Question 1

In co-production, or coservice agreements, each partner is responsible for manufacturing a particular part of the product.

Accepted Answer

Co-production agreements typically involve partners sharing the responsibility of manufacturing different parts of a product, allowing each to focus on their area of expertise.

Question 2

When two companies form a joint venture, both have to invest equity into the new venture.

Accepted Answer

In a joint venture, while it's common for both companies to invest equity, it's not a strict requirement. One company could contribute resources, technology, or expertise instead of equity.

Question 3

During the process of GSA formation, foreign companies do not have to identify what selection criteria should be employed or the relative importance of each criterion.

Accepted Answer

Foreign companies participating in GSA formation must identify the selection criteria to be employed and the relative importance of each criterion, as specified by the government agency managing the procurement process.

Question 4

Americans tend to be individualistic, when it comes to when maintaining cooperation with a partner firm from a different country.

Accepted Answer

American culture values individualism and self-reliance, which can sometimes make it difficult for them to prioritize cooperation and collaboration with partners from different cultures.

Question 5

According to personal attachment, it is driven by interpersonal relationships as well as interpersonal learning of individual skills and knowledge.

Accepted Answer

Personal attachment is indeed driven by interpersonal relationships and the acquisition of individual skills and knowledge through those relationships.

Question 6

Maintaining flexibility is a virtue for avoiding conflicts.

Accepted Answer

Flexibility allows individuals to adjust to changing circumstances and find compromises, ultimately leading to less conflicts.

Question 7

The equity joint venture (EJV) is a legally and economically separate organizational entity created by two or more parent organizations that collectively invest financial as well as other resources to pursue certain objectives.

Accepted Answer

This statement accurately describes the definition of an equity joint venture.

Question 8

The contractual joint venture is a contractual agreement whereby profits and responsibilities are assigned to each party according to stipulations in a contract.

Accepted Answer

The answer of The contractual joint venture is a contractual...

Question 9

Although the two firms entering into a contractual partnership have the option of forming a limited liability entity with legal person status, most cooperative ventures involve joint activities without the creation of a new corporate entity.

Accepted Answer

Cooperative ventures often involve joint activities without creating a new corporate entity, instead of opting for a limited liability entity with legal person status.

Question 10

Non-equity cooperative ventures are forced to structure their assets, organize their production processes, and manage their operations.

Accepted Answer

Non-equity cooperative ventures, such as strategic alliances or partnerships, do not typically involve the creation of a separate legal entity or the sharing of assets. Instead, they rely on agreements between the companies to collaborate in certain areas while remaining independent entities.

Question 11

Joint exploration projects are a special type of non-equity cooperative alliance whereby the exploration costs are borne by the foreign partner, with development costs later shared by a local entity.

Accepted Answer

Joint exploration projects involve foreign partners bearing the exploration costs, while the local entity shares in the development costs.

Question 12

To ensure goal compatibility, MNEs often partner with companies that have been cooperative in the past.

Accepted Answer

MNEs prefer to partner with companies that have a track record of being cooperative in the past to ensure that goals are aligned and the partnership is productive.

Quiz 12: Building and Managing Global Strategic Alliances Gsas