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[solution]: Chapter 7 Global Alliances and Strategy Implementation


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1) ________ are partnerships between two or more firms that decide they can better pursue their mutual goals by combining their resources as well as their existing distinctive competitive advantages. A) Greenfield investments B) Strategic alliances C) Foreign subsidiaries D) Turnkey operations 2) Alliances are also known as ________. A) competitive strategies B) cooperative strategies C) relational strategies D) virtual strategies 3) ________ are transition mechanisms that propel the partners' strategies forward in a turbulent environment faster than would be possible for each company alone. A) Cooperative strategies B) Entry strategies C) Options strategies D) Competitive strategies 4) A ________ is a new independent entity that is collectively created and owned by two or more parent companies. A) subsidiary B) joint venture C) greenfield investment D) turnkey operation 5) SoftCorp and TechGig, upcoming software companies in San Diego, have decided to create a new and independent telecommunications company, ST-source. Each parent firm has agreed to have 50 percent equity in the new company. This is an example of a(n) ________. A) e-business B) subsidiary C) franchise D) joint venture 6) A(n) ________ refers to a JV among companies in different countries. A) international joint venture B) equity joint venture C) global joint venture D) transnational joint venture 7) Which of the following is the most beneficial aspect of an international joint venture? A) the international partner receives the entire profit B) the responsibility of risks is solely taken by the international partner C) the partner's local contacts and markets will be utilized D) the entire cost of production will be borne by the local partner 8) Trout Corp., Kirgo Ltd., and Sturgeon Inc., three of the leading construction companies in the U.S., have decided to join hands and create a new cement manufacturing company. According to their agreement, Trout Corp. will have 50 percent equity, Kirgo Ltd. will have 20 percent equity, and Sturgeon Inc. will have 30 percent equity. In this given scenario, Sturgeon Inc. is referred to as a(n) ________. A) minority JV partner B) majority JV partner C) sole proprietor D) franchisor 9) Alliances in which two or more partners have different relative ownership shares in the new venture are called ________. A) cultural strategic alliances B) equity strategic alliances C) non-equity strategic alliances D) transmodal strategic alliances 10) France's Thomson Electronics combined with China's TCL to form TCL-Thomson Electronics. Thomson owns 33% and TCL owns the remaining 67% of TCL-Thomson Electronics. This is best described as a(n) ________. A) turnkey operation B) acquisition C) international licensing agreement D) equity strategic alliance

 


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