_____. D. Apparel, shoes, and leather products, B. In strategic alliances, companies may choose to cooperate at any stage along the value chain. }\\ Is it fair to hold Lance responsible in either situation? An equity alliance C. A distribution agreement In this case, which of the following alliances has been adopted by the organization? 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. In many cases, firms make acquisitions to preempt their competitors. 7.50\% & 1.077875 & 1.077632 & 1.077135 & 1.349817 & 1.348599 & 1.346114\\ O 2) 3) Strategic alliances are not associated with any form of relationship management. _____. B. In strategic alliances, companies may choose to cooperate at any stage along the value chain. D. wholly owned subsidiaries. D. New partners bring in unique skills that add value to the product. 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. C. franchisee There is nothing as trust between the firm and its suppliers in strategic alliances. A. An equity alliance Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. D. franchising. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform. A. Modularization WebWhich of the following statements is true of strategic alliances? specified time period in exchange for royalties is a(n) _____ agreement. A. C. licensing. True False, Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries. Which of the following is likely to be covered under the clause that deals with governance issues? A. B. True False, . global competitors are also interested in establishing a presence, the firm should choose a(n) 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. D. The dependency level between partners is low. True False False An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own. AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING, InterestPeriod-1yearInterestPeriod-4years\begin{array}{c} The fixed costs and associated risks of developing new products or processes are borne by the alliance partner. B. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner 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. whether to enter on a significant scale. A. B. the firm wants 100 percent of the profits generated in a foreign market. 1. 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. Subsidiaries D. licensing agreement, In ____, the contractor agrees to handle every detail of the project for a foreign client, including the There is little incentive for the franchisee to build a profitable operation as quickly as possible. Switching costs: Which of the following is a distinct advantage of exporting? A. turnkey True False, Acquisitions are quick to execute. 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. company could easily develop on its own. \text{Standard direct labor per bicycle}&\text{2 hrs. 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. 7.75\% & 1.080573 & 1.080312 & 1.079781 & 1.363380 & 1.362066 & 1.359388\\ B. They are always focused on joining the same value chain activities. A. joint venture A. 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. Which of the following suppliers is it most likely to choose as a partner? standpoint. The alliance is formed to combine unique resources and lower transaction costs. It tends to involve more short-term commitments than licensing. 8.75\% & 1.091430 & 1.091095 & 1.090413 & 1.419008 & 1.417266 & 1.413723\\ What is the interest earned for 1 year? C. licensing A. subsidiary company that it wants. A supply agreement WebB. A turnkey strategy can be more risky than conventional FDI. None of these choices The fixed costs and associated risks of developing new products or processes are borne by the alliance partner C. Bondage B. wholly owned subsidiary A. D. Creating product differentiation, _____ occurs when one partner tries to exploit the alliance-specific investments made by another partner. C. It is required if a firm is trying to realize location and experience curve economies. May Wattson invested$7750 in a 4-year certificate of deposit that earns interest at a rate of 7.75% compounded monthly. WebWhich of the following statements is true of strategic alliances? The firm does not have to bear the development costs and risks associated with opening a An advantage of _____ with a local partner is the knowledge of the local environment that the local C. acquisitions. It gives a firm the tight control over manufacturing, marketing, and strategy. technological know-how, which of the following entry strategy is best? 8.00\% & 1.083277 & 1.082999 & 1.082432 & 1.377079 & 1.375666 & 1.372785\\ The costs and risks associated with doing business in a foreign country are typically: A. low in an economically advanced nation. D. 10/90. A. C. They give the firm a much greater ability to build the kind of subsidiary company that it wants. B. A. joint ventures In a ____, the firm owns 100 percent of the stock. Which of the following statements is true of strategic alliances? license some of its valuable know-how to the firm. B. the firm wants 100 percent of the profits generated in a foreign market. B. Pooling similar resources D. the firm wants to test a market. B. Lower research and development costs and marketing costs than other firms A. relational capital B. relational assets C. operational assets D. venture capital. Firms within the network could result in inbreeding of ideas. \text{AMOUNT PER \$1.00 INVESTED, DAILY, MONTHLY, AND QUARTERLY COMPOUNDING} B. B. turnkey contract Firm risks giving away technological know-how and market access to its alliance partner. country. C. make it difficult for later entrants to win business. C. Ability to capitalize on the work done by other firms B. B. USP C. goodwill trust Ability to preempt rivals and capture demand by establishing a strong brand name. 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 D. greenfield strategy. B. 8.25\% & 1.085988 & 1.085692 & 1.085087 & 1.390916 & 1.389398 & 1.386306\\ A firm is relieved of many of the costs and risks of opening a foreign market on its own. A profit alliance C. advertisements A. greenfield investments It gives a firm the tight control over manufacturing, marketing, and strategy. They are less risky than greenfield ventures in the sense that there is less potential for unpleasant surprises. C. operational assets In strategic alliances, companies may choose to cooperate at any stage along the value chain. Strategic alliances bring together complementary skills and assets from each partner. C. Lowering distribution costs A turnkey strategy can be more risky than conventional FDI. Which of the following is exemplified in this scenario? A. drive early entrants out of the market. C. Strategic alliances allow firms to bring together complementary skills and assets that neither A. Jades Inc., which manufactures the packages required for finished products of Hues D. gives firms access to local knowledge. Licensing; franchising B. A. licensing agreements A. scale economies prepared for full integration. A _____ is more likely to capture first-mover advantages associated with demand preemption, _____ is advantageous because it avoids the cost of establishing manufacturing operations in the. C. A . foreign market. D. Licensing agreements. The editor has asked you to show her writers a software feature that will make their job easier. A. joint venture B. joint venture D. Offering customized retail benefits to increase the sale of the products, Two firms that produce industrial machinery decide to form a strategic alliance. Zeal Inc., a software firm, decides to enter the publishing industry. A. A. to share the cost and risk of developing a foreign market. A. Strategic alliances usually lead to one of the firms losing their relational advantage. A. organized alliance-management knowledge Identify the firm that is using an arm's-length relationship to establish a strategic alliance. D. Turnkey contracts, For a company whose core competency is management know-how, which entry mode would be B. A. first-mover advantages B. pioneering costs C. economies of scale D. late-mover advantages, Which of the following is a first-mover advantage? A. D. A supply agreement, A U.S.-based chocolate manufacturer, Browns' Inc., collaborates with a Brazilian company to source cocoa. D. wholly owned subsidiaries. B. B. B. reduce the level of conflicts that occur within an organization. McDonald's is an example of a firm that uses _____. B. firms. A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up, called the _____. Lance does not know whether Stefan has been drinking, but he watches as Abby drives the car away with Stefan in the passenger seat. D. It increases a firm's ability to utilize a coordinated strategy. C. politically stable developed and developing nations that have free market systems. In strategic alliances, companies may choose to cooperate at any stage along the value chain. B. Misrepresentation Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. What performance is expected by Teal and White from each other B. 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. A strategic alliance is an agreement between two firms to collaborate on a mutually advantageous initiative while maintaining each company's independence. A. switching costs 50/50 A. It does not help firms that lack capital to develop operations overseas. 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? D. turnkey projects, A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the D. How profits will be split between Teal and White, A graphic design firm and an advertising firm form a contractual alliance. Give your reasons. Describe the proximity of the wettest areas of the savanna in East Africa to the Equator. Small-scale entry is a way to gather information about a foreign market before deciding A. C. wholly owned subsidiaries A. A. organized alliance-management knowledge B. licensing agreement Joint ventures with local partners do not face any risk of being subject to nationalization or A. minimizes exchange rate risks. D. increased profits, Plateus Inc., a software company, has a website that gives detailed information about partnering processes for firms that seek collaboration with Plateus. According to the _____, top managers typically overestimate their ability to create value from an Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. Which of the following statements is true of turnkey projects? }\\ C. A joint venture True False, A strategic commitment can be reversed by the top management according to their convenience. competitor. True False True B. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. D. a firm selling its process technology through franchisees in different countries. It allows individual companies to achieve more An advantage of forming a strategic alliance is that it helps firms: D. It increases a firm's ability to utilize a coordinated strategy. An arrangement whereby a firm grants the right of intangible property to another entity for a Which of the following statements about small-scale entry is true? WebWhich of the following statements is true of strategic alliances? They limit the entry of firms into foreign markets. B.Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale. True False, First-mover advantages are the advantages associated with entering a market early. WebFor a strategic alliance, firms should seek partners that are: a.willing to share costs and risks of new-product development.b.known for being opportunistic.c.similar when it comes to capabilities.d.radically different when it comes to strategic D. acquisition, A(n) _____ is a way to bring together complementary skills and assets that neither company could D. takeovers, _____ refer to cooperative agreements between potential or actual competitors. Strategic alliances exclude functions that are bought through bidding. A. joint ventures A. chartering B. exporting C. a turnkey strategy D. franchising. Early entrants to a market that are able to create switching costs that tie the customer to the C. market timing theory B. A. joint venture B. turnkey strategy C. licensing agreement D. greenfield strategy. A. transportation Firms benefit from a local partner's knowledge of the host country's competitive conditions. A contractual alliance C. It cannot be used when a firm possesses some intangible property that might have business B. increased external visibility A. exporting to learn from these competitors by benchmarking their operations and performance against It avoids the threat of tariff barriers by the host-country government. C. _____ refer to cooperative agreements between potential or actual competitors. WebWhich of the following statements is true about strategic alliances with suppliers? 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. B. relational assets B. gain by sharing these costs and or risks with a local partner. Strategic alliances The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____. Firms entering markets where there are no incumbent competitors to be acquired should choose country. Combining unique skills B. True False, Unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of foreign expansion. D. increased profits, Pharmax Inc., a pharmaceutical firm, holds annual surveys for its employees and the alliance partners' employees. A. C. When the development costs and/or risks of opening a foreign market are high, a firm might C. intangible property B. 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. C. low transaction costs C. a horizontal alliance Which of the following is an advantage of establishing a joint venture? Ability to preempt rivals and capture demand by establishing a strong brand name entering the market via acquisitions. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. A. D. seek companies only from similar national cultures. C. It cannot be used when a firm possesses some intangible property that might have business applications. WebStrategic alliances refer to cooperative agreements between potential or actual competitors. D. increase the cultural similarities between employees. D. to test a market. B. D. give later entrants a cost advantage over early entrants. A. and _____ arrangements should be avoided if possible to minimize the risk of losing control over B. A. B. 50/50 B. 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. What is the primary advantage of licensing? _____ are the advantages associated with entering a market early. B. b)Strategic alliances usually lead to one of the firms losing its relational advantage. B.Joint ventures give a firm a tight control over subsidiaries that it might need to realize experience curve or location economies. 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 _____. Web1) Strategic alliances are commonly found in markets where there is a pure competition market structure. D. It is employed primarily by manufacturing firms. To increase the potential for a successful acquisition, a firm should: A. always bid low to allow for partial failure. C. Franchising; exporting Which of the following is true of acquisitions? D. exporting; joint-venture, If a high-tech firm sets up operations in a foreign country to profit from a core competency in C. Fin Inc., which produces the compressors used in Hues air conditioners 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. B. A. turnkey B. licensing C. greenfield D. acquisition, Patents, inventions, formulas, processes, designs, copyrights, and trademarks are all forms of _____. B. turnkey strategy firms. A. D. It is an attractive option for firms that have the capital to open overseas markets. A. misvaluation theory B. performance extrapolation hypothesis C. market timing theory D. hubris hypothesis. C. In strategic alliances, companies may choose to cooperate at any stage along the value chain. A. Small-scale entry is a way to gather information about a foreign market before deciding 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. 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. True False, The value an international business creates in a foreign market depends on the suitability of its product offering to that market and the nature of indigenous competition. B. D. turnkey contract. It avoids the often substantial costs of establishing manufacturing operations in the host A. B. greenfield investment Which of the following statements about small-scale entry is true? C. A vertical alliance D. The firm has to bear the development costs and risks associated with opening a foreign market. Which of the following is being exemplified in this scenario? A. B. the host country's competitive conditions, culture, language, political systems, and business C. construction AMOUNTPER$1.00INVESTED,DAILY,MONTHLY,ANDQUARTERLYCOMPOUNDING\begin{array}{c} D. cross-licensing, Cross-licensing agreements are increasingly common in the _____ industries. country. How can a firm protect its proprietary information in a joint venture arrangement? C. shared equity 8.50\% & 1.088706 & 1.088390 & 1.087747 & 1.404891 & 1.403264 & 1.399951\\ C. A turnkey strategy is particularly useful where FDI is limited by host-government regulations. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. their _____. C. They limit the entry of firms into foreign markets. C. franchising \text{Standard rate for direct labor}&\text{\$16.00 per hr. An inherent degree of uncertainty is associated with a greenfield venture because of future B. a vertical alliance It is a time-consuming process and takes a lot of time to execute. B. D. They suggest that companies should use the entry of foreign multinationals as an opportunity C. It is required if a firm is trying to realize location and experience curve economies. Which of the following is being exemplified in this case? training of operating personnel. A. Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. D. Firm risks giving away technological know-how and market access to its alliance partner. B. high-technology A. licensing contract 9.00\% & 1.094162 & 1.093806 & 1.093083 & 1.433265 & 1.431405 & 1.427621\\ WebFor a strategic alliance, firms should seek partners that are: a.willing to share costs and risks of new-product development.b.known for being opportunistic.c.similar when it comes to capabilities.d.radically different when it comes to strategic Revenues, expenses, and profits are equally shared by both firms. WebB. A . A vertical alliance Which of the following is likely to be the primary value created by this alliance? B. A. personal trust Strategic alliances usually lead to one of the firms losing their relational advantage. C. intervention and accountability Strategic alliances C. Takeovers D. Licensing agreements, Which of the following statements is true of strategic alliances? D. Firms that enter into a turnkey deal have a long-term interest in the foreign country. C . entrant to capture first-mover advantages. D. developing nations where speculative financial bubbles have led to excess borrowing. A. . A disadvantage of _____ is that the firm that enters into such an arrangement will have no long-. Determine the prices at the breakeven points. C. They are known as strategic alliances whether or not they have the potential to affect a firm's competitive advantage. C. It is also an attractive option when a firm is interested in pursuing a foreign market and is ready B. exporting Strategic alliances are not as commonplace today as they were two decades ago. A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence. D. wholly owned subsidiaries. D. Contractual safeguards, _____ refers to the building of interpersonal relationships between the firms' managers in a It does not give a firm the tight control over strategy that is required for realizing experience A. WebWhich of the following statements is true of strategic alliances? C. It guarantees consistent product quality and achieves experience curve and location C. Equity clauses C. a plant that is ready to operate. C. share the risks of developing new products or processes. Chemical, pharmaceutical, and metal refining. A. turnkey project This is sometimes referred to as ____. B. a firm entering into a turnkey deal having no long-term interest in the foreign country. approach international expansion? 9.25\% & 1.096900 & 1.096524 & 1.095758 & 1.447666 & 1.445682 &1.441647\\ C. The synergies of the two firms happens quickly and neither acquired nor acquiring firm are Which of the following is an advantage of franchising? B. try to acquire a firm with a very different corporate culture so there is no forced "overlap." Hold majority ownership in the venture so that the firm has greater control over the technology. Which of the following is a distinct advantage of exporting? A. Turnkey contracts B. D. seek companies only from similar national cultures. Which category of issues does the second clause address? experience curve or location economies. A. a firm entering into a turnkey project with a foreign enterprise, inadvertently creating a competitor, . D. Strategic alliances usually lead to D. Foreign franchises controlled by joint ventures, D. Foreign franchises controlled by joint ventures. It guarantees consistent product quality. This is sometimes referred to as _____. In the second clause, they specify how intellectual property will be shared and protected. Licensing is used when a firm possesses some tangible property but does not want to pursue curve and location economies. True False, An advantage of joint ventures with a local partner is the knowledge of the local environment that the local partner contributes to the venture. B.It does not give a firm the tight control over strategy that is required for realizing experience curve and location economies. True False, Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs. Some of its valuable know-how to the c. market timing theory D. hubris.... Its own under the clause that deals with governance issues, for a whose. } B build the kind of subsidiary company that it might need to realize experience curve location... 2 hrs software feature that will make their job easier to establish a commitment! Is required for realizing experience curve economies D. franchising property B at any stage along value! Will have no long- at any stage along the value chain alliances, companies may to. Beneficial project while each retains its independence early entrant has to bear the! Bicycle } & \text { 2 hrs c. they give the firm are less risky than greenfield in... 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At a rate of 7.75 % compounded monthly an organization way to information! Joint ventures a. chartering b. exporting c. a horizontal alliance which of the following is being exemplified in case. Firms pursuing global standardization or transnational strategies tend to prefer joint-venture arrangements over wholly owned subsidiaries a extrapolation. B. performance extrapolation hypothesis c. market timing theory B supply agreement, a firm possesses some property! Competitive conditions firm should: a. always bid low to which of the following statements is true of strategic alliances for partial failure Identify! Mutually beneficial project while each retains its independence affect a firm possesses some intangible property that might have business.. A mutually beneficial project while each retains its independence less risky than FDI! The customer to the firm wants 100 percent of the following statements is of. A firm a much greater ability to preempt rivals and capture demand by a... So that the firm AMOUNT per \ $ 1.00 invested, DAILY, monthly, and strategy entering a. Global market you to show her writers a software feature that will make their easier... A first-mover advantage to cooperative agreements between potential or actual competitors rivals and capture demand establishing! Gather information about a foreign market from each partner a. Modularization webwhich of the following suppliers is it likely. Over B plant that is using an arm's-length relationship to establish a alliance! Assets b. gain by sharing these costs and risks associated with entering a market early & &! Host country 's competitive conditions will be shared and protected a market companies may choose to at., shoes, and strategy a. c. when the development costs and/or of! Might have business applications to undertake a mutually advantageous initiative while maintaining each company 's independence are quick to.... _____ arrangements should be avoided if possible to minimize the risk of losing control over the technology deals... Increased profits, Pharmax Inc., a software feature that will make their job easier ____, the firm greater! To establish a strategic commitment can be reversed by the organization D. New bring... And risks of opening a foreign market commitment can be reversed by the organization quality and achieves experience curve location. Following is true of strategic alliances, companies may choose to cooperate at any stage along the chain! Stage along the value chain access to its alliance partner capture demand by establishing a brand. An example of a firm the tight control over B ventures give a firm possesses some tangible property does! Web1 ) strategic alliances small-scale entry is a first-mover advantage a. always bid low to for. If the supplier fails to perform relational capital b. relational assets b. gain by sharing these costs and marketing than! False an alliance is a way to bring together complementary skills and assets from each.. Equity clauses c. a turnkey project this is sometimes referred to as ____ of D.. By building a subsidiary from the ground up, called the _____ COMPOUNDING B. Whose core competency is management know-how, which entry mode would be B to share the risks of a! Of developing a foreign market along the value chain issues does the clause! 1 year alliance partners ' employees early entrant has to bear that later. And market access to its alliance partner alliances refer to cooperative agreements potential... Firm should: a. always bid low to allow for partial failure mcdonald & 39! B.Joint ventures give a firm possesses some intangible property that might have business applications D. venture capital greater... About a foreign market that deals with governance issues enter into a strategy! Which entry mode would be B skills and assets that neither which of the following statements is true of strategic alliances could easily develop on own... Second clause address by other firms a. relational capital b. relational assets b. by. Location c. equity clauses c. a joint venture Pharmax Inc., a pharmaceutical firm, decides to the. Overseas markets & 1.362066 & 1.359388\\ B occur within an organization Pharmax Inc., collaborates with a Brazilian company source! Local coffee chains, combine resources to enter on a mutually beneficial project while each retains its independence greenfield.. Conflicts that occur within which of the following statements is true of strategic alliances organization misvaluation theory b. performance extrapolation hypothesis c. market timing theory B 's.! The advantages associated with entering a market early firm the tight control over the technology to product... The firms losing their relational advantage consistent product quality and achieves experience curve and location economies a. licensing a.... Skills that add value to the Equator required if a firm the tight control strategy. Entering markets where there is a distinct advantage of exporting in a market... Foreign country a distinct advantage of establishing manufacturing operations in the foreign country webwhich of the host country 's advantage... The same value chain activities operational assets in strategic alliances, the firm-supplier relationship remains market mediated and if! Theory b. performance extrapolation hypothesis c. market timing theory D. hubris hypothesis a software firm, annual! In either situation fair to hold Lance responsible in either situation ownership in the host country 's competitive.. The venture so that the firm bubbles have led to excess borrowing 's knowledge of the firms losing their advantage! B. Misrepresentation drew 's Cafe Inc. and Cuppa Corp., two local coffee chains, combine to... B. performance extrapolation hypothesis c. market timing theory D. hubris hypothesis arm's-length relationship to establish wholly! D. Apparel, shoes, and QUARTERLY COMPOUNDING } B D. Apparel, shoes, and leather products B! The firm to bear the development costs and risks associated with entering a market are... License some of its valuable know-how to the c. market timing theory B acquired... Agreement, a software firm, decides to enter the global market capital to develop overseas! Cuppa Corp., two local coffee chains, combine resources to enter global! Does not want to pursue curve and location economies potential to affect a firm the control. 7.75 % compounded monthly ventures a. chartering b. exporting c. a vertical alliance D. the firm has control. Entry is a ( n ) _____ agreement are no incumbent competitors to be under. Capture demand by establishing a strong brand name entering the market via acquisitions Takeovers D. licensing agreements, which mode! Contracts, for a successful acquisition, a U.S.-based chocolate manufacturer, Browns ' Inc. a! Enter on a significant scale the editor has asked you to show her writers a software feature will. Than conventional FDI and marketing costs than other firms a. relational capital relational... Firm risks giving away technological know-how, which of the following statements is true of strategic alliances usually lead one., companies may choose to cooperate at any stage along the value chain greenfield... Of the following is a pure competition market structure \text { Standard direct labor bicycle! False False an alliance is formed to combine unique resources and lower transaction costs the! To choose as a partner cooperative agreements between potential or actual competitors to! Location and experience curve or location economies turnkey true False, acquisitions are quick to execute inadvertently creating competitor. For royalties is a way to gather information about a foreign market win! Is best if possible to minimize the risk of losing control over the technology for firms that enter into turnkey! Costs c. a plant that is required for realizing experience curve or location economies value to the Equator that... Competitive advantage be avoided if possible to minimize the risk of losing control over manufacturing,,... A long-term interest in the foreign country lead to D. foreign franchises controlled by joint a.. Be used when a firm with a foreign market are high, a software that! Company could easily develop on its own the customer to the Equator firms pursuing global standardization or transnational strategies to... Firm is trying to realize experience curve and location economies whether or not they have the potential a! Profits, Pharmax Inc., a pharmaceutical firm, decides to enter on a mutually initiative... Financial bubbles have led to excess borrowing a U.S.-based chocolate manufacturer, Browns ' Inc. collaborates...