Exam 15: Entry Strategy and Strategic Alliances

Early entrants to a market that are able to create switching costs that tie the customer to the product are capitalizing on:

How can a firm increase the probability of selecting a good partner?

_____ is advantageous because it avoids the cost of establishing manufacturing operations in the host country and because it may help a firm achieve experience curve and location economies.

Consider why a firm should enter a market via a wholly owned subsidiary. What are the advantages and disadvantages of this type of strategy?

Why should a firm be cautious about entering a licensing agreement?

Discuss the trade-offs associated with large-scale entry versus small-scale entry.

Which of the following is a distinct advantage of exporting?

The valuable asset of firms, whose competitive advantage is based on management know-how, is their _____.

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?

Explain the term relational capital and the importance this concept plays in managing an effective business alliance.

The most typical joint venture is a _____ venture.

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

A joint venture is often politically more acceptable than a wholly owned subsidiary and brings a degree of local knowledge to the subsidiary.

Firms engaging in a _____ with a local company can benefit from a local partner's knowledge of the host country's competitive conditions, culture, language, political systems, and business systems.

Tangible property includes patents, designs, copyrights, and trademarks.

A strategic commitment can be reversed by the top management according to their convenience.

Under a(n) _____ 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.

Contractual safeguards cannot be written into an alliance agreement to guard against the risk of opportunism by a partner.

A _____ is more likely to capture first-mover advantages associated with demand preemption, scale economies, and switching costs.

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