B. joint venture It the most feasible entry mode due to the political considerations. It avoids the threat of tariff barriers by the host-country government. C. a turnkey strategy B. The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. A. relational capital B. relational assets C. operational assets D. venture capital. C. A joint venture Activity Plan and demonstrate how to use the feature. B.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. A. always bid low to allow for partial failure. According to the _____, top managers typically overestimate their ability to create value from an acquisition. C. Exit issues Which of the following is true of wholly owned subsidiaries? Which of the following statements about small-scale entry is true? B. 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. Managing an alliance successfully requires building interpersonal relationships between the firms' managers. Marcel, the CEO of an automobile company, considers extending his research and development facility by collaborating with a multinational company. 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. easily develop on its own. True False, An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. WebWhich of the following statements is true about strategic alliances with suppliers? 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. C. Bondage A. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. A profit alliance A supply agreement The alliance between the two firms is an example of _____. SeaShade produces beach umbrellas. Which of the following is an advantage of franchising? Weba) In strategic alliances, companies may choose to cooperate at any stage along the value chain. Which of the following statements strengthens Sanah's argument? True False, In a turnkey project, the contractor agrees to handle every detail of the project for a foreign client. D. diseconomies of scope. C. shared equity 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} Which of the following statements is true of turnkey projects? 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ Acquisitions D. The firm has to bear the development costs and risks associated with opening a foreign market. C. By sharing only the technology of the firm, not the patents and copyrighted information. A. scale economies C. greenfield investments A. B. B. b)Strategic alliances usually lead to one of the firms losing its relational advantage. firms. WebWhich of the following statements is true about strategic alliances? B. D. Exporting; licensing, If a service firm wants to build a global presence quickly and at a relatively low cost and risk, it D. Tariff barriers may make exporting the most attractive option. 3. True False, A strategic commitment can be reversed by the top management according to their convenience. C. Strategic alliances allow firms to bring together complementary skills and assets that neither In the first clause, they specify how decisions will be made, how profits will be split, and how disputes will be resolved. Voting rights clauses D. The dependency level between partners is low. 2003-2023 Chegg Inc. All rights reserved. C. Relational capital A. scale economies B. diseconomies of scale C. pioneering costs D. diseconomies of scope. A. politically unstable developing nations that operate with a mixed or command economy. A. Strategic alliances are not as commonplace today as they were two decades ago. that technology. 100 percent of the profits generated in a foreign 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. B. Misrepresentation A. top management staff Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry. It allows individual companies to achieve more D. They suggest that companies should use the entry of foreign multinationals as an opportunity An inherent degree of uncertainty is associated with a greenfield venture because of future 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. D. a firm selling its process technology through franchisees in different countries. B. A firm is relieved of many of the costs and risks of opening a foreign market on its own. D. 10/90. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. O 2) 3) Strategic alliances are not associated with any form of relationship management. 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. A. licensing contract In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. Turnkey projects are most common in industries which use simple, inexpensive production B. Give your reasons. D. Hold minority ownership in the venture so that the firm does not have to give over control of the \end{array} B. nations where there is a dramatic upsurge in either inflation rates or private-sector debt. Firm risks giving away technological know-how and market access to its alliance partner. curve and location economies. O 2) 3) Strategic alliances are not associated with any form of relationship management. C. How much direct labor should be debited to Work in Process? The objective of this collaboration is to combine their manufacturing facilities to achieve economies of scale during production. D. takeovers. It does not give a firm the tight control over strategy that is required for realizing experience A. Which of the following is the primary value they aim to create through this alliance? WebWhich of the following statements is true of strategic alliances? B. legal contracts When technological know-how constitutes a firm's core competence, which entry mode is the D. developing nations where speculative financial bubbles have led to excess borrowing. He believes that a contractual alliance will be ideal for this collaboration, but other senior members of the management oppose a contractual alliance. A. switching costs A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. C. joint ventures B. WebQuestion: QUESTION 13 Which of the following statements is true of strategic alliances? It helps a firm avoid the development costs associated with opening a foreign market. B. D. licensing agreement, _____ can be used to formalize arrangements to swap skills and technology in a strategic alliance. 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. 4. Hold majority ownership in the venture so that the firm has greater control over the technology. McDonald's is an example of a firm that uses _____. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. C. licensing agreement WebB. 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. A. Which of the following is likely to be true in this case? B. turnkey contracts. D. In many cases, firms make acquisitions to preempt their 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. A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. R=1,000p2+155,000p. B. pioneering costs. The relationship between the two firms is likely to be supported by equity investments. True False, Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner. It avoids the threat of tariff barriers by the host-country government. D. seek companies only from similar national cultures. global competitors are also interested in establishing a presence, the firm should choose a(n) Which of the following is true of strategic alliances? D. franchising, If a firm is trying to enter a market where there are already well-established companies, and where Firms within the network could result in inbreeding of ideas. D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the . C. faces less trade barriers. A. Explain whether it would be correct to reference the periods of rainy season and dry season in this area as being equal. D. It is particularly useful where FDI is limited by host-government regulations. There is a clash between the cultures of the acquired and the acquiring firms. C . their _____. What is Bartlett and Ghoshal's perspective on how firms from developing countries should The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. Their convenience, companies may choose to cooperate at any stage along the value.... 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