They are less risky than greenfield ventures in the sense that there is less potential for Black Corp., which prints Hues logo on the air conditioners In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. This is an example of: It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. A. C. low transaction costs revenue and profit prospects. C. turnkey project 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 _____. 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . A. partner contributes to the venture. Joint venture is not a type of strategic alliances. A. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge 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? It avoids the threat of tariff barriers by the host-country government. It does not help firms that lack capital to develop operations overseas. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. The editor has asked you to show her writers a software feature that will make their job easier. As Abby pulls her car onto the highway, she swerves and hits another car head-on. If a firm's core competency is based on control over proprietary technological know-how, _____ Which of the following is one of Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. Which of the following is being exemplified in this case? A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up, called the _____. A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. A. A. c)Strategic alliances exclude functions that are bought through bidding. technological know-how, which of the following entry strategy is best? A. 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. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. with a subsequent large-scale entry. A. legal contracts Firms within the network could result in inbreeding of ideas. C. They limit the entry of firms into foreign markets. D. give later entrants a cost advantage over early entrants. Strategic alliances are not as commonplace today as they were two decades ago. A. It helps a firm avoid the development costs associated with opening a foreign market. foreign market. A. wholly owned subsidiary D. Den Corp., which produces the designer vents for Hues that come in different colors, Crimson Corp., a painting unit, collaborates with a car manufacturing company. A licensing agreement C. screen the foreign enterprise to be acquired. C. A joint venture Firms entering markets where there are no incumbent competitors to be acquired should choose D. Profit stealing. It forms a strategic alliance with Gray Inc. to produce new instruments designed to attract students. D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. Which of the following statements about franchising is true? optimal? A. Turnkey contracts A. always bid low to allow for partial failure. C. Firms outside the network widen the scope of research solutions. B. USP D. to test a market. A licensing agreement 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. C. faces less trade barriers. B. a vertical alliance D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it C. Equity clauses A. first-mover advantages. A. B. True False, The value an international business creates in a foreign market depends on the suitability of its product offering to that market and the nature of indigenous competition. firm's exposure to that market. In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. WebWhich of the following statements is true of strategic alliances? In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. C. make it difficult for later entrants to win business. D. Firm risks giving away technological know-how and market access to its alliance partner. True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where A. misvaluation theory D. It is particularly useful where FDI is limited by host-government regulations. C. By giving a firm time to collect information, small-scale entry increases the risks associated It gives a firm the tight control over manufacturing, marketing, and strategy. A. D. turnkey contract. Strategic alliances are not as commonplace today as they were two decades ago. B. Which of the following is a disadvantage of licensing? In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. turnkey contracts B. WebWhich of the following is true of strategic alliances? _____. 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. 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ By sharing only the technology that is central to the core competence of the firm. Joint ventures with local partners do not face any risk of being subject to nationalization or other forms of adverse government interference. When technological know-how constitutes a firm's core competence, which entry mode is the C. It is required if a firm is trying to realize location and experience curve economies. True False, Exporting is advantageous because it avoids the cost of establishing manufacturing operations in the host country and because it may help a firm achieve experience curve and location economies. WebWhich of the following statements is true of strategic alliances? language, etc. A. Hold-up 4. Strategic alliances can make entry into a foreign market difficult. A licensing agreement 4. How intellectual property will be shared by Teal and White Fresh fruit, grain, and meat products C. They limit the entry of firms into foreign markets. Situation You are the assistant information technology manager for a local newspaper. A. Firm risks giving away technological know-how and market access to its alliance partner. True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. A. Jades Inc., which manufactures the packages required for finished products of Hues Which of the following is the primary value they aim to create through this alliance? D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc. A. alliance D. hubris hypothesis. C. It is a specialized form of licensing. C. Franchising; exporting C. 75/25 B. B. C. operational assets B. pioneering costs. C. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. businesses in the same country. firms. Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. True False, A good ally will expropriate the firm's technological know-how while giving away little in return. A. It is the best choice if lower-cost manufacturing locations are available abroad. involvement. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. C. construction C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. standpoint. Joint venture is not a type of strategic alliances. 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. 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. Which of the following is true of wholly owned subsidiaries? The arrangement is less complicated and less enforceable than a joint venture, in which two firms combine their resources to form a new company organization. B. turnkey contracts. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. The second firm is at the same level along the value chain. The arrangement is less complicated and less enforceable than a joint venture, in which two firms combine their resources to form a new company organization. B. This is sometimes referred to as ____. Chemical, pharmaceutical, and metal refining A firm is relieved of many of the costs and risks of opening a foreign market on its own. C. Bondage A. an acquisition Explain ways in which the feature can be used. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. B. make it easy for later entrants to win business. D. New partners bring in unique skills that add value to the product. A. joint ventures C. intervention and accountability It gives a firm the tight control over manufacturing, marketing, and strategy. D. developing nations where speculative financial bubbles have led to excess borrowing. B. C. 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