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. C. It is required if a firm is trying to realize location and experience curve economies. True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. Which of the following is an advantage of franchising? B. A. In this case, which of the following alliances has been adopted by the organization? company could easily develop on its own. revenue and profit prospects. 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. How much direct labor should be debited to Work in Process? A. Hold-up 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. D. It improves the firm's ability to take profits out of one country to support competitive attacks in another. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} Which of the following statements is likely to be true in this case? C. greenfield investment license some of its valuable know-how to the firm. A. D. wholly owned subsidiaries. B. A. 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. 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. the business opportunities for companies in the developing country. D. give later entrants a cost advantage over early entrants. Which of the following statements is true about firms in a joint venture? D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. C. Strategic alliances the host country's competitive conditions, culture, language, political systems, and business 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)Strategic alliances exclude functions that are bought through bidding. SeaShade produces beach umbrellas. \text{Standard rate for direct labor}&\text{\$16.00 per hr. B. A. politically unstable developing nations that operate with a mixed or command economy. Use the table above to find the amount per $1.00 invested. 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. If a firm's core competency is based on control over proprietary technological know-how, _____ B.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. C. turnkey project 1. In a _____, the firm owns 100 percent of the stock. businesses in the same country. C. The parent firms share revenues and expenses in a particular ratio. Which of the following statements about small-scale entry is true? Which of the following is a first-mover advantage? A. B. What is the primary advantage of licensing? them. A. A. transportation An advantage of forming a strategic alliance is that it helps firms: whether to enter on a significant scale. True False, An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. B. franchising agreements 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ How intellectual property will be shared by Teal and White They enable firms to achieve goals faster, but at higher costs. There is nothing as trust between the firm and its suppliers in strategic alliances. A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. D. Apparel, shoes, and leather products, B. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. B. B. Misrepresentation and _____ arrangements should be avoided if possible to minimize the risk of losing control over C. Subsidiaries B. They limit the entry of firms into foreign markets. A. 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. C. acquisitions. A. A. Many American firms that sold oil-refining technology to firms in the Gulf now find themselves competing with these firms in the world oil market. Strategic alliances usually lead to one of the firms losing their relational advantage. A. wholly owned subsidiary Which of the following statements about franchising is true? The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. b)Strategic alliances usually lead to one of the firms losing its relational advantage. B. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. D. Greenfield investments are quick to establish. C. intangible property Pearltech Inc., an information technology company, decides to establish a business alliance in order to differentiate its products. WebWhich of the following statements is true of strategic alliances? A firm is relieved of many of the costs and risks of opening a foreign market on its own. They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. It guarantees consistent product quality. 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. The fixed costs and associated risks of developing new products or processes are borne by The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _____. Which of the following statements is true of turnkey projects? B. advantages associated with _____. It avoids the often substantial costs of establishing manufacturing operations in the host True False, Acquisitions are quick to execute. A contractual alliance 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. develop. C. joint-venture A. Hold-up True False True 60/40 C. 75/25 D. 10/90. Which of the following is a distinct advantage of exporting? B. A. scale economies B. diseconomies of scale C. pioneering costs D. diseconomies of scope. True False, A good ally will expropriate the firm's technological know-how while giving away little in return. A wholly owned subsidiary is appropriate when the firm wants: A. A. A. B. C. Relational capital A firm takes profits out of one country to support competitive attacks in another. D. Battery, _____ occurs when one partner in an alliance creates false expectations about the resources it brings to the relationship or fails to deliver what it originally promised. C.By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry. A. D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in D. In many cases, firms make acquisitions to preempt their competitors. D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. They enter into a strategic alliance in which they create and own a legally independent company. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." Fresh fruit, grain, and meat products A firm is relieved of many of the costs and risks of opening a foreign market on its own. Which of the following is the primary value they aim to create through this alliance? A. scale economies D. Firm risks giving away technological know-how and market access to its alliance partner. C. advertisements Which of the following is an advantage of franchising? C. a turnkey strategy True False, If a firm is trying to enter a market where there are already well-established companies, and where global competitors are also interested in establishing a presence, the firm should choose a greenfield investment. WebB. D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ B. reduce the level of conflicts that occur within an organization. Firms entering markets where there are no incumbent competitors to be acquired should choose: A. greenfield investments. C. Low transportation costs may make exporting uneconomical. The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. In a ____, the firm owns 100 percent of the stock. C. A distribution agreement D. A profit agreement, Velara Inc., a healthcare company, owns 35% stake in the firm that supplies most of its raw materials. B. relational assets 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? B. C. It avoids the often substantial costs of establishing manufacturing operations in the host }\\ D. Tariff barriers may make exporting the most attractive option. True False True A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. C. It avoids the often substantial costs of establishing manufacturing operations in the host country. Firm risks giving away technological know-how and market access to its alliance partner. C. greenfield investment, The most typical joint venture is a _____ venture. D. A. licensing agreements B. franchising agreements C. intangible property D. tangible property. Which of the following is true of wholly owned subsidiaries? B. Misrepresentation B. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner Licensing is used when a firm possesses some tangible property but does not want to pursue A. Preemption rights clauses They form an alliance to benefit from complementary activities. 3. C. acquisitions WebWhich of the following statements is true of strategic alliances? language, etc. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. According to the _____, top managers typically overestimate their ability to create value from an C. They suggest turnkey operations that allow for a rapid startup. Managing an alliance successfully requires building interpersonal relationships between the firms' A. protect their procedures and technologies. Joint management A licensing agreement Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. strategic alliances C. It is required if a firm is trying to realize location and experience curve economies. A. B. B. franchising arrangement They enable firms to achieve goals faster, but at higher costs. C. pioneering costs Firms entering markets where there are no incumbent competitors to be acquired should choose D. It is an attractive option for firms that have the capital to open overseas markets. When technological know-how constitutes a firm's core competence, which entry mode is the Which of the following is likely to be true in this case? An alliance is likely to rely most on relationships between individuals when it is based on _____. Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. Franchising; licensing Which of the following is a distinct advantage of exporting? D. to test a market. ground up, called the _____. \end{array} B. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, language, etc.