Chapter 10

Which of the following best reflects the nature of cross-border alliances compared to domestic alliances, especially in emerging markets?
1. highly leveraged and tightly monitored
2. flexible and trust-based
3. complex and risky
4. uncertainty reducing and diversifying
In the franchising strategy, the most important competitive advantage for the franchisee is the franchisor's:
1. brand name.
2. capital resources.
3. geographic locations.
4. access to a consolidated market.
One disadvantage of developing effective monitoring systems to manage a strategic alliance is that:
1. firms will have to accept greater risks.
2. trust will be eroded.
3. responses to opportunities can be precluded.
4. power coalitions will still develop.
A nonequity strategic alliance exists when:
1. the partners agree to sell bonds instead of stock in order to finance a new venture.
2. two or more firms have a contractual relationship to share resources and capabilities.
3. two firms join together to create a new company.
4. two partners in an alliance own unequal shares in the combined entity.
Which of the following is a competitive advantage that is developed through a cooperative strategy?
1. a relational advantage
2. a collusive advantage
3. a economic advantage
4. an alliance advantage
In free market economies, who must decide how rivals can collaborate with their competitors without violating established regulations?
1. the business community
2. consumers
3. the government
4. the invisible hand
On which stratagey do McDonald's, Hilton International, and Subway all heavily rely?
1. cross-border alliances
2. transnational
3. network cooperative
4. franchising cooperative
Why are alliances in the airline industry unstable?
1. The industry is declining and profits are not sufficient to divide among partners.
2. The potential for firms to take opportunistic actions is too widespread.
3. alliances require cooperation among firms that must also compete
4. Unstable industries make for unstable alliances.
In which markets do firms cooperate to pool resources and gain market power.
1. fast-cycle
2. standard-cycle
3. hyper-cycle
4. slow-cycle
A manufacturer of specialty jams and jellies has decided to ally itself with an orchard and vineyard growing rare strains of fruit. Which of the following describes this strategy?
1. networking
2. vertical complementary
3. horizontal complementary
4. uncertainty reduction

Chapter 10

Quiz