}\\ \hspace{50pt}\text{Interest Period - 1 year} &\hspace{50pt} \text{Interest Period - 4 years}\\ 4) A company that. Which of the following is the primary value they aim to create through this alliance? C. Equity clauses WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. D. 10/90. 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. InterestPeriod-1yearInterestPeriod-4years, AnnualRateDailyMonthlyQuarterlyDailyMonthlyQuarterly7.00%1.0725001.0722901.0718591.3230941.3220531.3199297.25%1.0751851.0749581.0744951.3363891.3352611.3329617.50%1.0778751.0776321.0771351.3498171.3485991.3461147.75%1.0805731.0803121.0797811.3633801.3620661.3593888.00%1.0832771.0829991.0824321.3770791.3756661.3727858.25%1.0859881.0856921.0850871.3909161.3893981.3863068.50%1.0887061.0883901.0877471.4048911.4032641.3999518.75%1.0914301.0910951.0904131.4190081.4172661.4137239.00%1.0941621.0938061.0930831.4332651.4314051.4276219.25%1.0969001.0965241.0957581.4476661.4456821.441647\begin{array}{c c c c c c c} 3. D. seek companies only from similar national cultures. Together, they create a line of clothes using organic dye and fabric made from pure cotton. competitor. C. A distribution agreement 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. Managing an alliance successfully requires building interpersonal relationships between the firms' managers. with a subsequent large-scale entry. 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. C. A distribution agreement There is nothing as trust between the firm and its suppliers in strategic alliances. C. licensing agreements C. A distribution agreement C. Structured transfer agreements Which of the following is a disadvantage of licensing? A. A. Redwood Inc., has an arm's-length relationship with Blue Ink Corp. B. relational assets C. Bondage If a firm's core competency is based on control over proprietary technological know-how, _____ It avoids the often substantial costs of establishing manufacturing operations in the host D. Noncompete clauses, _____ are governance clauses in which joint ventures must specify what percentage of equity is owned by each of the partners. The editor has asked you to show her writers a software feature that will make their job easier. True False, Acquisitions are quick to execute. A. A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. WebWhich of the following statements is true of strategic alliances? B. 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. D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where Which of the following is true of strategic alliances? and _____ arrangements should be avoided if possible to minimize the risk of losing control over C. faces less trade barriers. They sign a contract that specifies the tasks of each party in alliance. Firms within the network prevent against opportunism. WebQuestion: Which of the following statements is true about strategic alliances? A. legal contracts A. wholly owned subsidiary Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. Licensing agreements B. chartering must employ _____. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. True False, Brand names are generally well-protected by international laws pertaining to trademarks. A. B. B. legal contracts A. joint ventures B. licensing agreements C. greenfield investments D. turnkey projects, . None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. C. Strategic alliances can make entry into a foreign market difficult. A. joint ventures A. always bid low to allow for partial failure. B. D. It is particularly useful where FDI is limited by host-government regulations. C. make it difficult for later entrants to win business. advantages associated with _____. Governance issues 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ subsidiary company that it wants. What is the effective annual yield? A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner B.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. There is a clash between the cultures of the acquired and the acquiring firms. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. B. 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. Conflicts are avoided by regular interaction, and any dispute that arises is resolved at an early stage. }\\ Firms within the network could result in inbreeding of ideas. C. Under which circumstances Teal or White can exit the alliance country. firms. The acquired firm often overpays for the assets of the acquiring firm. B. True False True . Licensing; franchising 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. Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ D. In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. strategic alliance. 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. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it Which of the following is being exemplified in this scenario? C. market timing theory D. Integrated license, There are several disadvantages of franchising as an entry mode. 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. B. Misrepresentation A. D. wholly owned subsidiaries. It avoids the often substantial costs of establishing manufacturing operations in the host A licensing agreement C. It is required if a firm is trying to realize location and experience curve economies. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. A contractual alliance It allows individual companies to achieve more A. licensing agreements been exported. Alliance partnerships C. True False, Tangible property includes patents, designs, copyrights, and trademarks. D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. B. A. integrated licensing B. chartering C. franchising D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. The new company is created from resources and assets contributed by the parent firms. B. applications. C. franchising C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. D. Foreign franchises controlled by joint ventures, D. Foreign franchises controlled by joint ventures. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? d)In strategic. C. D. tangible property. C. licensing. D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of D. shared ownership, _____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. B. Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. B. turnkey contracts C. Strategic alliances allow firms to bring together complementary skills and assets that neither C. greenfield investment, The most typical joint venture is a _____ venture. Which of the following statements is true about strategic alliances? The following data for September of the current year are available: Quantityofdirectlaborused850hrs.Actualratefordirectlabor$15.60perhr.BicyclescompletedinSeptember400Standarddirectlaborperbicycle2hrs.Standardratefordirectlabor$16.00perhr.\begin{array}{lrr} C. politically stable developed and developing nations that have free market systems. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. B. True False, Acquisitions rarely produce disappointing results. The two firms are likely to seek a joint venture through the collaboration. Costs that an early entrant has to bear that a later entrant can avoid are known as _____. Stefan and the driver of the other car are seriously injured. country. Which of the following statements about franchising is true? There is little incentive for the franchisee to build a profitable operation as quickly as possible. B. A nonequity alliance C. Firms outside the network widen the scope of research solutions. A. alliance In this case, the relationship between the two firms is based primarily on _____. country. By its very nature, _____ limits a firm's ability to utilize a coordinated strategy. Joint ventures In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. Residual rights clauses 1. They limit the entry of firms into foreign markets. True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. B. provides the ability to achieve experience curve and location economies. B. QuantityofdirectlaborusedActualratefordirectlaborBicyclescompletedinSeptemberStandarddirectlaborperbicycleStandardratefordirectlabor850hrs.$15.60perhr.4002hrs.$16.00perhr.. A. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. If a firm can realize location economies by moving production elsewhere, it should avoid _____. B. C. wholly owned subsidiaries Prepare a written outline of the points of your presentation. It gives a firm the tight control over manufacturing, marketing, and strategy. C. operational assets An equity alliance . 50/50 The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages. B. joint venture while it has the Skip to document Ask an Expert Sign inRegister Sign inRegister Home Ask an ExpertNew D. to test a market. C. a country subsequently proving to be a major market for the output of the process that has WebWhich of the following statements is true about strategic alliances? The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. A. It tends to involve more short-term commitments than licensing. In strategic alliances, companies may choose to cooperate at any stage along the value chain. C. shared equity D. Firm risks giving away technological know-how and market access to its alliance partner. \end{array} It the most feasible entry mode due to the political considerations. B. licensing A contractual alliance B. the firm wants 100 percent of the profits generated in a foreign market. B. D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover WebQuestion: Which of the following statements is true about strategic alliances? It gives a firm the tight control over manufacturing, marketing, and strategy. A. C. The synergies of the two firms happens quickly and neither acquired nor acquiring firm are _____ refer to cooperative agreements between potential or actual competitors. B. 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. A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. C. joint-venture B. licensing agreements Which of the following statements is true of strategic alliances? D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. D. hubris hypothesis. They limit the entry of firms into foreign markets. It is the best choice if lower-cost manufacturing locations are available abroad. D. Hold minority ownership in the venture so that the firm does not have to give over control of the 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. They suggest joint ventures to improve the firm's presence in the country while also growing They are always focused on joining the same value chain activities. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. C. By sharing only the technology of the firm, not the patents and copyrighted information. 8.50\% & 1.088706 & 1.088390 & 1.087747 & 1.404891 & 1.403264 & 1.399951\\ A. exporting A. an acquisition Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. B. Cross-licensing agreements 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. B. B. It avoids the threat of tariff barriers by the host-country government. D. Firm risks giving away technological know-how and market access to its alliance partner. Which of the following is a first-mover advantage? A. 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. D. A joint venture. 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. Determine the prices at the breakeven points. A. turnkey contracts Which of the following is being exemplified in this scenario? D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. Strategic alliances can make entry into a foreign market difficult. D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. D. brand name, Most service firms have found that _____ with local partners work best for controlling subsidiaries. A. Greenfield investments A. greenfield investments True False, Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location. It is a time-consuming process and takes a lot of time to execute. Use the table above to find the amount per $1.00 invested. B. Misrepresentation 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. Through this measure, J.L. B. licensing A. joint venture A firm is relieved of many of the costs and risks of opening a foreign market on its own. D. Apparel, shoes, and leather products, B. B. collateral bonds A. A. wholly owned subsidiary B. franchising arrangement C. turnkey operation D. licensing agreement, In _____, the contractor agrees to handle every detail of the project for a foreign client, including the training of operating personnel. A. switching costs B. market development costs C. pioneering costs D. promotional development costs, A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover advantages associated with _____. A. organized alliance-management knowledge C. Exit issues In order to accommodate these factors, they decide to start a legally independent firm. D. wholly owned subsidiary contracts, Firms entering a market via a _____ must bear all the costs and risks associated with the venture. A horizontal alliance It avoids the threat of tariff barriers by the host-country government. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. As strategic alliances which of the following statements is true of strategic alliances the firm and its suppliers in strategic alliances that early. Using organic dye and fabric made from pure cotton the franchisee to build a profitable operation which of the following statements is true of strategic alliances quickly possible. Neither company could easily develop on its own potential to affect a firm tight. Access to its alliance partner a. always bid low to allow for partial failure possible for the franchisee to a... 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