Exam 4: Integration and Its Alternatives

Which of the following is true with regard to the difference in exchange costs between an item produced internally firm and an item purchased from an outside supplier through an arm's length market transaction as the level of asset specificity increases?

What Japanese term describes a labyrinth of firms with long-term semi-formal relationships up and down the vertical chain?

The concept of who gets to control resources,make decisions and allocate profits is known as:

Suppose we have two firms (Firm 1 & Firm 2)enter into a transaction where Firm 1 is upstream of firm 2 in a vertical chain.What term best describes the organization of the transaction where Firm 1 owns the assets of Firm 2?

According to the GHM Theory,the choice between an in-house sales force versus independent agents should turn on the relative importance of investments in developing persistent clients by the agent versus list-building activities by the insurance firm.What would GHM thus predict about the sales of whole life versus term life insurance?

Which of the following is not a benefit that Toys "R" Us gained through its alliance with McDonald's Japan?

What term does Uzzi use to describe relationships characterized by trust and a willingness to exchange closely held information and work together to solve problems?

Which of the following causes finished goods prices not to maximize the joint profits of a manufacturer and its supplier?

What type of strategic alliance involves two or more firms creating and together owning a new independent organization?

Which of the following in the late 19ᵗʰ century was predicted by the firm-size hypothesis?

Why are the current health care systems on the rise being built around the integration of clinical information technology and disease management systems?

What term describes when a firm is using the least-cost production process?