Exam 15: Entry Strategy and Strategic Alliances

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

Firms entering a market via a wholly owned subsidiary must bear all the costs and risks associated with the venture.

Which of the following is a disadvantage of licensing?

Discuss the three primary characteristics of a good ally.

Cross-licensing agreements are increasingly common in the _____ industries.

Briefly explain the advantages and disadvantages of franchising agreements.

Which of the following statements is true of turnkey projects?

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

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.

A wholly owned subsidiary limits a firm's control over operations in different countries.

When an exporting firm finds that its local agent is also carrying competitors' products, the firm may switch to a _____ to handle local marketing, sales, and service.

The most typical joint venture is a _____ venture.

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

Which of the following is an advantage of franchising?

An alliance is a way to bring together complementary skills and assets that neither company could easily develop on its own.

A large-scale entrant is more likely than a small-scale entrant to be able to capture first-mover advantages associated with ____.

A firm can establish a wholly owned subsidiary in a country by building a subsidiary from the ground up, called the ____.

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

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?

For a company whose core competency is management know-how, explain which entry mode would be optimal.