Chapter 09-1 - Chapter 9 International Strategic Alliances:...

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Chapter 9 International Strategic Alliances: Management and Design MULTIPLE CHOICE 1. There are several issues to consider in picking a partner for a strategic alliance. One of these is a. Go for the biggest partner possible because they have the most assets. b. Seek strategic complementarity. c. Make sure your partner will be dependent on you and not vice versa. d. All of the above ANS: B AACSB Reflective thinking, Group dynamics PTS: 1 2. According to the text, all of the following are true about strategic alliances EXCEPT a. They are inherently unstable and provide significant management challenges. b. Estimates of failure rates range from 30 to 60 percent. c. They are among the most popular choice to go international. d. They are used mostly as a means to share technology. ANS: D AACSB Reflective thinking, Group dynamics PTS: 1 3. The most important decision in setting up a strategic alliance is usually about a. Working out the proportions of ownership. b. Decision on the proper management structure. c. Developing a detailed contract. d. Selecting the right partner. ANS: D AACSB Reflective thinking, Group dynamics PTS: 1 4. In operations alliances, multinational companies a. Use research and development to merge different technical skills. b. Share the risk of developing new or costly technology. c. Gain access to new markets. d. Combine manufacturing to reach a profitable volume of activity. ANS: D AACSB Reflective thinking, Group dynamics PTS: 1 5. The anchor partner in a strategic alliance refers to a. A partner that is very stable and anchors the relationship. b. The strongest partner in the relationship. c. The partner who initiates the relationship. d. A partner that fails to deliver their share of funding.
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ANS: D AACSB Reflective thinking, Group dynamics PTS: 1 6. The best level of dependency recommended for a strategic alliance is a. Balanced. b. Home country dominated. c. Host country dominated. d. It does not matter if there are more than two companies. ANS: A AACSB Reflective thinking, Group dynamics PTS: 1 7. The elephant and the ant complex refers to a. Difficulties that come with two different size organizations in a strategic alliance. b. Problems that arise when one side feels inferior to the other. c. Strategic alliances between developed and developing countries. d. An unbalanced management structure. ANS: A AACSB Reflective thinking, Group dynamics PTS: 1 8. An agreement not legally biding between companies to cooperate on any value-chain activity is a (an) a. Formal international cooperative alliance. b. International joint venture. c. Informal international joint venture. d. International cooperative alliance. ANS: C AACSB Reflective thinking, Group dynamics PTS: 1 9. When a large number of companies form a joint venture, the international joint venture is a a. Multi-partner joint venture. b.
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This note was uploaded on 01/14/2012 for the course SPANISH 2020 taught by Professor Laurila during the Spring '11 term at Tennessee Martin.

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Chapter 09-1 - Chapter 9 International Strategic Alliances:...

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