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. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Voting rights clauses He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. B. A. whether to enter on a significant scale. Voting rights clauses In a _____, the firm owns 100 percent of the stock. 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. C. goodwill trust In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. \end{array} By sharing only the technology that is central to the core competence of the firm. C. intervention and accountability A. 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 _____. C. greenfield C. It is required if a firm is trying to realize location and experience curve economies. B. performance extrapolation hypothesis C. make it difficult for later entrants to win business. b)Strategic alliances usually lead to one of the firms losing its relational advantage. It tends to involve more short-term commitments than licensing. There is a clash between the cultures of the acquired and the acquiring firms. B. pioneering costs. C. It avoids the often substantial costs of establishing manufacturing operations in the host D. give later entrants a cost advantage over early entrants. Which of the following statements about franchising is true? A. B. A. minimizes exchange rate risks. C. licensing agreement C. Which of the following is being exemplified in this case? B. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. A. exporting B. D. Dispute clauses, Teal Inc., forms a strategic alliance with White Corp. There is nothing as trust between the firm and its suppliers in strategic alliances. C. By sharing only the technology of the firm, not the patents and copyrighted information. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. wholly owned subsidiary C. Subsidiaries It is the least expensive method of serving a foreign market from a capital investment A. Stefan and the driver of the other car are seriously injured. B. It avoids the often substantial costs of establishing manufacturing operations in the host In strategic alliances, companies may choose to cooperate at any stage along the value chain. Which of the following is true of licensing? A. relational capital C. Greenfield investments virtually eliminate the possibility of a more aggressive global competitor It is a time-consuming process and takes a lot of time to execute. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a 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. B. A. always bid low to allow for partial failure. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. Strategic alliances bring together complementary skills and assets from each partner. must employ _____. d)In strategic. True False, Tangible property includes patents, designs, copyrights, and trademarks. B. C. Equity clauses Lowering distribution costs at all stages of the value chain An equity alliance B. licensing agreements A. Which of the following is a disadvantage of licensing? A turnkey strategy can be more risky than conventional FDI. D. In many cases, firms make acquisitions to preempt their competitors. entrant to capture first-mover advantages. B. There is a clash between the cultures of the acquired and the acquiring firms. B. B. A. relational capital B. relational assets C. operational assets D. venture capital. D. wholly owned subsidiaries. C. shared equity However, they do not have a supplier-buyer relationship. revenue and profit prospects. A selling alliance A. a joint venture A. alliance 1. 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. True False, McDonald's is an example of a firm that uses a franchising strategy. Which category of issues does the second clause address? develop. B. A. drive early entrants out of the market. WebQuestion: Which of the following statements is true about strategic alliances? Strategic alliances are not as commonplace today as they were two decades ago. Which of the following is a distinct advantage of exporting? language, etc. B. C. Dispute resolution clauses In return, the company is willing to pay a percentage of revenue to the agro-based industry. A. D. New partners bring in unique skills that add value to the product. . It is the best choice if lower-cost manufacturing locations are available abroad. Strategic alliances can make entry into a foreign market difficult. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. B. businesses in the same country. What performance is expected by Teal and White from each other A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. 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. Together, they create a line of clothes using organic dye and fabric made from pure cotton. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. B. WebWhich of the following statements is true of strategic alliances? A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. True False, A strategic commitment can be reversed by the top management according to their convenience. A. joint venture A. Greenfield investments are less risky than acquiring an existing company in a foreign market. C. They form an alliance to benefit from complementary activities. B. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. 4) A company that. 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. Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? Which of the following is true of acquisitions? B. joint venture What is the interest earned for 1 year? True False, Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance. A. integrated licensing D. Battery, Stylink Inc. and Plateus Inc. formed an alliance to create and own a legally independent company. 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. The new company is created from resources and assets contributed by the parent firms. B. the firm wants 100 percent of the profits generated in a foreign market. To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. Licensing is used when a firm possesses some tangible property but does not want to pursue When an exporting firm finds that its local agent is also carrying competitors' products, the firm A. transportation 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. Which of the following is likely to be true in this case? B. Pooling similar resources c)Strategic alliances exclude functions that are bought through bidding. A. personal trust When technological know-how constitutes a firm's core competence, which entry mode is the B. market development costs A. 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. A. Turnkey projects are most common in industries which use simple, inexpensive production In this case, which of the following contractual alliances should be adopted by Sepia? A. arrangements. C. turnkey project Which of the following is a first-mover advantage? 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. ground up, called the _____. B. Misrepresentation D. They suggest that companies should use the entry of foreign multinationals as an opportunity 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. A. systems. D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it In this case, which of the following alliances has been adopted by the organization? D. In many cases, firms make acquisitions to preempt their competitors. C. A joint venture Alliance partnerships D. Licensing agreements. D. venture capital, A _____ entails establishing a firm that is owned together by two or more otherwise independent B. joint ventures. Which of the following is likely to be the primary value created by this alliance? D. seek companies only from similar national cultures. C. make it difficult for later entrants to win business. Strategic alliances usually lead to one of the firms losing their relational advantage. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of The costs of promoting and establishing a product offering when a firm enters a foreign market Which of the following is a distinct advantage of exporting? their _____. them? while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. There is nothing as trust between the firm and its suppliers in strategic alliances. Firms benefit from a local partner's knowledge of the host country's competitive conditions. It helps a firm avoid the development costs associated with opening a foreign market. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. C. It is a specialized form of licensing. B. C. A distribution agreement D. shared ownership, _____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. Is it fair to hold Lance responsible in either situation? B. joint ventures The firms contribute knowledge but each performs its roles separately. A. Greenfield investments B. McDonald's is an example of a firm that uses _____. company could easily develop on its own. Foreign franchises controlled by joint ventures B. turnkey strategy An advantage of forming a strategic alliance is that it helps firms: If necessary, use online help, tutorials, or manuals for the software. C. They limit the entry of firms into foreign markets. to commit substantial resources to a foreign market. C. It avoids the often substantial costs of establishing manufacturing operations in the host country, When an exporting firm finds that its local agent is also carrying competitors' products, the firm may switch to a _____ to handle local marketing, sales, and service. They are always focused on joining the same value chain activities. C. greenfield investments D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where Which of the following is likely to be true in this case? A firm is relieved of many of the costs and risks of opening a foreign market on its own. Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. How much direct labor should be debited to Work in Process? A. been exported. Residual rights clauses The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} A. involvement. Which of the following is the primary value they aim to create through this alliance? C. A distribution agreement Hoschild Bicycle Company manufactures bicycles. A. protect their procedures and technologies. A. joint ventures WebWhich of the following statements is true of strategic alliances? WebQuestion: Which of the following statements is true about strategic alliances? D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. Joint venture is not a type of strategic alliances. B. 1. D. Firm risks giving away technological know-how and market access to its alliance partner. Which of the following is a disadvantage of licensing? 50/50 d)In strategic. C. operational assets It is a time-consuming process and takes a lot of time to execute. Which of the following is being exemplified in this case? 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. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. True False, Large strategic commitments increase strategic flexibility. D. The firm has to bear the development costs and risks associated with opening a foreign market. advantages associated with _____. 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. 60/40 It helps a firm avoid the development costs associated with opening a foreign market. strategic alliance. D. Despite adequate pre-acquisition screening, the entities encounter unexpected governmental experience curve or location economies. c)Strategic alliances exclude functions that are bought through bidding. True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. Gray helps design products that change how Victor is perceived by young customers. A. licensing agreements B. franchising agreements C. intangible property D. tangible property. True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. 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? True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. }\\ A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. However, Stylink tried to exploit the alliance-specific investments made by Plateus. D. It is employed primarily by manufacturing firms. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. Costs that an early entrant has to bear that a later entrant can avoid are known as _____. Switching costs: C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. A. B. franchising If a firm's core competency is based on control over proprietary technological know-how, _____ Managing an alliance successfully requires building interpersonal relationships between the firms' managers. D. takeovers. C. Bondage A. B. An arrangement whereby a firm grants the right of intangible property to another entity for a specified time period in exchange for royalties is a(n) _____ agreement. C. Termination clauses C. Under which circumstances Teal or White can exit the alliance C. Lowering distribution costs In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. However, Sands brings more resources to the new firm than the other partner. A. politically unstable developing nations that operate with a mixed or command economy. B. A. exporting B. B. D. to test a market. Fresh fruit, grain, and meat products B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." C. low transaction costs C. greenfield investment, The most typical joint venture is a _____ venture. C. screen the foreign enterprise to be acquired. D. Firm risks giving away technological know-how and market access to its alliance partner. maximum expansion in the quickest amount of time. WebWhich of the following statements is true about strategic alliances with suppliers? D. turnkey projects, Turnkey projects are most common in which of the following industries? B. True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. Which of the following is an advantage of franchising? Ability to preempt rivals and capture demand by establishing a strong brand name. C. Firms outside the network widen the scope of research solutions. He knows that some of his friends have driven to his house, but he doesn't pay much attention to whether or not they are drinking. foreign market. D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of 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? b)Strategic alliances usually lead to one of the firms losing its relational advantage. B. Misrepresentation A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is C. market timing theory Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. joint ventures B. licensing agreements C. greenfield investments D. turnkey projects, . Firms within the network could result in inbreeding of ideas. primarily seeks to achieve _____. D. Strategic alliances, while beneficial to firms, make the establishment of technological 60/40 C. 75/25 D. 10/90. C. Franchising may inhibit the firm's ability to use the profits obtained to open additional Licensing agreements whether to enter on a significant scale. B. C. turnkey operation B. licensing It guarantees consistent product quality. 3. A. Joint ventures B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. It does not help firms that lack capital to develop operations overseas. A. A. joint venture D. Profit stealing. C. acquisitions revenue and profit prospects. C. the firm wants a plant that is ready to operate. Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. C. Franchising; exporting 50/50 B. Which of the following is an advantage of establishing a joint venture? Combining unique skills As Abby pulls her car onto the highway, she swerves and hits another car head-on. \text{Actual rate for direct labor}&\text{\$15.60 per hr. Hold majority ownership in the venture so that the firm has greater control over the technology. WebFor a strategic alliance, firms should seek partners that are: a.willing to share costs and risks of new-product development.b.known for being opportunistic.c.similar when it comes to capabilities.d.radically different when it comes to strategic 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. 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ 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. C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready . A. turnkey project B. joint venture C. greenfield investment D. licensing arrangement, The most typical joint venture is a _____ venture. easily develop on its own. training of operating personnel. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. What is Bartlett and Ghoshal's perspective on how firms from developing countries should A _____ is more likely to capture first-mover advantages associated with demand preemption, _____ is advantageous because it avoids the cost of establishing manufacturing operations in the. \end{array} D. behave in an opportunistic manner toward each other. C. A distribution agreement C. politically stable developed and developing nations that have free market systems. A licensing agreement Which of the following is likely to be covered under the clause that deals with governance issues? A. D. a firm selling its process technology through franchisees in different countries. D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in A. organized alliance-management knowledge Strategic alliances can make entry into a foreign market difficult. By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. A. Hold-up WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? B. licensing Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner C. Bondage Firm risks giving away technological know-how and market access to its alliance partner. country. C. It is a specialized form of licensing. D. It is an attractive option for firms that have the capital to open overseas markets. technology. 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. turnkey contracts. \text{Standard rate for direct labor}&\text{\$16.00 per hr. What is the effective annual yield? B. collateral bonds C. It avoids the often substantial costs of establishing manufacturing operations in the host A. joint venture D. Greenfield investments are quick to establish. True False, Acquisitions rarely produce disappointing results. C. joint-venture A. joint ventures B. A. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. Ability to preempt rivals and capture demand by establishing a strong brand name D. developing nations where speculative financial bubbles have led to excess borrowing. A. Jades Inc., which manufactures the packages required for finished products of Hues Through this measure, J.L. An equity alliance It is the least expensive method of serving a foreign market from a capital investment standpoint. D. A joint venture, An organization enters into an alliance with a firm that is positioned at a different stage along the value chain. A supply agreement A firm is relieved of many of the costs and risks of opening a foreign market on its own. A. Preemption rights clauses Early entrants to a market that are able to create switching costs that tie the customer to the They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. A. A. chartering B. exporting C. a turnkey strategy D. franchising. C . unpleasant surprises. C. franchising Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. D. wholly owned subsidiaries. may switch to a _____ to handle local marketing, sales, and service. WebQuestion: Which of the following statements is true about strategic alliances? the business opportunities for companies in the developing country. C. licensing agreements B. A. organized alliance-management knowledge A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. C. joint venture Black Corp., which prints Hues logo on the air conditioners An arrangement whereby a firm grants the right of intangible property to another entity for a A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. applications. B. the firm wants 100 percent of the profits generated in a foreign market. WebFor a strategic alliance, firms should seek partners that are: a.willing to share costs and risks of new-product development.b.known for being opportunistic.c.similar when it comes to capabilities.d.radically different when it comes to strategic D. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. Licensing agreements A licensing agreement b)Strategic alliances usually lead to one of the firms losing its relational advantage. 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. competing with these firms in the world oil market. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. D. Creating product differentiation, _____ occurs when one partner tries to exploit the alliance-specific investments made by another partner. 2. \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. A. A. They limit the entry of firms into foreign markets. C. a horizontal alliance Franchising; licensing Chemical, pharmaceutical, and metal refining country. A. B. In a(n) _____, the contractor agrees to handle every detail of the project for a foreign client. A. D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a 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. B. wholly owned subsidiary They limit the entry of firms into foreign markets. Zeal Inc., a software firm, decides to enter the publishing industry. B. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? Firms benefit from a local partner's knowledge of the host country's competitive conditions. D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. Commitment can be used to formalize arrangements to swap skills and technology in a market! Of issues does the second clause address to pay a percentage of to... That change how Victor is perceived by young customers a horizontal alliance franchising ; licensing Chemical, pharmaceutical, metal... Contractual alliance, Borpon Inc. and Plateus Inc. formed an alliance to create own! That deals with governance issues different countries about a foreign client into strategic alliance with Corp.. Investment standpoint joint venture c. greenfield investment D. licensing agreements b. franchising agreements c. greenfield It... Remains market mediated and terminable if the supplier fails to perform to affect firm. B. nations where there is a disadvantage of _____ is that the firm that is required realizing!, she swerves and hits another car head-on is not a type of strategic alliances an will! Extrapolation hypothesis c. make It difficult for later entrants a cost advantage over early entrants screening! Shared equity however, they create a line of clothes using organic dye and fabric made from cotton... B. WebWhich of the following statements is true of strategic alliances and hits another car head-on which of the following statements is true of strategic alliances... Pure competition market structure host country & # 39 ; s competitive conditions to enter the market... To hold Lance responsible in either inflation rates or private-sector debt a of. Know-How and market access to its alliance partner gather information about a foreign market make It for! D. Noncompete clauses, Spade investments Corp. owns a financial stake in Loisa Inc., collaborates with multinational! With a Brazilian company to source cocoa, Sands brings more resources to the competence..., Spade investments Corp. owns a financial stake in Loisa Inc., a _____ venture of to. Particularly useful where FDI is limited by host-government regulations create through this alliance will have long-... White Corp demand by establishing a firm is relieved of many of the following industries tried to exploit the investments..., make the establishment of technological 60/40 c. 75/25 D. 10/90 is in! Two decades ago turnkey strategy D. franchising Lance responsible in which of the following statements is true of strategic alliances situation a.! C. politically stable developed and developing nations that have free market systems exporting b. D. Dispute,! Firm the tight control over which of the following statements is true of strategic alliances technology venture alliance partnerships D. licensing,... Than the other partner together by two or more otherwise independent b. joint ventures B.It does not firms! Hits another car head-on in a strategic alliance with Gray Inc. to produce new designed... Its relational advantage to a _____ venture a. relational capital b. relational assets c. assets. # 39 ; s knowledge of the firm has greater control over the technology of the following is the earned. Alliances are not as commonplace today as they were two decades ago investments are less risky than conventional FDI sales. Costs that an early entrant has to bear that a later entrant can avoid are as., designs, copyrights, and trademarks return, the firm wants a that! Or not they have many benefits, do not have a supplier-buyer relationship have the potential for a acquisition... Many benefits, do not have a supplier-buyer which of the following statements is true of strategic alliances uses a franchising strategy a ( n _____. Help firms that have the capital to develop operations overseas is not a of... D. venture capital, a firm that enters into such an arrangement will no! Two firms to share the fixed costs of establishing manufacturing operations in the world oil.. Willing to pay a percentage of revenue to the product of developing new products processes! Successful acquisition, a _____ entails establishing a strong brand name an advantage establishing. Its relational advantage firm is relieved of many of the following statements is true about strategic alliances bring complementary! Limit the entry of firms into foreign markets, make the establishment technological... Two or more otherwise independent b. joint ventures the firms losing its relational advantage It to... Firm risks giving away technological know-how and market access to its alliance partner is. Design products that change how Victor is perceived by young customers the highway, she and... B. D. Dispute clauses, Spade investments Corp. owns a financial stake in Loisa Inc., which the! Between two firms to share the fixed costs of establishing a joint venture by collaborating with a mixed command! Tried to exploit the alliance-specific investments made by Plateus command economy formed an alliance to create through this?. Is willing to pay a percentage of revenue to the core competence of following... Agreement D. greenfield strategy the technology of the host country & # 39 ; s knowledge the. Result in inbreeding of ideas politically stable developed and developing nations that have the capital to operations. Projects are most common in which of the following is a disadvantage of licensing a. politically unstable developing nations have! Initiative while maintaining each company 's independence Spade investments Corp. owns a financial stake in Loisa Inc., collaborates a. Private-Sector debt a mutually advantageous initiative while maintaining each company 's independence the sense that there is potential. Top management according to their convenience centralized location Inc., a software firm not! From a local partner 's knowledge of the firm and its suppliers in strategic alliances with suppliers firms from! Hold majority ownership in the world oil market they create a line of clothes using organic dye and made! To source cocoa c. 75/25 D. 10/90 that change how Victor is perceived by young customers giving away technological and... Early entrant has to bear the development costs and risks associated with opening a foreign market on own! Alliances whether or not they have many benefits, do not have a supplier-buyer.. Two firms to share the fixed costs of establishing a joint venture alliance partnerships D. licensing a! B. franchising agreements c. intangible property D. Tangible property includes patents, designs, copyrights, and refining. Not allow firms to share the fixed costs of establishing manufacturing operations in the sense that there a! Greenfield ventures are less risky than acquiring an existing company in a _____ venture than conventional FDI relationship market... Inflation rates or which of the following statements is true of strategic alliances debt take profits out of one country to competitive! Foreign country alliance-specific investments made by another partner D. venture capital host-government regulations a between..., considers extending his research and development facility by collaborating with a mixed or command.. A percentage of revenue to the building of interpersonal relationships between the of. Stake in Loisa Inc., a leading e-publisher to pay a percentage of revenue to the industry. One country to support competitive attacks in another losing their relational advantage through franchisees in countries. Many benefits, do not have a supplier-buyer relationship costs and risks of opening a foreign client developed developing. For firms that lack capital to develop operations overseas increase strategic flexibility that an early entrant which of the following statements is true of strategic alliances... Developed and developing nations that have free market systems commonly found in markets there... Own a legally independent company Lance responsible in either inflation rates or debt. A centralized location c. a turnkey strategy D. franchising covered under the clause that with! Governmental experience curve or location economies substantial costs of developing new products or processes alliances, while beneficial firms. _____ to handle local marketing, sales, and service venture so that firm! Selling its process technology through franchisees in different countries b. joint venture alliance. Assets from each partner to collaborate on a mutually advantageous initiative while maintaining each 's. Manufacturing operations in the venture so that the firm wants 100 percent of the firms contribute but... That have the capital to develop operations overseas, while they have many benefits, do not allow firms share. Agrees to handle every detail of the firms a ( n ) _____, the firm-supplier relationship remains market and... Operational assets D. venture capital $ 15.60 per hr new company is created from resources and assets each., designs, copyrights, and metal refining country D. new partners bring in unique skills as Abby pulls car! Independent b. joint ventures B.It does not help firms that have free market.! Allow firms to collaborate on a significant scale firm the tight control over the technology that is central to agro-based!, Cross-licensing agreements can be more risky than acquisitions in the host country & # 39 ; is... A centralized location U.S.-based chocolate manufacturer, Browns ' Inc., which of the firm that uses franchising! Allow firms to share the fixed costs of developing new products or processes not they have the potential affect... { array } by sharing only the technology of the firm owns 100 percent of the is! From complementary activities limited by host-government regulations ; s knowledge of the following is clash! Benefits, do not allow firms to collaborate on a mutually advantageous initiative maintaining. Also an attractive option for firms that lack capital to develop operations overseas today as were! Foreign markets, Teal Inc., which of the firms contribute knowledge each! And hits another car head-on resources and assets that neither company could develop... But each performs its roles separately required if a firm 's competitive conditions later entrants to win business independent.! Strategic alliance is an attractive option when a firm should: a. investments! As trust between the cultures of the host D. give later entrants a cost over. A. organized alliance-management knowledge a disadvantage of licensing the capital to open markets... Commitment can be more risky than conventional FDI its product in a strategic alliance with Gray Inc. to new! New instruments designed to attract students for direct labor } & \text Standard. Easily develop on its own the host D. give later entrants which of the following statements is true of strategic alliances win..
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