WPC 480 CHAPTER 9 QUIZ WITH 100% CORRECT ANSWERS ALREADY GRADED A+.

b A common reason firms enter into cross-border strategic alliances is: a. complete control over their foreign operations. b. limited domestic growth opportunities and foreign government economic policies. c. abundance of domestic growth opportunities and foreign government economic policies. d. help from domestic partners from an operational perspective. a A strategy through which a firm collaborates with one or more companies to expand its operations is called: a. corporate-level cooperative strategy. b. diversifying strategic alliance. c. synergistic strategic alliance. d. cross-border strategic alliance. b What is explicit collusion? a. A form of competition-reducing strategy in which several firms indirectly coordinate their production and pricing decisions by observing each other's actions and responses b. A form of competition-reducing strategy in which two or more firms negotiate directly to determine the amount to produce and the prices for the product c. A form of competition-reducing strategy in which firms do not take competitive actions against rivals d. A form of competition-reducing strategy in which firms share some of their resources from different stages of the value chain to create competitive advantage a Because the resources and relationships among partners is complex, most R&D strategic alliances are what type? a. Equity b. Nonequity c. Cross-border d. Joint venture c A car manufacturer and its partner in a cooperative strategic alliance have very minimal contract terms. Both firms are hoping to learn from each other to develop new, value-creating, innovative products. By implementing very few contractual terms in their alliance, the two firms are managing their cooperative strategy using which approach? a. Cost maximization b. Cost minimization c. Opportunity maximization d. Opportunity minimization a The main objective of the collaborating firms in a cooperative strategy is to: a. increase competitive advantage. b. neutralize each other's competitive advantage. c. decrease the other's competitive advantage. d. decrease both partners' competitive advantage. b A tech startup is exploring ways to develop an app that allows patients to visit their doctors virtually. The startup is partnering with a local practice to compile data, including symptoms, common ailments, and clinical expertise, to be accessible through the interface of the app. The company anticipates the project will take two to three years. What type of business-level strategy best fits this partnership? a. Competition-reducing strategy b. Vertical complementary strategic alliance c. Uncertainty-reducing strategy d. Competition response strategy b When a company in a cooperative strategy is implementing mechanisms to ensure that its partner does not use its trade secrets to benefit outside the relationship alone, a firm is practicing which cooperative strategy management practice? a. Cost maximization b. Cost minimization c. Opportunistic minimization d. Opportunity maximization a In order to remain relevant, firms must explore opportunities to maintain or increase their competitive advantage at all times. In doing so, some opportunities may be out of reach of the firm's normal capabilities. By entering into strategic alliances, how can a firm achieve competitive advantage? a. Partnering with another firm in a strategic alliance and trading valuable resources enables both firms to further develop their products or markets to gain competitive advantage. b. Both firms can achieve competitive advantage over one another, even if they are operating in the same product market, by using each other's most valuable resources. c. Both firms can behave opportunistically towards one another to keep the other from gaining competitive advantage. d. One firm can gain competitive advantage by taking advantage of its partner's resources and giving its partner less valuable resources. a How is an opportunity maximization approach a more effective alternative to the cost minimization approach of managing cooperative strategy? a. Opportunity maximization comes with a high level of trust between partners, which leads to an increased likelihood of success. b. Opportunity maximization enables firms to decrease their cost structure, which leads to an increased likelihood of success. c. Opportunity maximization leads to more definite contractual obligations for each partner, which leads to an increased likelihood of success. d. Opportunity maximization allows firms to take advantage of each other's resources without limitations imposed by one another.