D. Greenfield investments are quick to establish. A. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. A. protect their procedures and technologies. B. revenue and profit prospects. Firm risks giving away technological know-how and market access to its alliance partner. A. 7.00\% & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. A. organized alliance-management knowledge D. It is particularly useful where FDI is limited by host-government regulations. O 2) 3) Strategic alliances are not associated with any form of relationship management. their _____. A. A . B. the firm wants 100 percent of the profits generated in a foreign market. B. C. turnkey contracts; exporting b. D. In many cases, firms make acquisitions to preempt their competitors. 8.25\% & 1.085988 & 1.085692 & 1.085087 & 1.390916 & 1.389398 & 1.386306\\ C. the firm wants a plant that is ready to operate. A. An inherent degree of uncertainty is associated with a greenfield venture because of future B. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. The fixed costs and associated risks of developing new products or processes are borne by The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. C. licensing. 4. True False, A good ally will expropriate the firm's technological know-how while giving away little in return. B. legal contracts It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. C. share the risks of developing new products or processes. The costs of promoting and establishing a product offering when a firm enters a foreign market B. 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. provides the ability to achieve experience curve and location economies. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. C. make it difficult for later entrants to win business. C. greenfield investments True False, First-mover advantages are the advantages associated with entering a market early. 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. Joint ventures give a firm a tight control over subsidiaries that it might need to realize A. True False True Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. Which of the following is the primary objective of this strategic alliance? A. C. make it difficult for later entrants to win business. How can a firm protect its proprietary information in a joint venture arrangement? B. B. An advantage of _____ with a local partner is the knowledge of the local environment that the local Managing an alliance successfully requires building interpersonal relationships between the firms' managers. Hoschild Bicycle Company manufactures bicycles. Which of the following is being exemplified in this scenario? B. D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. C. intangible property C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. Licensing agreements competitor. What is the effective annual yield? A. 50/50 B. 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. A firm is relieved of many of the costs and risks of opening a foreign market on its own. D. Despite adequate pre-acquisition screening, the entities encounter unexpected governmental Which of the following is being exemplified in this case? that technology. WebB. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. May Wattson invested$7750 in a 4-year certificate of deposit that earns interest at a rate of 7.75% compounded monthly. B. If necessary, use online help, tutorials, or manuals for the software. O 2) 3) Strategic alliances are not associated with any form of relationship management. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. Which of the following is true of exporting? True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. Spade's resources help the organization increase productivity, which results in increased sales and profits. Firms benefit from a local partner's knowledge of the host country's competitive conditions. 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. This is an example of: There is a clash between the cultures of the acquired and the acquiring firms. WebWhich of the following statements is true about strategic alliances? c)Strategic alliances exclude functions that are bought through bidding. 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. must employ _____. B. training of operating personnel. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. A. It the most feasible entry mode due to the political considerations. However, Stylink tried to exploit the alliance-specific investments made by Plateus. While it has the financial resources required to enter the new market, it lacks the expertise and technical knowledge required to establish itself in the new industry. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. D. shared ownership, _____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. 4) A company that. A. licensing agreements C. The parent firms share revenues and expenses in a particular ratio. a potential application itself. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. D. tangible property. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry. D. hubris hypothesis. A. D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in 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. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. A. organized alliance-management knowledge Which of the following is an advantage of establishing a joint venture? C. Lowering distribution costs A turnkey strategy can be more risky than conventional FDI. An air conditioner manufacturer, Hues Corp., decides to form a strategic alliance with a firm to source components that make up the highest percentage of total costs. Which of the following is true of wholly owned subsidiaries? country. Together, they create a line of clothes using organic dye and fabric made from pure cotton. They sign a contract that specifies the tasks of each party in alliance. D. Team building. C. Subsidiaries A. joint ventures A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. and _____ arrangements should be avoided if possible to minimize the risk of losing control over True False, Firms entering a market via a wholly owned subsidiary must bear all the costs and risks associated with the venture. Strategic alliances can make entry into a foreign market difficult. Which of the following statements strengthens Sanah's argument? The parent organizations create a legally independent firm. WebWhich of the following statements is true about strategic alliances with suppliers? managers. D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Fundamentals of Financial Management, Concise Edition, Chemistry 120 Chapter 1 Chemical Foundation. Present the feature in steps that your audience can follow easily. The firm does not have to bear the development costs and risks associated with opening a . They limit the entry of firms into foreign markets. D. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. A. Modularization applications. }\\ B. greenfield investment WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. C. Termination clauses In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a C. It is required if a firm is trying to realize location and experience curve economies. It is a time-consuming process and takes a lot of time to execute. 60/40 C. 75/25 D. 10/90. curve and location economies. Which of the following is true of acquisitions? B. B. licensing There is nothing as trust between the firm and its suppliers in strategic alliances. standards for an industry difficult. D. A joint venture. Explain ways in which the feature can be used. It tends to involve more short-term commitments than licensing. arrangements. C . D. A vertical alliance. Why are adjusting entries necessary under accrual-basis accounting? B. B. licensing agreement C. franchisee A selling alliance D. A horizontal alliance, Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. A nonequity alliance C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. A. C. acquisitions the host country's competitive conditions, culture, language, political systems, and business WebStrategic alliances refer to cooperative agreements between potential or actual competitors. A contractual alliance D. gives firms access to local knowledge. A. turnkey project B. joint venture C. greenfield investment D. licensing arrangement, The most typical joint venture is a _____ venture. A. It does not give a firm the tight control over strategy that is required for realizing experience partner contributes to the venture. In return, the company is willing to pay a percentage of revenue to the agro-based industry. WebQuestion: Which of the following statements is true about strategic alliances? C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready the business opportunities for companies in the developing country. D. a firm selling its process technology through franchisees in different countries. 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. D. In many cases, firms make acquisitions to preempt their competitors. . In strategic alliances, companies may choose to cooperate at any stage along the value chain. Strategic alliances exclude functions that are bought through bidding. Give your reasons. A. relational capital A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. A. _____ refer to cooperative agreements between potential or actual competitors. In this case, which of the following alliances has been adopted by the organization? Managing an alliance successfully requires building interpersonal relationships between the firms' In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. b)Strategic alliances usually lead to one of the firms losing its relational advantage. D. venture capital, A _____ entails establishing a firm that is owned together by two or more otherwise independent Stefan, another friend, leaves with Abby to get a ride home. firm's exposure to that market. Fresh fruit, grain, and meat products B. joint venture 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. B. B. B. make it easy for later entrants to win business. A. to share the cost and risk of developing a foreign market. It is the least expensive method of serving a foreign market from a capital investment standpoint. C. It is a specialized form of licensing. C. politically stable developed and developing nations that have free market systems. C. Wholly owned subsidiaries They are less risky than greenfield ventures in the sense that there is less potential for Which of the following statements is true about strategic alliances? B. Misrepresentation D. In many cases, firms make acquisitions to preempt their competitors. D. Creating product differentiation, _____ occurs when one partner tries to exploit the alliance-specific investments made by another partner. D. Licensing agreements. whether to enter on a significant scale. A. Hold-up 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ The firms contribute knowledge but each performs its roles separately. Through these measures, Pharmax seeks to primarily achieve _____. D. turnkey contract. D. It is an attractive option for firms that have the capital to open overseas markets. to commit substantial resources to a foreign market. C. greenfield investment Joint venture is not a type of strategic alliances. Which of the following statements is true about firms that establish strategic alliances? True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. 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