Choose Correct answer 6/ the advantage(s) of a strategic alliance is/are: that i

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Choose Correct answer

6/ the advantage(s) of a strategic alliance is/are: that it allows firms to share the fixed cost of developing new products or processes b/ the benefits are always shared equally c/ it reduces the chance for competitors to obtain a low cost route to new technologies d/ all of the above 7/ Joint ventures offer the following advantages: a firm benefits from a local partner's knowledge of the host country's competitive co culture, language, political systems and business systems. b/ it gives a firm tight control over oper c/ it reduces the risk of losing control over technological competence. ations in a different country d/ all of the above 8/ The main reason for GE joint ventures to run into trouble is: al it often allows veto power over strategic decisions even to minority joint venture partners b/ it sometimes accepts a minority ownership, limiting control of the venture uses a joint venture agreement as a last resort and is not very good in managing it. d/ none of the above ertormance ambiguity exists when the causes of a subunit's poor performance are not clear. This ambiguity is low when: a/ a localization strategy is adopted. b/ a globalization strategy is adopted c/ a transnational strategy is adopted hich strategy is adopted. 10/ Brazil's G ol Airlines has become a very successful venture, the reason for that is al that it followed a proven low-cost operating model, developed by success Southwest and JetBlue. ful US airlines like b/ by being the first low-cost airline it took full advantage of "first mover advantage" and expanded aggressively. c/ it was able to tap into the investor community at Wall Street that understood their business model, as well as getting the attention of knowledgeable analysts following the company. d/ all of the above. 11/ Six Sigma is an approach that a/ minimizes the number of errors by being six standard deviations away from the mear. b/ aims to be 99.99966 percent accurate c/ aims to have only 3.4 defects per million d/ all of the above 12/ Concentrated Production Facilities are favored when: a/ trade barriers are substantial b/ fixed costs are low c/ value to weight ratio is low d/none of the above.

Explanation / Answer

6) Option d is correct. The advantages of strategic alliance are all of the above given options.

7) Option d is correct. Joint venture offer all of the above given advanatges.

8) Option a is correct. The main reason of GE joint venture to run into trouble is it often allows veto power over srtategic decisions even to minority joint venture partners.

9) Option b is correct. Performance ambiguity exists when the causes of a subunit's poor performance are not clear. The ambiguity is low when globalization strategy is adopted.

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