Question 1

A 50:50 ownership structure is required in a joint venture.

Accepted Answer

A) True 
 B)False

Question 2

What are the various forms that strategic alliances can take? What are the benefits of strategic alliances?

Accepted Answer

Cooperation between international firms

Question 3

A comprehensive alliance is formed when two or more firms ________.

Accepted Answer

A)  integrate different operating procedures to bring goods or services to the market 
B)  manufacture products or provide services in a shared or common facility 
C)  share marketing services or expertise 
D)  reduce their financial risks 
A)  integrate different operating procedures to bring goods or services to the market 
B)  manufacture products or provide services in a shared or common facility 
C)  share marketing services or expertise 
D)  reduce their financial risks

Question 4

A public-private venture is a joint venture that involves a partnership between a privately owned firm and a ________.

Accepted Answer

A)  financial institution 
B)  rival corporation 
C)  board of directors 
D)  government 
A)  financial institution 
B)  rival corporation 
C)  board of directors 
D)  government

Question 5

Which of the following is responsible for making day-to-day decisions and strategy implementation in a delegated arrangement?

Accepted Answer

A)  both alliance partners 
B)  joint venture executives 
C)  one of the alliance partners 
D)  shareholders and stockholders 
A)  both alliance partners 
B)  joint venture executives 
C)  one of the alliance partners 
D)  shareholders and stockholders

Question 6

Sharing risk in a strategic alliance is most important for a firm that is entering a(n) ________ market.

Accepted Answer

A)  competitive 
B)  established 
C)  high-tech 
D)  new 
A)  competitive 
B)  established 
C)  high-tech 
D)  new

Question 7

Under the agreement between Coca-Cola and Danone each company supplies three members of the joint venture's board of directors. What management form is this an example of?

Accepted Answer

A)  shared management agreement 
B)  assigned arrangement 
C)  delegated arrangement 
D)  consensual arrangement 
A)  shared management agreement 
B)  assigned arrangement 
C)  delegated arrangement 
D)  consensual arrangement

Question 8

What is the primary difference between a joint venture and a non-joint venture strategic alliance?

Accepted Answer

A)  level of political, cultural and financial risk for each firm 
B)  formation of a third, legally separate business entity 
C)  amount of financial investment required 
D)  geographic location of the alliance 
A)  level of political, cultural and financial risk for each firm 
B)  formation of a third, legally separate business entity 
C)  amount of financial investment required 
D)  geographic location of the alliance

Question 9

Joint ventures tend to have a longer duration than non-joint venture strategic alliances.

Accepted Answer

A) True 
 B)False

Question 10

Public-private ventures are most important in market-driven economies.

Accepted Answer

A) True 
 B)False

Question 11

What strategy is frequently used by Otis Elevator when it enters a new foreign market?

Accepted Answer

A)  investing in the local infrastructure to improve safety 
B)  providing specialized training to local workers 
C)  waiting for competitors to enter a market first 
D)  seeking local partners to minimize risks 
A)  investing in the local infrastructure to improve safety 
B)  providing specialized training to local workers 
C)  waiting for competitors to enter a market first 
D)  seeking local partners to minimize risks

Question 12

All of the following are standard approaches to strategic alliance management EXCEPT ________.

Accepted Answer

A)  shared management agreements 
B)  assigned arrangements 
C)  delegated arrangements 
D)  consensual arrangements 
A)  shared management agreements 
B)  assigned arrangements 
C)  delegated arrangements 
D)  consensual arrangements

Question 13

Agro Corporation, a French firm, formed a joint venture with Woxhu, a Chinese firm. According to the text, which of the following has the most power to make decisions in this joint venture?

Accepted Answer

A)  CCP party secretary 
B)  managing partners 
C)  board of directors 
D)  alliance CEO 
A)  CCP party secretary 
B)  managing partners 
C)  board of directors 
D)  alliance CEO

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

What are the five primary pitfalls of strategic alliances? Describe each and explain which one you think is most difficult to avoid.

Accepted Answer

The five pitfalls are incompatibility of

Question 16

What is a comprehensive alliance?

Accepted Answer

A comprehensive alliance occur

Question 17

Most comprehensive alliances are organized as ________.

Accepted Answer

A)  joint ventures 
B)  licensing agreements 
C)  management contracts 
D)  turnkey projects 
A)  joint ventures 
B)  licensing agreements 
C)  management contracts 
D)  turnkey projects

Question 18

Avia Battery and Simon Battery both manufacture batteries in a shared facility. The two firms have most likely established a(n) ________ alliance.

Accepted Answer

A)  production 
B)  marketing 
C)  financial 
D)  R & D 
A)  production 
B)  marketing 
C)  financial 
D)  R & D

Question 19

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?

Accepted Answer

A)  financial alliance 
B)  functional alliance 
C)  manufacturing alliance 
D)  comprehensive alliance 
A)  financial alliance 
B)  functional alliance 
C)  manufacturing alliance 
D)  comprehensive alliance

Question 20

Mutual trust is an important component of compatibility.

Accepted Answer

A) True 
 B)False

A 50:50 ownership structure is required in a joint venture.

What are the various forms that strategic alliances can take? What are the benefits of strategic alliances?

A comprehensive alliance is formed when two or more firms ________.

A public-private venture is a joint venture that involves a partnership between a privately owned firm and a ________.

Which of the following is responsible for making day-to-day decisions and strategy implementation in a delegated arrangement?

Sharing risk in a strategic alliance is most important for a firm that is entering a(n) ________ market.

Under the agreement between Coca-Cola and Danone each company supplies three members of the joint venture's board of directors. What management form is this an example of?

What is the primary difference between a joint venture and a non-joint venture strategic alliance?

Joint ventures tend to have a longer duration than non-joint venture strategic alliances.

Public-private ventures are most important in market-driven economies.

What strategy is frequently used by Otis Elevator when it enters a new foreign market?

All of the following are standard approaches to strategic alliance management EXCEPT ________.

Agro Corporation, a French firm, formed a joint venture with Woxhu, a Chinese firm. According to the text, which of the following has the most power to make decisions in this joint venture?

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

What are the five primary pitfalls of strategic alliances? Describe each and explain which one you think is most difficult to avoid.

What is a comprehensive alliance?

Most comprehensive alliances are organized as ________.

Avia Battery and Simon Battery both manufacture batteries in a shared facility. The two firms have most likely established a(n) ________ alliance.

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?

Mutual trust is an important component of compatibility.

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, Accounting, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

International Trade and Investment

The International Monetary System and the Balance of Payments

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Cooperation Among Nations

International Strategic Management

Strategies for Analyzing and Entering Foreign Markets

International Organization Design and Control

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

Filters

Exam 13: International Strategic Alliances

A 50:50 ownership structure is required in a joint venture.

What are the various forms that strategic alliances can take? What are the benefits of strategic alliances?

A comprehensive alliance is formed when two or more firms ________.

A public-private venture is a joint venture that involves a partnership between a privately owned firm and a ________.

Which of the following is responsible for making day-to-day decisions and strategy implementation in a delegated arrangement?

Sharing risk in a strategic alliance is most important for a firm that is entering a(n) ________ market.

Under the agreement between Coca-Cola and Danone each company supplies three members of the joint venture's board of directors. What management form is this an example of?

What is the primary difference between a joint venture and a non-joint venture strategic alliance?

Joint ventures tend to have a longer duration than non-joint venture strategic alliances.

Public-private ventures are most important in market-driven economies.

What strategy is frequently used by Otis Elevator when it enters a new foreign market?

All of the following are standard approaches to strategic alliance management EXCEPT ________.

Agro Corporation, a French firm, formed a joint venture with Woxhu, a Chinese firm. According to the text, which of the following has the most power to make decisions in this joint venture?

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

What are the five primary pitfalls of strategic alliances? Describe each and explain which one you think is most difficult to avoid.

What is a comprehensive alliance?

Most comprehensive alliances are organized as ________.

Avia Battery and Simon Battery both manufacture batteries in a shared facility. The two firms have most likely established a(n) ________ alliance.

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?

Mutual trust is an important component of compatibility.

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, Accounting, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

International Trade and Investment

The International Monetary System and the Balance of Payments

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Cooperation Among Nations

International Strategic Management

Strategies for Analyzing and Entering Foreign Markets

International Organization Design and Control

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

Filters