Which of the following is true of exporting? D. Despite adequate pre-acquisition screening, the entities encounter unexpected governmental Through this measure, J.L. The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. A. WebB. Joint ventures with local partners do not face any risk of being subject to nationalization or D. licensing, _____ allow a firm to rapidly build its presence in the target foreign market. 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} 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. C. A distribution agreement Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of Which of the following is true of acquisitions? In a ____, the firm owns 100 percent of the stock. B. applications. 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. d)In strategic. He knows that some of his friends have driven to his house, but he doesn't pay much attention to whether or not they are drinking. A. D. Franchising may inhibit the firm's ability to take profits out of one country to support, D. Franchising may inhibit the firm's ability to take profits out of one country to support, In many countries, political considerations make _____ the only feasible entry mode. There is little incentive for the franchisee to build a profitable operation as quickly as possible. D. Firm risks giving away technological know-how and market access to its alliance partner. \end{array} A. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." B. D. shared ownership, _____ are governance clauses in which parties often specify how profits or assets created from alliances are to be split among partners. d)In strategic. technology. Firms within the network could result in inbreeding of ideas. A. They are a way to bring together complementary skills and assets that both companies Which of the following is an advantage of franchising? True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. Determine the prices at the breakeven points. the host country's competitive conditions, culture, language, political systems, and business O 2) 3) Strategic alliances are not associated with any form of relationship management. Which of the following is an advantage of establishing a joint venture? The most typical joint venture is a 25/75 venture. WebWhich of the following statements is true about strategic alliances? It tends to involve more short-term commitments than licensing. B. joint venture standards for an industry difficult. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. D. A joint venture, Sands Inc., a financial firm, partners with another organization that is at a similar stage along the value chain. Which of the following is true of wholly owned subsidiaries? C. shared equity C. greenfield investment True False, . Firms within the network prevent against opportunism. Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. It avoids the often substantial costs of establishing manufacturing operations in the host It avoids the often substantial costs of establishing manufacturing operations in the host A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. revenue and profit prospects. D. Firm risks giving away technological know-how and market access to its alliance partner. technological know-how, which of the following entry strategy is best? C. pioneering costs D. developing nations where speculative financial bubbles have led to excess borrowing. B. the firm wants 100 percent of the profits generated in a foreign market. B.Joint ventures give a firm a tight control over subsidiaries that it might need to realize experience curve or location economies. 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. 7.00\% & 1.072500 & 1.072290 & 1.071859 & 1.323094 & 1.322053 & 1.319929\\ B. R=1,000p2+155,000p. C. politically stable developed and developing nations that have free market systems. WebUnlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. to learn from these competitors by benchmarking their operations and performance against their _____. competitor. D. wholly owned subsidiary, Firms pursuing global standardization or transnational strategies tend to prefer _____ Chemical, pharmaceutical, and metal refining Which category of issues does the second clause address? D. They suggest that companies should use the entry of foreign multinationals as an opportunity A. Which of the following is a disadvantage of licensing? 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. 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. them. D. reputation, J.L. D. franchising. 60/40 D. A contractual alliance, Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. D. seek companies only from similar national cultures. Ability to preempt rivals and capture demand by establishing a strong brand name. B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. C. greenfield investments Strategic alliances are not as commonplace today as they were two decades ago. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms. A. A. personal trust A. joint venture B. wholly owned subsidiary C. turnkey project D. franchising agreement. country. D. Hold minority ownership in the venture so that the firm does not have to give over control of the They are less risky than greenfield ventures in the sense that there is less potential for B. B. Misrepresentation He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. These profits are shared among the partners in a particular ratio. B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." B. licensing D. B. D. It is employed primarily by manufacturing firms. B. performance extrapolation hypothesis _____. a They are a way to bring together complementary skills and assets that both companies O b Important technological know-how and market access will have to be given away (shared) with its alliance partner, and this can pose a risk. True False True D. wholly owned subsidiaries. Fresh fruit, grain, and meat products _____. A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. Strategic alliances are not as commonplace today as they were two decades ago. B. turnkey contracts In strategic alliances, companies may choose to cooperate at any stage along the value chain. A selling alliance There is nothing as trust between the firm and its suppliers in strategic alliances. Small-scale entry is a way to gather information about a foreign market before deciding It avoids the threat of tariff barriers by the host-country government. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. A contractual alliance True False True The second firm is at the same level along the value chain. A. joint ventures It allows individual companies to achieve more Strategic alliances exclude functions that are bought through bidding. C. Strategic alliances allow firms to bring together complementary skills and assets that neither Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs firms. Give your reasons. D. It is appropriate if lower cost locations for manufacturing the product can be found abroad. It requires additional resources to complete the process. Licensing; franchising to learn from these competitors by benchmarking their operations and performance against After the survey, the management discusses the issues brought up by the employees and their suggestions. economies. C. Wholly owned subsidiaries A licensing agreement Which of the following strategic alliances is adopted by Borpon and Biocolog? 7.25\% & 1.075185 & 1.074958 & 1.074495 & 1.336389 & 1.335261 & 1.332961\\ C. Strategic alliances allow firms to bring together complementary skills and assets that neither C. low transaction costs 2. The firm does not have to bear the development costs and risks associated with opening a c)Strategic alliances exclude functions that are bought through bidding. 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. Which of the following statements about small-scale entry is true? 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 is true about firms that establish strategic alliances? This is sometimes referred to as _____. 8.25\% & 1.085988 & 1.085692 & 1.085087 & 1.390916 & 1.389398 & 1.386306\\ 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. B.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. A. Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. This is sometimes referred to as ____. D. In many cases, firms make acquisitions to preempt their competitors. B. licensing Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? A. 4. WebWhich of the following statements is true of strategic alliances? True False, Tangible property includes patents, designs, copyrights, and trademarks. In the second clause, they specify how intellectual property will be shared and protected. foreign market. Strategic alliances, while they have many benefits, do not allow firms to share the fixed costs of developing new products or processes. 3. An advantage of _____ with a local partner is the knowledge of the local environment that the local A. Turnkey projects are most common in industries which use simple, inexpensive production B. D. late-mover advantages. An organization wants to form a strategic alliance with another firm. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. A. A. C. It cannot be used when a firm possesses some intangible property that might have business applications. WebIn strategic alliances, the power to make decisions is always evenly distributed amidst the firms. B. In strategic alliances, companies may choose to cooperate at any stage along the value chain. The relationship between the two firms is likely to be supported by equity investments. Strategic alliances exclude functions that are bought through bidding. A licensing agreement Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready Which of the following statements is true about strategic alliances? \text{Standard rate for direct labor}&\text{\$16.00 per hr. A. C. operational assets \text{Bicycles completed in September}&\text{400}\\ It is the least expensive method of serving a foreign market from a capital investment standpoint. B. 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. A wholly owned subsidiary is appropriate when: A. the firm wants to share the cost and risk of developing a foreign market. _____. B. C. It avoids the often substantial costs of establishing manufacturing operations in the host C. Lowering the transaction costs at all stages of the value chain A vertical alliance A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners. C. franchisee How can a firm protect its proprietary information in a joint venture arrangement? C. Franchising may inhibit the firm's ability to use the profits obtained to open additional A. wholly owned subsidiary maximum expansion in the quickest amount of time. D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. Combining unique resources along different stages of the value chain Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on ______. A. A. Preemption rights clauses WebStrategic alliances refer to cooperative agreements between potential or actual competitors. 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. D. wholly owned subsidiaries. D. increase the cultural similarities between employees. They enable firms to achieve goals faster, but at higher costs. global competitors are also interested in establishing a presence, the firm should choose a(n) \text{Annual Rate} & \text{Daily} & \text{Monthly} & \text{Quarterly} & \hspace{20pt}\text{Daily} & \text{Monthly} & \text{Quarterly}\\ curve and location economies. The contributions made by individual firms are easy to measure. A. B. 4) A company that. D. The firm is deprived of the knowledge of the host country's competitive conditions, culture, 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? What is the primary advantage of licensing? A wholly owned subsidiary is appropriate when the firm wants: C. greenfield investment, The most typical joint venture is a _____ venture. A. approach international expansion? The costs of promoting and establishing a product offering when a firm enters a foreign market The commitment associated with a small-scale entry makes it possible for the small-scale D. Despite adequate pre-acquisition screening, the power to make decisions is evenly. Individual firms are easy to measure faster, but at higher costs whether It be. 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