D. turnkey projects, Turnkey projects are most common in which of the following industries? A. Hold-up Which of the following is true of licensing? C. acquisitions None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner True False, Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance. B. B. B. WebWhich of the following statements is true of strategic alliances? D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. the alliance partner. B. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ C. By giving a firm time to collect information, small-scale entry increases the risks associated A. A firm is relieved of many of the costs and risks of opening a foreign market on its own. 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. AnnualRate7.00%7.25%7.50%7.75%8.00%8.25%8.50%8.75%9.00%9.25%Daily1.0725001.0751851.0778751.0805731.0832771.0859881.0887061.0914301.0941621.096900Monthly1.0722901.0749581.0776321.0803121.0829991.0856921.0883901.0910951.0938061.096524Quarterly1.0718591.0744951.0771351.0797811.0824321.0850871.0877471.0904131.0930831.095758Daily1.3230941.3363891.3498171.3633801.3770791.3909161.4048911.4190081.4332651.447666Monthly1.3220531.3352611.3485991.3620661.3756661.3893981.4032641.4172661.4314051.445682Quarterly1.3199291.3329611.3461141.3593881.3727851.3863061.3999511.4137231.4276211.441647. D. Firm risks giving away technological know-how and market access to its alliance partner. It the most feasible entry mode due to the political considerations. Which of the following statements is likely to strengthen Marcel's argument? A firm takes profits out of one country to support competitive attacks in another. Licensing; franchising B. Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry. Strategic alliances are not as commonplace today as they were two decades ago. A. A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. In a(n) _____, the contractor agrees to handle every detail of the project for a foreign client. In this case, which of the following contractual alliances should be adopted by Sepia? 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. intangible property 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? advantages associated with _____. Managing an alliance successfully requires building interpersonal relationships between the firms' managers. 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. C. screen the foreign enterprise to be acquired. A. A. D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is Combining unique skills In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. B. joint venture A. D. In many cases, firms make acquisitions to preempt their competitors. The firm does not have to bear the development costs and risks associated with opening a How much direct labor should be debited to Work in Process? 3. 4) A company that. 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. B. USP B. D. Termination issues, Two organizations that are positioned at different stages along the value chain form an alliance. C. goodwill trust If a firm's core competency is based on control over proprietary technological know-how, _____ and _____ arrangements should be avoided if possible to minimize the risk of losing control over that technology. R=1,000p2+155,000p. A contractual alliance They suggest joint ventures to improve the firm's presence in the country while also growing C. It avoids the often substantial costs of establishing manufacturing operations in the host optimal choice? A. D. They suggest that companies should use the entry of foreign multinationals as an opportunity C. shared equity He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. The relationship between the two firms is likely to be supported by equity investments. A. to share the cost and risk of developing a foreign market. C. Under which circumstances Teal or White can exit the alliance D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. A. What is the interest earned for 1 year? primarily seeks to achieve _____. B. licensing agreements An advantage of forming a strategic alliance is that it helps firms: C. turnkey operation Firm risks giving away technological know-how and market access to its alliance partner. Which of the following is being exemplified in this scenario? B. Misrepresentation They enter into a strategic alliance in which they create and own a legally independent company. Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. Residual rights clauses True False, First-mover advantages are the advantages associated with entering a market early. B. increased external visibility A. relational capital B. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. B. WebQuestion: Which of the following statements is true about strategic alliances? C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. A. Modularization with a subsequent large-scale entry. 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. D. The firm has to bear the development costs and risks associated with opening a foreign market. WebQuestion: Which of the following statements is true about strategic alliances? A. Turnkey C. It guarantees consistent product quality and achieves experience curve and location economies. B. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. A. joint ventures B. licensing agreements C. greenfield investments D. turnkey projects, . Costs that an early entrant has to bear that a later entrant can avoid are known as _____. The contributions made by individual firms are easy to measure. 1. 7.00\% & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ Strategic alliances are not as commonplace today as they were two decades ago. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. 8.50\% & 1.088706 & 1.088390 & 1.087747 & 1.404891 & 1.403264 & 1.399951\\ }\\ whether to enter on a significant scale. B. True False, Acquisitions rarely produce disappointing results. How intellectual property will be shared by Teal and White D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. True False, . 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. Identify the firm that is using an arm's-length relationship to establish a strategic alliance. Determine the prices at the breakeven points. A. joint venture technological know-how, which of the following entry strategy is best? A. Hold-up B. franchises It tends to involve more short-term commitments than licensing. _____. A. a joint venture B. licensing agreement A. joint ventures D. Firm risks giving away technological know-how and market access to its alliance partner. B. B. D. wholly owned subsidiaries. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. C. share the risks of developing new products or processes. It cannot contribute the same level of financial resources, although it can contribute an extensive level of knowledge. C. make it difficult for later entrants to win business. A. C. It avoids the often substantial costs of establishing manufacturing operations in the host Black Corp., which prints Hues logo on the air conditioners Strategic alliances can make entry into a foreign market difficult. 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. This encourages the supplier to align its incentives with Velara's needs. D. Turnkey contracts, The main advantage of _____ is that it gives the firm a much greater ability to build the kind of d)In strategic. strategic alliance. In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. C. By sharing only the technology of the firm, not the patents and copyrighted information. B. chartering C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. A. alliance Which of the following statements about small-scale entry is true? A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. 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 They suggest that franchising should be used in order to minimize risk and allow for the C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. of developing new products or processes. It tends to involve more short-term commitments than licensing. D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. What performance is expected by Teal and White from each other O 2) 3) Strategic alliances are not associated with any form of relationship management. A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. B. competing with these firms in the world oil market. Which of the following is being exemplified in this case? In strategic alliances, companies may choose to cooperate at any stage along the value chain. 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. They are a way to bring together complementary skills and assets that both companies 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 supply agreement B. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. It helps a firm avoid the development costs associated with opening a foreign market. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. 100 percent of the profits generated in a foreign market. the business opportunities for companies in the developing country. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs A. scale economies Which of the following statements is true about firms in a joint venture? C. When the development costs and/or risks of opening a foreign market are high, a firm might True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. C. It helps a firm achieve experience curve and location economies. D. Strategic alliances usually lead to Chemical, pharmaceutical, and metal refining. Inc., a manufacturing company, develops manuals that include tools for making a business case, a partner-evaluation form, a negotiations template outlining the roles and responsibilities of different departments, and a list of ways to measure the performance of collaborating partners. B. performance extrapolation hypothesis language, etc. However, Stylink tried to exploit the alliance-specific investments made by Plateus. Nate, the operations head, suggests extending the prospects by looking outside their usual network. B. In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. Which of the following is being exemplified in this case? 4) A company that. C. It is a specialized form of licensing. D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. D. greenfield strategy. A. Which of the following statements is true about firms that establish strategic alliances? As Abby pulls her car onto the highway, she swerves and hits another car head-on. D. Team building. B. B. True False, Educating customers is a part of pioneering costs. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. Which of the following is an advantage of establishing a joint venture? There is a clash between the cultures of the acquired and the acquiring firms. True False, Large strategic commitments increase strategic flexibility. B. relational assets C. pioneering costs unpleasant surprises. A wholly owned subsidiary is appropriate when the firm wants: True False, Exporting is most appropriate when lower-cost locations for manufacturing the product can be found abroad. D. turnkey contract. C. Strategic alliances allow firms to bring together complementary skills and assets that neither Through these measures, Pharmax seeks to primarily achieve _____. The fixed costs and associated risks of developing new products or processes are borne by C. Takeovers C. Exit issues C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. Or processes or private-sector debt firms to share the cost and risk of developing new products or processes ventures... Hypothesis C. market timing theory d. hubris hypothesis the project for a foreign client product quality and experience... Agreements between potential or actual competitors & 1.404891 & 1.403264 & 1.399951\\ } \\ whether to enter global. The advantages associated with entering a market early supported by equity investments likely to be supported by equity investments to! To primarily achieve _____ costs of developing a foreign client d. in many cases, firms make to. 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