Question 1

GE and Snecma combined to build what?

Accepted Answer

GE (General Electric) and Snecma (a French aerospace engine manufacturer) combined their efforts to build commercial aircraft engines through their joint venture, CFM International. This collaboration has produced some of the most widely used and reliable jet engines in the commercial aviation industry.

Question 2

Who is Mitsubishi's biggest competitor?

Accepted Answer

The answer of Who is Mitsubishi's biggest competitor?
...

Question 3

Which of the following is NOT a component of a synergy and related economic benefits?

Accepted Answer

Risk increase is not a component of a synergy and related economic benefits. The other options, knowledge acquisition, economies of scale and rationalization, and competition mitigation are all common components of synergies that can result in economic benefits.

Question 4

Which of the following is NOT a criterion for selecting a partner?

Accepted Answer

While cultural differences may be a factor in partner selection for some individuals, it is not a universal criterion and there are many successful relationships that cross cultural boundaries. The other three criteria - compatibility of goals, complementarity of resources, and commitment - are commonly considered important factors in partner selection.

Question 5

The _____________________ 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

An equity joint venture is a type of joint venture where each parent organization invests capital and other resources to form a legally and economically separate entity. In this type of joint venture, both parent organizations share the ownership, profits, and losses of the venture. Therefore, A is the best choice for the given definition.

Question 6

If ownership is equal to 50 per cent, the joint venture is considered _________.

Accepted Answer

The answer of If ownership is equal to 50 per...

Question 7

Managerial control is realized through equity control and parent control.

Accepted Answer

The answer of Managerial control is realized through equity control...

Question 8

Additional economic benefits arising from cooperation between two parties which provide each other with complementary resources or capabilities are known as competitive mitigation.

Accepted Answer

The correct term for this is "complementary benefits," not competitive mitigation.

Question 9

Partnership provides an organizational vehicle for firms to slowly, yet efficiently acquire the skills that cannot be bought from a public market.

Accepted Answer

The answer of Partnership provides an organizational vehicle for firms...

Question 10

Redefinition is one of the forms of terminating a partnership.

Accepted Answer

Redefinition, also known as a change in partnership terms, is a form of terminating a partnership where the partners agree to change the terms of their partnership agreement, effectively ending the previous partnership and creating a new one with different terms.

Question 11

Synergies can be the result of risk reduction, knowledge acquisition, economies of scale, and rationalization.

Accepted Answer

Synergies can result from risk reduction, knowledge acquisition, economies of scale, and rationalization. These are all ways in which combining resources, expertise or operations can create benefits that are greater than the sum of their parts.

Question 12

One of the things that an alliance does not do is cut the cost of leaving a business.

Accepted Answer

The answer of One of the things that an alliance...

Question 13

To ensure goal compatibility, MNEs often partner with those that have been co-operated in the past.

Accepted Answer

The answer of To ensure goal compatibility, MNEs often partner...

Question 14

Commitment frompartners' opportunism fosters cooperation.

Accepted Answer

When partners commit to each other and are less likely to act in opportunistic ways, it fosters a sense of trust and cooperation between them. This encourages them to work towards mutual goals and leads to a more successful partnership.

Question 15

Siemens AG is one of the world's largest and oldest electrical Engineering and electronics companies based in Germany.

Accepted Answer

Siemens AG is indeed one of the world's largest and oldest electrical engineering and electronics companies based in Germany.

Question 16

To acquire partner knowledge, a firm needs to identify what kinds of knowledge it needs and then actively extract and transfer this needed knowledge from its partner towards its own organization.

Accepted Answer

This statement is true. To successfully acquire partner knowledge, a firm must first identify the specific knowledge that it needs from its partner. Once identified, the firm must then actively work to extract and transfer this knowledge from the partner to its own organization in a way that is beneficial and effective.

Question 17

Risk of possible leakage, potential global competitors, and differences in strategic goals are some challenges facing GSAs.

Accepted Answer

The statement is true, as GSAs face challenges such as possible leakages of information, competition from global players, and differences in strategic goals that may impact their operations.

Question 18

A GSA allows a company to enter into activities that might be too costly to pursue on its own.

Accepted Answer

A GSA (or a General Services Agreement) is a contract between two parties that allows one party to provide services or products to the other party. This agreement grants the provider access to the recipient's facilities or resources, which can make it easier and more cost-effective to undertake certain activities, such as research and development, manufacturing, or marketing. Therefore, a GSA can provide a way for a company to pursue activities that might be too costly to pursue on its own.

Question 19

Financial, Operational, and Technological are all economic benefits in Synergy.

Accepted Answer

Synergy refers to the combined economic benefits that result from two or more businesses or organizations working together. These benefits can include financial, operational, and technological advantages.

Question 20

A GSA allows a firm to bypass entry barriers into a target foreign country.

Accepted Answer

A General Sales Agent (GSA) can help a firm to bypass entry barriers into a target foreign country by providing the necessary expertise, resources, and connections needed to successfully enter and operate in the market.

Quiz 12: Building and Managing Global Strategic Alliances Gsas