Exam 9: Creating and Maintaining Alliances

Tariffs placed by a foreign country on the import of U.S. goods are often the motivation for joint ventures between U.S. firms and firms in that country.

The main incentive for a U.S. company to form a strategic alliance with a South African company is to

The first step in managing alliances is

What are the advantages and challenges of franchising as a type of strategic alliance?

The most common reason for outsourcing is to reduce costs. Another major reason for outsourcing is to

Outsourcing is controversial in the U.S. because it is seen as responsible for exporting jobs to other countries

Alliances for the purpose of diversification are especially valuable if

The main attraction for foreign firms in developing countries to join strategic alliances with U.S. firms is

Everything else being equal, a potential alliance partner that is engaged in alliances with a number of other partners is preferable to an alliance partner who is not involved in other alliances.

____ can enable a firm to have a first-mover advantage in a new international market without some of the risks involved in being a first mover.

Visionary Optical Research has patented a new type of implantable lens for people with serious eye defects. It does not have access to the financial assets or marketing expertise to begin manufacturing and selling the lenses on a large scale.

Corporate-level strategic alliances often serve the same purpose as acquisitions. But alliances are more costly than acquisitions.

Along with differences in cultures, the major impediment to the transfer of knowledge or sharing of other resources between companies in an international strategic alliance is

Firms often form alliances with partners from previous alliances because

The C.E.O. of Stability, Inc., a U.S. company, is considering the wisdom of an alliance with a Malaysian company. She is concerned about the fact that the Malaysian company wants to own a large percentage of the venture. The CEO

A strategic alliance is a relationship between firms in which the partners agree to cooperate in ways that provide benefits to each firm.

For an international alliance to succeed, it must be based on detailed formal contracts with extensive monitoring mechanisms.

____ resources are resources that each partner brings to the partnership that, when combined, allow for new resources or capabilities that neither firm could readily create alone.

High uncertainty in competitive markets

The main problem with relying on contracts to reduce opportunistic behavior by alliance partners is that