Exam 13: International Strategic Alliances

What are the three types of management agreements used for strategic alliances?

Conflict over distributing earnings can be avoided by negotiating such issues as part of the original contract agreement.

Simmons Semiconducter and Rapid Electronics have formed a strategic alliance to develop a tool that will facilitate computer chip manufacturing. The two firms will work together only to design the tool. Which term best describes this strategic alliance?

When technological advances render an agreement obsolete, it is an example of ________.

What has been the primary problem associated with the joint venture between VW and Suzuki?

A(n) ________ alliance is a functional alliance of firms that want to reduce financial risks associated with a project.

Why would a firm establish a non-joint venture strategic alliance instead of a joint venture? What are the characteristics of a non-joint venture strategic alliance?

Comprehensive alliances are usually organized as non-joint venture strategic alliances.

Boeing collaborated in a strategic alliance with Fuji, Mitsubishi, and Kawasaki in the development and production of the Boeing 777 to minimize Boeing's financial exposure. What benefit of strategic alliances was Boeing seeking?

Conflict over the distribution of earnings is the primary cause for failures among strategic alliances.

Strategic alliances include cooperation between international firms such as cross-licensing of proprietary technology.

Strategic alliances can be used to limit risk.

What factors are likely to trigger incompatibility among partners in a strategic alliance? How can incompatibility issues be avoided?

Which of the following is a benefit of the corporate form for joint ventures?

A company strives to enter emerging markets before competitors and works with local partners to minimize risks.

PepsiCo and Thomas J. Lipton Co. established a joint venture. PepsiCo supplied an extensive distribution network, and Lipton provided manufacturing expertise and brand recognition in teas. What benefit of strategic alliances were they most likely seeking?

Why does a company always seek local partners when it expands into new markets?

How does an assigned arrangement work?

Firms involved in joint ventures experience the pitfalls of ________ when they realize that their decision-making powers are limited.

Toyota and GM created a joint venture called NUMMI because Toyota wanted to learn about how to deal with labor and parts suppliers in the U.S. market while GM wanted to observe Japanese management practices. What benefit of strategic alliances were Toyota and GM primarily seeking?