Exam 15: Entry Strategy and Strategic Alliances

Under ________ 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.

Exporting from a firm's home base is most appropriate when lower-cost locations for manufacturing the product can be found abroad.

A wholly owned subsidiary is appropriate when the firm wants

________ can be used to formalize arrangements to swap skills and technology in a strategic alliance.

Discuss the three primary characteristics of a good ally.

Which of the following is true of strategic alliances?

Which of the following is a distinct advantage of exporting?

What is the primary advantage of licensing?

Managing an alliance successfully requires building interpersonal relationships between the firms' managers. This is sometimes referred to as

Which of the following is true of establishing a greenfield venture in a foreign country? 

Turnkey projects are most common in which of the following industries?

A disadvantage of ________ is that the firm that enters into such an arrangement will have no long-term interest in the foreign country.

Firms entering markets where there are no incumbent competitors to be acquired should choose

The most typical joint venture is a 60-40 venture, in which one party holds most of the ownership stake.

When technological know-how constitutes a firm's core competence, which entry mode is the optimal choice?

In ____, the contractor agrees to handle every detail of the project for a foreign client, including the training of operating personnel.

A ________ entails establishing a firm that is owned together by two or more otherwise independent firms.

Educating customers is an element of pioneering costs.

Which of the following statements about franchising is true?

The costs and risks associated with doing business in a foreign country are typically