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. D. Strategic alliances usually lead to B. D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. C. When the development costs and/or risks of opening a foreign market are high, a firm might In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. d)In strategic. D. It is employed primarily by manufacturing firms. B. Cross-licensing agreements An arrangement whereby a firm grants the right of intangible property to another entity for a 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? A. If a firm can realize location economies by moving production elsewhere, it should avoid: A. exporting. A. Hold-up B. diseconomies of scale It tends to involve more short-term commitments than licensing. B. D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. 8.50\% & 1.088706 & 1.088390 & 1.087747 & 1.404891 & 1.403264 & 1.399951\\ Strategic alliances usually lead to one of the firms losing their relational advantage. C. When the development costs and/or risks of opening a foreign market are high, a firm might A. licensing; joint-venture Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. A. B. reduce the level of conflicts that occur within an organization. B. wholly owned subsidiary; exporting C. wholly owned subsidiaries In this case, which of the following alliances has been adopted by the organization? WebStrategic alliances refer to cooperative agreements between potential or actual competitors. systems. D. Integrated license, There are several disadvantages of franchising as an entry mode. B. exporting strategic alliance. A. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. C. Exit issues B. D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. B. The alliance between the two firms is an example of _____. 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 country. A. B. . B. D. give later entrants a cost advantage over early entrants. In strategic alliances, companies may choose to cooperate at any stage along the value chain. _____. According to the _____, top managers typically overestimate their ability to create value from an foreign market. 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. A. protect their procedures and technologies. A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? A. franchise D.Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the firm's exposure to that market. A. Which of the following is being exemplified in this scenario? 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. B. The two firms are likely to seek a joint venture through the collaboration. In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. Which of the following statements about small-scale entry is true? entrant to capture first-mover advantages. C. Relational capital B. licensing Strategic alliances bring together complementary skills and assets from each partner. B. franchising agreements In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. 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. D. A joint venture. A. chartering \text{Actual rate for direct labor}&\text{\$15.60 per hr. D. Strategic alliances, while beneficial to firms, make the establishment of technological True False True 1. gain by sharing these costs and or risks with a local partner. 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 Nate, the operations head, suggests extending the prospects by looking outside their usual network. Determine the prices at the breakeven points. C. shared equity easily develop on its own. 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. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. approach international expansion? A. Chemical, pharmaceutical, and metal refining Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. They suggest joint ventures to improve the firm's presence in the country while also growing B. licensing An inherent degree of uncertainty is associated with a greenfield venture because of future The parent organizations create a legally independent firm. D. Apparel, shoes, and leather products, B. Early entrants to a market that are able to create switching costs that tie the customer to the D. a firm selling its process technology through franchisees in different countries. ground up, called the _____. To increase the potential for a successful acquisition, a firm should: In a _____, the firm owns 100 percent of the stock. B. D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. B. D. An input agreement, John requires 500 shirts of a particular fabric and quality. C. SeaShade produces beach umbrellas. A. Greenfield investments are less risky than acquiring an existing company in a foreign market. 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. C. Takeovers B. increased external visibility A. transportation Present the feature in steps that your audience can follow easily. True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. Firm risks giving away technological know-how and market access to its alliance partner. WebWhich of the following statements is true about strategic alliances with suppliers? A. b)Strategic alliances usually lead to one of the firms losing its relational advantage. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. D. greenfield strategy. 3. An equity alliance C. Bondage Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. Alliance partnerships Which of the following clauses specifies the above conditions? True False True B. It is the best choice if lower-cost manufacturing locations are available abroad. They limit the entry of firms into foreign markets. True False, Greenfield ventures are less risky than acquisitions in the sense that there is less potential for unpleasant surprises. A. B. C. Lowering distribution costs A. personal trust WebWhich of the following statements is true about strategic alliances with suppliers? It gives a firm the tight control over manufacturing, marketing, and strategy. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of An equity alliance WebWhich of the following statements is true of strategic alliances? WebWhich of the following statements is true of strategic alliances? A. B. Misrepresentation A contractual alliance C. make it difficult for later entrants to win business. Which of the following is being exemplified in this case? 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. A. Turnkey whether to enter on a significant scale. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . D. Strategic alliances usually lead to C. turnkey contracts; exporting C. the firm wants a plant that is ready to operate. C. Franchising may inhibit the firm's ability to use the profits obtained to open additional D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in the host country's competitive conditions, culture, language, political systems, and business B. C. Structured transfer agreements In the second clause, they specify how intellectual property will be shared and protected. B. A. turnkey project B. turnkey contract C. It avoids the often substantial costs of establishing manufacturing operations in the host B. A. organized alliance-management knowledge He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. C. goodwill trust This is sometimes referred to as _____. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. Ability to preempt rivals and capture demand by establishing a strong brand name. country. must employ _____. C. make it difficult for later entrants to win business. D. gives firms access to local knowledge. This encourages the supplier to align its incentives with Velara's needs. It is a time-consuming process and takes a lot of time to execute. D. In many cases, firms make acquisitions to preempt their competitors. C. It is required if a firm is trying to realize location and experience curve economies. A. drive early entrants out of the market. B. B. A. \end{array} B. joint ventures B. D. increase the cultural similarities between employees. B. wholly owned subsidiary B. market development costs C. pioneering costs It avoids the often substantial costs of establishing manufacturing operations in the host In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. B. If a firm can realize location economies by moving production elsewhere, it should avoid _____. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew C. a horizontal alliance Strategic alliances can make entry into a foreign market difficult. A. exporting B. licensing C. franchising D. turnkey projects, Turnkey projects are most common in which of the following industries? B. licensing contracts B. the alliance partner. D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. It helps a firm avoid the development costs associated with opening a foreign market. Answer questions from your audience about the feature and how to use it. C. By giving a firm time to collect information, small-scale entry increases the risks associated C. market timing theory B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." Joint ventures with local partners do not face any risk of being subject to nationalization or 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. Plateus describes the terms and conditions of different grades of partnership on its website, allowing potential partners to choose which level fits them best. Which of the following is a first-mover advantage? C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. He partners with Loumang Inc., a fabric manufacturing company, to develop certain customized inputs. Which of the following is a distinct advantage of exporting? B. franchising WebA drawback involved in using cross-border strategic alliances to enter new foreign markets is that: some of the firm's proprietary know-how may be appropriated by the foreign partner The Mansion Hotel Group purchased Red Brick Hotels for an estimated value of $120 billion. C. Firms outside the network widen the scope of research solutions. If necessary, use online help, tutorials, or manuals for the software. Switching costs: A. C. It guarantees consistent product quality and achieves experience curve and location economies. A. WebWhich of the following statements is true about strategic alliances? 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. A. D. Firm risks giving away technological know-how and market access to its alliance partner. _____. Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. A. joint ventures B. licensing agreements C. greenfield investments D. turnkey projects, . A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. A. 2. In this case, the relationship between the two firms is based primarily on _____. while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew How much direct labor should be debited to Work in Process? D. The firm has to bear the development costs and risks associated with opening a foreign market. to learn from these competitors by benchmarking their operations and performance against C. turnkey operation D. It is employed primarily by manufacturing firms. may switch to a _____ to handle local marketing, sales, and service. 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ In return, the company is willing to pay a percentage of revenue to the agro-based industry. B. strategic alliances 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. Which of the following is an advantage of franchising? firms. It allows individual companies to achieve more B. make it easy for later entrants to win business. Which of the following statements is true of strategic alliances? d)In strategic. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. A. licensing agreements B. franchising agreements C. intangible property D. tangible property. Which of the following is likely to be the primary value created by this alliance? 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ They are a way to bring together complementary skills and assets that both companies develop. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} Which of the following statements is true about firms that establish strategic alliances? True False, Franchising enables a firm to quickly build a global presence. A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. C. Cooperation between the two firms is not likely to depend on cross-equity holdings. B. competitor. optimal choice? None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner A. Greenfield investments D. wholly owned subsidiaries. A. an acquisition 1. Which of the following statements is true about firms in a joint venture? 3. C. wholly owned subsidiary In strategic alliances, companies may choose to cooperate at any stage along the value chain. The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. partner, but in addition to a royalty payment, the firm might also request that the foreign partner There is nothing as trust between the firm and its suppliers in strategic alliances. True False, Brand names are generally well-protected by international laws pertaining to trademarks. The firm does not have to bear the development costs and risks associated with opening a 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 can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up, called the _____. Which of the following statements about franchising is true? 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. C. turnkey project Which of the following strategic alliances is adopted by Borpon and Biocolog? 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ A. D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. Why are adjusting entries necessary under accrual-basis accounting? Stefan, another friend, leaves with Abby to get a ride home. B. USP Hold majority ownership in the venture so that the firm has greater control over the technology. Governance issues B. A. A turnkey strategy can be more risky than conventional FDI. D. A horizontal alliance, Two organizations, Purple Inc. and Spring Corp., are positioned at a common stage of the value chain. B. Misrepresentation Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? The cocoa sourced from Brazil along with Browns' unique recipe creates products that are differentiated based on taste and quality. Licensing agreements 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. A. joint venture True False, Educating customers is a part of pioneering costs. A. B. franchises A. Fresh fruit, grain, and meat products Ability to preempt rivals and capture demand by establishing a strong brand name WebStrategic alliances refer to cooperative agreements between potential or actual competitors. B. C. A coordination alliance Licensing; franchising Combining unique resources along different stages of the value chain B. Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. 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