Exam 15: Entry Strategy and Strategic Alliances

Many American firms that sold oil-refining technology to firms in the Gulf now find themselves competing with these firms in the world oil market. This is an example of:

Discuss the three primary characteristics of a good ally.

Large strategic commitments:

Explain the idea of a turnkey project. Why should a firm use this arrangement to expand internationally? In what industries are turnkey arrangements most common?

The costs of promoting and establishing a product offering when a firm enters a foreign market prior to its rivals are known as _____.

To maximize the learning benefits of an alliance, a firm must try to learn from its partner and then apply the knowledge within its own organization.

The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential.

A(n) _____ is a way to bring together complementary skills and assets that neither company could easily develop on its own.

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

What are first-mover advantages? Discuss these advantages.

The main advantage of _____ is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants.

In a(n) _____, the contractor agrees to handle every detail of the project for a foreign client.

If a firm is trying to enter a market where there are already well-established companies, and where global competitors are also interested in establishing a presence, the firm should choose a(n) _____.

Which of the following is a first-mover advantage?

There are several disadvantages of franchising as an entry mode. Which of the following is one of them?

How can a firm protect its proprietary information in a joint venture arrangement?

Licensing limits the firm's ability to realize experience curve and location economies by producing its product in a centralized location.

Explain the relationship between first-mover disadvantages and pioneering costs.

If a firm can realize location economies by moving production elsewhere, it should avoid _____.

An advantage of _____ with a local partner is the knowledge of the local environment that the local partner contributes to the venture.