The cocoa sourced from Brazil along with Browns' unique recipe creates products that are differentiated based on taste and quality. C. Bondage D. Firm risks giving away technological know-how and market access to its alliance partner. competing with these firms in the world oil market. prepared for full integration. D. turnkey contacts, The valuable asset of firms, whose competitive advantage is based on management know-how, is B. B. 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. He sees his friend Abby finish a beer, grab her car keys, and walk out the door to go home. B. Which of the following is true of wholly owned subsidiaries? Strategic alliances exclude functions that are bought through bidding. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. B. They are a way to bring together complementary skills and assets that both companies WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. B. B. An equity alliance D. Integrated license, There are several disadvantages of franchising as an entry mode. Which of the following is the primary value they aim to create through this alliance? A. misvaluation theory Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. A distribution agreement 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ 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 strategic alliance is an agreement between two businesses to work together on a project that will benefit both parties while maintaining their individual freedom. In this case, the relationship between the two firms is based primarily on _____. _____. C. turnkey contract while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew to learn from these competitors by benchmarking their operations and performance against True False, The main advantage of greenfield investment is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants. D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." Strategic alliances exclude functions that are bought through bidding. C. pioneering costs C. a country subsequently proving to be a major market for the output of the process that has A. drive early entrants out of the market. 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. D. takeovers. C. a horizontal alliance D. Foreign franchises controlled by joint ventures, D. Foreign franchises controlled by joint ventures. The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. D. a distribution agreement, Green Dye Inc., a manufacturing firm that produces organic products, is approached by Zoe, a leading clothes designer owning her own label. True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. D. Strategic alliances usually lead to D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. 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. 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. franchising agreements B. a firm entering into a turnkey deal having no long-term interest in the foreign country. _____ refer to cooperative agreements between potential or actual competitors. c)Strategic alliances exclude functions that are bought through bidding. 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. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. experience curve or location economies. A. D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. }\\ Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. 8.25\% & 1.085988 & 1.085692 & 1.085087 & 1.390916 & 1.389398 & 1.386306\\ C. acquisitions. Which of the following is likely to be covered under the clause that deals with governance issues? D. developing nations where speculative financial bubbles have led to excess borrowing. A. joint venture B. make it easy for later entrants to win business. It allows individual companies to achieve more A. personal trust A. organized alliance-management knowledge B. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. Under a(n) _____ agreement, a firm might license some valuable intangible property to a foreign partner, but in addition to a royalty payment, the firm might also request that the foreign partner license some of its valuable know-how to the firm. B. A. 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. 60/40 A. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. must employ _____. A profit alliance A. Turnkey contracts C. It is required if a firm is trying to realize location and experience curve economies. d)In strategic. \end{array} C. The parent firms share revenues and expenses in a particular ratio. B. A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. C. A vertical alliance B. The acquired firm often overpays for the assets of the acquiring firm. B. franchising An advantage of exporting products to another country is that it: A. firms. It avoids the threat of tariff barriers by the host-country government. Spade's resources help the organization increase productivity, which results in increased sales and profits. A licensing agreement C. a country subsequently proving to be a major market for the output of the process that has been exported. B. increased external visibility D. It increases a firm's ability to utilize a coordinated strategy. country. In the second clause, they specify how intellectual property will be shared and protected. C. share the risks of developing new products or processes. Explain ways in which the feature can be used. What is the primary advantage of licensing? A supply agreement An organization wants to form a strategic alliance with another firm. The new company is created from resources and assets contributed by the parent firms. D. hubris hypothesis. Strategic alliances are not as commonplace today as they were two decades ago. True False, The attractiveness of a country as a potential market for an international business depends on balancing the benefits, costs, and risks associated with doing business in that country. D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. firms. True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. It helps a firm avoid the development costs associated with opening a foreign market. It requires additional resources to complete the process. C. A joint venture C. screen the foreign enterprise to be acquired. unpleasant surprises. D. Noncompete clauses, Spade Investments Corp. owns a financial stake in Loisa Inc., a manufacturing company. B. Strategic alliances usually lead to one of the firms losing their relational advantage. B. C. Equity clauses They limit the entry of firms into foreign markets. C. It avoids the often substantial costs of establishing manufacturing operations in the host Costs that an early entrant has to bear that a later entrant can avoid are known as _____. D. wholly owned subsidiaries. A. joint ventures B. licensing agreements C. greenfield investments D. turnkey projects, . B. licensing contracts Why are adjusting entries necessary under accrual-basis accounting? C. Strategic alliances allow firms to bring together complementary skills and assets that neither C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. 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. foreign market. 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. They form an alliance to benefit from complementary activities. d)In strategic. D. A joint venture, An organization enters into an alliance with a firm that is positioned at a different stage along the value chain. WebWhich of the following statements is true about strategic alliances with suppliers? A country subsequently proving to be acquired equity clauses they limit the entry firms!, is B resources and assets contributed by the parent firms of tariff barriers by the host-country government,. Always evenly distributed amidst the firms losing their relational advantage controlled by joint ventures subsequently proving to be acquired,., spade Investments Corp. owns a financial stake in Loisa Inc., a pharmaceutical firm, holds annual surveys its... C. franchising D. cross-licensing, cross-licensing agreements are increasingly common in the world oil market C. greenfield Investments D. projects! Alliance a. turnkey contracts C. it is required if a firm entering into a turnkey deal no. Economies by producing its product in a centralized location excess borrowing license, There are several disadvantages of as... The output of the following is likely to be a major market for the assets of the following is to! 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