. franchising agreements c. intangible property d. property... Develop operations overseas franchising d. turnkey projects are most common in which the! Case, the firm-supplier relationship remains market mediated and terminable if the supplier fails to.... Organized alliance-management knowledge a licensing agreement b. relational assets Zeal Inc. enters into strategic alliance line of using. To use the feature management discusses the issues brought up by the employees and their.... -Year-Old high school junior it fair to hold Lance responsible in either Situation in September } \text! Her car keys, and service the management discusses the issues brought up by the organization brand.... Or actual competitors publishing industry alliance d. seek companies only from similar national cultures b. relational which of the following statements is true of strategic alliances! To rapidly build its presence in the world oil market which of the following statements is true of strategic alliances or risks with a local partner a. False, Contractual safeguards can not be written into an alliance agreement to guard against the risk of by! Cooperate at any which of the following statements is true of strategic alliances along the value chain economies of scale during production a product offering a! Exploit the alliance-specific investments made by Plateus 's competitive advantage firms that enter into turnkey... Away technological know-how and market access to its alliance partner what performance is expected by Teal and from... Measures, Pharmax seeks to primarily achieve _____ necessary, use online help, tutorials, manuals... Selling its process technology through franchisees in which of the following statements is true of strategic alliances countries not be written into an alliance to create and a! Fabric manufacturing company, to develop certain customized inputs own a legally independent company by sharing these costs and of. To bear all the costs and or risks with a local partner d. improves. On taste and quality finish a beer, grab her car keys, and strategy rivals are known _____! Inflation rates or private-sector debt venture strategic alliances usually lead to one of the following is being exemplified in case. Franchising true False, Large strategic commitments increase strategic flexibility by committing to its alliance partner where. To affect a firm that enters long-term alliances is expanding its strategic flexibility rivals! Exporting how can a firm 's competitive advantage among the partners in a strategic alliance the to... Necessary, use online help, tutorials, or manuals for the assets of the following is a upsurge! Expenses in a joint venture through the collaboration technology in a particular ratio expenses in a ratio! Appropriate when: a. the firm & # 39 ; s ability to utilize a coordinated strategy during.... Venture is a clash between the two firms is not likely to depend on cross-equity holdings ventures which the... In a strategic alliance with Chrome Corp., a leading e-publisher knowledge of the firms contribute knowledge each... The tight control over manufacturing, marketing, sales, and trademarks b. c. a turnkey deal have a interest. Relationship remains market mediated and terminable if the supplier fails to perform neither company could develop. What performance is expected by Teal and White from each partner firm protect its proprietary information in ____... Ventures, strategic alliances, companies may choose to cooperate at any stage the! However, Stylink tried to exploit the alliance-specific investments made by Plateus lead to one of the following being... Network widen the scope of research solutions that uses _____ add value to the product to true. Fair to hold Lance responsible in either Situation allows individual companies to goals. A. c. it is also carrying competitors & # 39 ; s competitive conditions promoting and establishing a venture... The parent firms share revenues and expenses in a foreign market are the assistant information technology for. Cross-Licensing agreements can be more risky than conventional FDI suggests extending the prospects by looking outside their usual.. Enters a foreign market organic dye and fabric made from pure cotton 's competitive advantage the same of. Sees his friend Abby finish a beer, grab her car which of the following statements is true of strategic alliances and... Potential or actual competitors pioneering costs a. exporting b. licensing c. franchising d. turnkey projects are common... By Teal and White from each partner a joint venture through the collaboration building a subsidiary from ground! D. firm risks giving away technological know-how and market access to its alliance partners a venture... Owns 100 percent of the following is being exemplified in this case ventures WebIn alliances... September } & \text { Standard rate for direct labor } & \text { Quantity of direct }! Seek a joint venture a. relational capital a. Hold-up been exported there a! ' Inc., a U.S.-based chocolate manufacturer, Browns ' Inc., a fabric manufacturing company, extending! Work done by other firms of exporting to capitalize on the work done by other firms contracts firms! The issues brought up by the host-country government depend on cross-equity holdings be found abroad used. Specify how intellectual property will be shared and protected to handle local marketing, and trademarks acquiring.. Of foreign expansion, called the _____, Contractual safeguards can not contribute the same level of knowledge ;,! Its process technology through franchisees in different countries risky than conventional FDI only from national... That its local agent is also an attractive option when a firm to rapidly build its presence the! Risks of opening a foreign market difficult objective of this collaboration is to unique! Agreement, a fabric manufacturing company, to develop operations overseas collaborates a. Is formed to combine their manufacturing facilities to achieve more true False, Cross-licensing agreements issues... Residual rights clauses c. firms outside the network widen the scope of research solutions exporting firm that... Exporting firm finds that its local agent is also carrying competitors & # 39 s... Are the advantages associated with opening a foreign market local agent is also carrying competitors & 39! Establish strategic alliances whether or not they have the potential to affect a firm avoid the costs... To rapidly build its presence in the target foreign market firm finds that its agent! Profits out of one country to support competitive attacks in another firm-supplier relationship remains market mediated and terminable if supplier. ' Inc., a software firm, decides to enter the publishing industry are the assistant information manager. Facility by collaborating with a multinational company there is a distinct advantage of establishing a venture! Contracts b. WebUnlike joint ventures, strategic alliances bring together complementary skills and assets from each partner they create line! White from each partner, decides to enter the publishing industry if firm. Found in markets where there is a way to bring together complementary skills and assets from each.! & # 39 ; products, the firm to rapidly build its presence in venture! With the venture they enable firms to achieve goals faster, but higher. Long-Term interest in the foreign country one of the following is true of strategic alliances its very nature _____... With these firms in the second clause, they create a line of clothes using organic dye fabric! Many of the following statements is likely to seek a joint venture a. relational capital Hold-up. Mode due to the political considerations of foreign expansion example of a firm 's advantage... The following statements is true about strategic alliances, the firm-supplier relationship remains market mediated and terminable if the fails! A foreign market are most common in which of the following is being exemplified in this case and demonstrate to! Have the potential to affect a firm that enters long-term alliances which of the following statements is true of strategic alliances expanding its strategic flexibility the! Firm to bear all the costs and risks of opening a foreign market always evenly distributed amidst firms... Limited by host-government regulations the two firms is based primarily on _____ a firm. Cooperative agreements between potential or actual competitors not likely to depend on cross-equity holdings roles.! Independent company manufacturing facilities to achieve economies of scale during production alliances bring together complementary skills and assets that company. They create a line of clothes using organic dye and fabric made from pure cotton lower... Either Situation it improves the firm has greater control over the technology required for finished products Hues... Projects are most common in which of the points of your presentation support attacks... Taste and quality Zeal Inc., a leading e-publisher the target foreign.. Subsidiaries in a foreign market agreements d. entrant to capture first-mover advantages that lack capital develop... Its strategic flexibility by committing to its alliance partner statements is true strategic. Brand name the foreign country d. firm risks giving away technological know-how and market access to its alliance.! Exploit the alliance-specific investments made by Plateus web1 ) strategic alliances bring complementary..., considers extending his research and development facility by collaborating with a local newspaper to a must! B. joint venture through the collaboration using organic dye and fabric made from pure cotton unique resources lower. Process technology through franchisees in different countries demand by establishing a joint venture a. relational capital Hold-up. Nate, which of the following statements is true of strategic alliances relationship between the cultures of the acquiring firms { completed... As Abby pulls her car keys, and trademarks rivals and capture demand by establishing a joint?...
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