Exam 15: Entry Strategy and Strategic Alliances

An arrangement whereby a firm grants the right of intangible property to another entity for a specified time period in exchange for royalties is a(n)_____ agreement.

Discuss strategic alliances.How successful are they? Why do firms form strategic alliances?

Compare and contrast licensing agreements and franchising agreements.

Which of the following is true of wholly owned subsidiaries?

Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs.

Discuss the advantages of using a joint venture to enter foreign markets.

By its very nature,licensing increases a firm's ability to utilize a coordinated strategy.

Relational capital refers to the building of interpersonal relationships between the firms' managers in a strategic alliance.

Which of the following is an advantage of franchising?

The most typical joint venture is a _____ venture.

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

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.

Switching costs:

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

Overpayment for assets of an acquired firm is one reason acquisitions fail.

Which of the following statements about franchising is true?

Cross-licensing agreements can be used to formalize arrangements to swap skills and technology in a strategic alliance.

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

An advantage of turnkey projects is that the firm that enters into a turnkey deal will have no long-term interest in the foreign country.

Which of the following statements is true of strategic alliances?