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International Business, 6e (Griffin/Pustay)

Chapter 13 International Strategic Alliances

1) Which of the following represents a possible form of cooperation between international firms?

A) cross-licensing of proprietary technology

B) sharing of production facilitiesC) co-funding of research projects

D) mareting of each other!s products

") all of the abo#eAnswer$ "

Diff$ 1 %age &ef$ '(

*ill$ AAC*B$ +lobali,ation

bjecti#e$ 1'.1$ Compare joint #entures and other forms of strategic alliances.

/) A 00000000 is a business arrangement whereby two or more firms choose to cooperate for

their mutual benefit.

A) competiti#e ad#antageB) licensing agreement

C) franchising arrangementD) strategic alliance

") none of the abo#e

Answer$ DDiff$ / %age &ef$ '(


') A 00000000 is a special type of strategic alliance in which two or more firms join together tocreate a new business entity that is legally separate and distinct from its parents.

A) joint #entureB) licensing agreementC) franchising arrangement

D) strategic alliance

") greenfield strategyAnswer$ A

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) 2ast 3ndustries4 Courtaulds4 and 2A* 5oldings established *limline in 166'. 7his is an

e8ample of a9n) 00000000.

A) franchising arrangementB) ac:uisition strategy

C) joint #enture

D) licensing agreement") greenfield strategy

Answer$ C

Diff$ / %age &ef$ '((*ill$ AAC*B$ +lobali,ation


;) When a firm disco#ers that it lacs all the necessary internal resources to effecti#ely compete

internationally4 it may choose to participate in 00000000.

A) e8portingB) portfolio in#estments

C) strategic alliances

D) franchising") management contracts

Answer$ C

Diff$ ' %age &ef$ '(uji4 2itsubishi4 and awasai in the

de#elopment and production of the Boeing in order to reduce its financial ris. What benefit

of strategic alliances was Boeing seeing?A) ease of maret entry

B) shared ris

C) shared nowledgeD) synergy

") all of the abo#e

Answer$ BDiff$ 1 %age &ef$ '=


bjecti#e$ 1'./$ Characteri,e the benefits of strategic alliances.

1) tis "le#ator partners with local companies in each of the foreign marets where it does

business to achie#e all of the following exceptto 00000000.A) share ris

B) share nowledge

C) gain synergiesD) ease maret entry

") a#oid double ta8ation

Answer$ "

Diff$ / %age &ef$ '1*ill$ AAC*B$ +lobali,ation


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16) 00000000 refers to #alue achie#ed through the combination of maret entry4 ris sharing4 and

learning potential that is greater than what the firm could ha#e done alone.

A) *hared risB) *hared nowledge

C) *ynergy

D) Competiti#e ad#antage") Both C and D

Answer$ "

Diff$ / %age &ef$ ''bjecti#e$ 1'./$ Characteri,e the benefits of strategic alliances.

/=) %epsiCo and 7homas . ipton Co. established a joint #enture. %epsiCo supplied an e8tensi#e

distribution networ and ipton pro#ided manufacturing e8pertise and brand recognition in teas.What benefit of strategic alliances were they seeing?

A) ease of maret entry

B) shared ris

C) shared nowledgeD) synergy

") all of the abo#eAnswer$ D

Diff$ / %age &ef$ ''


/1) 7he degree of collaboration in a strategic alliance will depend on the 00000000 of each

partner firm.A) history

B) a#ailable resources

C) basic goalsD) leadership

") all of the abo#e

Answer$ CDiff$ ' %age &ef$ '

bjecti#e$ 1'.'$ Describe the scope of strategic alliances.

//) A 00000000 occurs when the participating firms agree to perform together multiple stages ofthe process by which goods or ser#ices are brought to the maret.

A) functional alliance

B) joint #entureC) production alliance

D) process alliance

") comprehensi#e allianceAnswer$ "

Diff$ / %age &ef$ ';


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/') 2ost comprehensi#e alliances are organi,ed as 00000000.

A) nonjoint-#enture alliance

B) joint #enturesC) licensing agreements

D) management contracts

") turney projectsAnswer$ B

Diff$ 1 %age &ef$ ';


/) A mareting alliance is a type of 00000000.

A) business-le#el alliance

B) operational allianceC) corporate-le#el alliance

D) functional alliance

") ad#ertising alliance

Answer$ DDiff$ 1 %age &ef$ ';


/;) Chrysler and B2W formed a joint #enture to build engines in *outh America. What type of

alliance did they ha#e?A) franchise

B) mareting alliance

C) financial allianceD) licensing agreement

") production alliance

Answer$ "Diff$ 1 %age &ef$ ';



/() +eneral 2ills and @estle created a joint #enture which fully integrated all the efforts

necessary to compete against ellogg in the "uropean cereal maret. 7his is an e8ample of a9n)

00000000 alliance.A) functional

B) comprehensi#e

C) productionD) international

") mareting

Answer$ BDiff$ / %age &ef$ ';




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/) A comprehensi#e alliance is formed when 00000000.

A) the participating firms agree to perform together multiple stages of the process by which

goods or ser#ices are brought to the maretB) two or more firms each manufacture products or pro#ide ser#ices in a shared or common

facility

C) two or more firms share mareting ser#ices or e8pertiseD) firms form an alliance to reduce the financial riss associated with a project

") partners agree to undertae joint research to de#elop new products or ser#ices

Answer$ ADiff$ 1 %age &ef$ ';


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'1) A9n) 00000000 alliance occurs when partners share e8pertise or ser#ices related to

distribution4 pricing4 and communications.

A) productionB) international

C) mareting

D) financial") research and de#elopment

Answer$ C

Diff$ / %age &ef$ ';bjecti#e$ 1'.'$ Describe the scope of strategic alliances.

'/) A9n) 00000000 alliance is a functional alliance of firms that want to reduce financial riss

associated with a project.A) production

B) international

C) mareting


Answer$ DDiff$ / %age &ef$ '


'') B2W and the >rench automobile manufacturer %*A recently created an alliance to

manufacture new engines together. What type of alliance is this an e8ample of?


C) mareting


Answer$ A

Diff$ / %age &ef$ ';*ill$ AAC*B$ +lobali,ation


') A mareting alliance is formed when 00000000.A) the participating firms agree to perform together multiple stages of the process by which

goods or ser#ices are brought to the maret

B) two or more firms each manufacture products or pro#ide ser#ices in a shared or commonfacility

C) two or more firms share mareting ser#ices or e8pertise

D) firms form an alliance to reduce the financial riss associated with a project") partners agree to undertae joint research to de#elop new products or ser#ices

Answer$ C

Diff$ 1 %age &ef$ ';


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';) 7he apanese company Bandai and the .*. toymaer 2attel entered into a strategic alliance.

Bandai agreed to distribute 2attel products lie Barbie dolls in apan while 2attel agreed to

distribute %ower &angers in atin America. What type of alliance is this an e8ample of?A) production

B) international

C) maretingD) financial

") research and de#elopment

Answer$ CDiff$ / %age &ef$ ';



'() Boeing collaborated in a strategic alliance with >uji4 2itsubishi4 and awasai in the

de#elopment and production of the Boeing in order to reduce its financial ris. What type of

alliance is this an e8ample of?


C) maretingD) financial

") research and de#elopment

Answer$ DDiff$ / %age &ef$ '



') A financial alliance is formed when 00000000.

A) the participating firms agree to perform together multiple stages of the process by whichgoods or ser#ices are brought to the maret

B) two or more firms each manufacture products or pro#ide ser#ices in a shared or common

facilityC) two or more firms share mareting ser#ices or e8pertise

D) firms form an alliance to reduce the financial riss associated with a project

") partners agree to undertae joint research to de#elop new products or ser#ices

Answer$ DDiff$ 1 %age &ef$ '


1=


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/) Which of the following is not one of the four factors a firm should consider prior to selecting

a partner?

A) compatibilityB) potential for competitor to partner

C) nature of potential partner!s products

D) relati#e safeness of the alliance") learning potential of the alliance

Answer$ B

Diff$ ' %age &ef$ 'uji4 2itsubishi4 and awasai. Boeing is the controlling partner in the alliance.

Diff$ / %age &ef$ '=*ill$ AAC*B$ 7echnology


1';) What does globali,ation mean to C"s of multinational firms4 worers in de#eloped

countries4 and human rights acti#ists?Answer$ +lobali,ation means different things to different people. >or C"s of multinational

firms4 globali,ation means access to new consumers4 opportunities to reduce production costs by

locating factories in low-cost areas4 and the threat of new competition. >or worers in de#eloped

countries4 globali,ation can imply job insecurity and no raised. >or human rights acti#ists4globali,ation can imply e8ploitation of worers and the denial of human rights.

Diff$ / %age &ef$ '(;

*ill$ AAC*B$ +lobali,ationbjecti#e$ 1'./$ Characteri,e the benefits of strategic alliances.

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1'() Why was it important for +eneral 2ills and @estle to form a comprehensi#e joint #enture

in "urope4 rather than a mareting alliance?

Answer$ +eneral 2ills and @estle formed a comprehensi#e joint #enture in "urope calledCereal %artners Worldwide. +eneral 2ills pro#ided cereal-maing technology4 while @estle

contributed its "uropean distribution networ and name recognition. By forming a

comprehensi#e joint #enture4 the alliance in#ol#ed a complete meshing of each firm!s relati#estrengths and created a business with significant maret power. >orming an alliance that only

in#ol#ed mareting would not ha#e had the same competiti#e ad#antages.

Diff$ ' %age &ef$ ';*ill$ AAC*B$ +lobali,ation


1') Why ha#e strategic alliances become so important to the international airline industry?Answer$ 2ega alliances dominate the international airline industry. By lining up with other

firms4 airlines can offer customers more flights and more destinations4 easier transfers between

alliance members! flights4 and the opportunity to use fre:uent flyer miles earned on one carrier to

fly on another. 3n addition4 alliances pro#ide airlines with the ability to ad#ertise to a largeraudience.

Diff$ / %age &ef$ '*ill$ AAC*B$ +lobali,ation


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