Question 1

Goal complementarity is the extent to which one party's contributed resources are complementary to the other party's resources, resulting in synergies pursued by both.

Accepted Answer

False

Question 2

Which of these is not included in capability?

Accepted Answer

B

Question 3

GSAs allow smaller firms to share financial resources with greater ___________ that enables them to compete with larger firms in the industry.

Accepted Answer

GSAs (Group Service Agreements) allow smaller firms to benefit from economies of scale, which means that by pooling their resources and purchasing power, these firms can benefit from lower costs and better negotiating power, enabling them to compete with larger firms in the industry. The other options listed (inventory, trust, and cash flows) may be important factors in business operations, but they do not directly relate to the benefits of a GSA.

Question 4

This term is often used to describe what a foreign firm might be doing by starting a GSA with a local partner to gain access to the local market.

Accepted Answer

Piggybacking refers to the practice of a foreign firm partnering with a local company to gain access to the local market. The local company provides valuable knowledge and expertise about the market while the foreign firm brings in new technology and capital.

Question 5

Which of these is not a result of an economic benefit?

Accepted Answer

Knowledge acquisition is not a result of an economic benefit. Market entry is a result of an economic benefit.

Question 6

What are other names for ownership structure?

Accepted Answer

Ownership structure can be referred to by various terms, including sharing arrangement, equity ownership, and equity distribution, as they all relate to how ownership is divided or structured among stakeholders.

Question 7

What two areas are learning opportunities manifested into?

Accepted Answer

Learning opportunities are typically manifested into operational and managerial areas. Operational areas involve improving processes, workflows, and efficiencies within the organization, while managerial areas involve leadership and strategic decision-making. Organizational and technological areas are also important but not as directly related to learning opportunities.

Question 8

Comparative joint ventures are attractive for what reason?

Accepted Answer

Comparative joint ventures offer all of the benefits listed - the freedom to structure assets, organize production processes, and manage operations. These ventures allow companies to combine their strengths and resources to enter a new market, while also sharing the risks and costs of the venture. By working together, companies can achieve operational efficiencies and create a competitive edge in the market.

Question 9

What is the biggest factor for most companies thinking about becoming a GSA?

Accepted Answer

The biggest factor for most companies thinking about becoming a GSA is that it is too costly to do alone. GSA (General Services Administration) contracts provide businesses with the opportunity to sell their products or services to the federal government. However, the process of obtaining a GSA contract can be complex and time-consuming. For many businesses, becoming a GSA schedule holder is not a viable option without the resources and expertise of a GSA consultant or partner.

Question 10

Access to a partner's _______________ enables a firm to enjoy the fruits of research and development while avoiding the rapid escalating R&D costs.

Accepted Answer

Access to a partner's technology allows a firm to use existing research and development without incurring additional costs. It can also help to accelerate the development of products, as the technology is already available, and can be a cost-effective way of entering new markets.

Question 11

Joint exploration is a special type of non-equity co-operative alliance where the foreign partner assumes the exploration costs and ______________ costs are later shared by the local entity.

Accepted Answer

Joint exploration involves the foreign partner assuming the exploration costs and the local entity sharing the development costs, which includes costs associated with developing or extracting resources. Therefore, the correct choice is C) development. Sunk costs are costs that have already been incurred and cannot be recovered, hidden costs are costs that are not immediately apparent, and labor costs are only a part of the overall development costs.

Question 12

Which is not a sub-form of a cooperative joint venture?

Accepted Answer

Independent marketing is not a sub-form of a cooperative joint venture. Joint exploration, co-production, and research and development consortia are all sub-forms of cooperative joint ventures where two or more companies collaborate to achieve a common goal. Independent marketing involves one company marketing and selling its products or services without the involvement of another company.

Question 13

What type of venture is it when each partner is responsible for manufacturing a particular part of the product?

Accepted Answer

Co-production is a type of venture where partners are responsible for manufacturing different parts of the product. Each partner focuses on their area of expertise, leading to a more efficient and effective production process.

Question 14

The greater the resource complementarity between foreign and local parents, the higher the new value added owing to superior integration of complementary resources pooled by different parents.

Accepted Answer

The statement is true. When foreign and local parents have complementary resources, they can integrate them effectively to create new value added. This is because the pooled resources are more diverse and can create synergies that would not be possible if the parents had similar resources.

Question 15

Strategic capabilities of a partner firm generally include such areas as market power, marketing competence, technological skills, relationship building, industrial experience, and corporate image.

Accepted Answer

The statement accurately identifies several common strategic capabilities of partner firms.

Question 16

Financial capabilities include organizational skills, previous collaboration, learning ability, and foreign exchange experience.

Accepted Answer

Financial capabilities typically refer to the ability to manage financial resources effectively, including budgeting, investing, saving, and understanding financial markets and products. Organizational skills, previous collaboration, and learning ability are more general skills that can contribute to financial capabilities but are not financial capabilities themselves. Foreign exchange experience is more specific to understanding and participating in currency markets, which is a part of financial capabilities but not a comprehensive definition.

Question 17

A majority equity holding means that the partner has more at stake in the alliance than the other partner(s)

Accepted Answer

A majority equity holding means that the partner holds more equity and therefore has more at stake and control in the alliance than the other partner(s) holding minority equity.

Question 18

To acquire partner knowledge, a firm needs to first identify what knowledge it needs and then extract and transfer this knowledge from its partner to its own organization.

Accepted Answer

Acquiring partner knowledge requires identifying the necessary knowledge and transferring it from the partner organization to one's own organization.

Question 19

There are several ways to protect core knowledge from uncompensated leakage to partner firms. One method is that the design, development, manufacture, and service of a product manufactured (or a service rendered) by an alliance may be structured to protect the most sensitive technologies.

Accepted Answer

By structuring the design, development, manufacture, and service of a product or service in a way that protects the most sensitive technologies, core knowledge can be protected from uncompensated leakage to partner firms.

Question 20

What type of control regulates most of the GSAs activities?

Accepted Answer

Managerial control is the primary type of control that regulates the activities of the General Services Administration (GSA), focusing on the management and administration of services, policies, and procedures to ensure efficiency and effectiveness in government operations.

Quiz 12: Building and Managing Global Strategic Alliances Gsas