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Exam 15: Entry Strategy and Strategic Alliances

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Question 51

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Which of the following is a first-mover advantage?

A) lower research and development costs and marketing costs than other firms
B) ability to preempt rivals and capture demand by establishing a strong brand name
C) ability to capitalize on the work done by other firms
D) creation of innovative products at lower costs than other firms

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Question 52

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Why do acquisitions fail?

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Acquisitions fail for several reasons.Fi...

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Question 53

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Discuss the three primary characteristics of a good ally.

Imagine that you are meeting with your superiors to discuss entering a foreign market.Your boss has asked you to analyze a joint venture prospect.Why might you tell your boss that the joint venture is not a good idea?

If a firm is trying to enter a market where there are already well-established companies,and where global competitors are also interested in establishing a presence,the firm should choose a greenfield investment.

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

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.

Discuss the trade-offs associated with large-scale entry versus small-scale entry.

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

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

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

How can a firm protect its proprietary information in a joint venture arrangement?

What are the two methods of entering foreign marketing using a wholly owned subsidiary?

Which of the following statements about franchising is true?

_____ is pursued primarily by manufacturing firms and _____ is employed primarily by service firms.

The main advantage of greenfield investment is that it gives the firm a much greater ability to build the kind of subsidiary company that it wants.

Brand names are generally well-protected by international laws pertaining to trademarks.

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.

In _____,the contractor agrees to handle every detail of the project for a foreign client,including the training of operating personnel.

Which of the following statements is true of turnkey projects?