Types of Alliances in Business

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Why are shareholders concerned about stock price growth-decline?

Due to the need for more companies to be listed and more trades to be processed. (correct)

Because of the heavy protection against foreign ownership in Asia/Pacific countries.

To prevent another world financial crisis through new regulatory mechanisms.

As a result of the Sarbanes-Oxley regulatory law mandating financial practices for corporations.

What is one of the benefits of global stock exchange consolidation mentioned in the text?

A decline in liquidity leading to inaccurate share prices.

Increased heavy protection against foreign ownership in Asia/Pacific countries.

More regulatory requirements for companies listed on US exchanges.

Economies of scale leading to lower transaction costs. (correct)

Why is Asia/Pacific consolidation unlikely according to the text?

To prevent another world financial crisis through regulatory mechanisms.

Due to heavy protection against foreign ownership and growth through cooperative agreements. (correct)

Because of the implementation of the Sarbanes-Oxley regulatory law in Asia/Pacific countries.

To attract more trades and listing companies by improving liquidity.

Which factor contributes to attracting more trades and listing companies in global stock exchange consolidation?

Improved liquidity leading to more accurate share prices. Signup and view all the answers

What is a possible cost-saving synergy mentioned in the text regarding global stock market consolidation?

Economies of scale leading to lower transaction costs. Signup and view all the answers

What is the role of the Sarbanes-Oxley law in relation to US exchanges according to the text?

Serving companies wanting regulatory requirements. Signup and view all the answers

Which of the following is NOT a category of strategic alliances mentioned in the text?

Mergers and acquisitions Signup and view all the answers

What is an example of a joint venture mentioned in the text?

The Nummi Corporation created by Toyota and General Motors Signup and view all the answers

Which of the following statements is true about non-equity strategic alliances?

They are carried out through contracts rather than ownership sharing. Signup and view all the answers

What is the distinction made in the text regarding foreign manufacturing subsidiaries?

The distinction between foreign production and foreign assembly. Signup and view all the answers

Which of the following is an example of an equity strategic alliance mentioned in the text?

Toyota's network of internal family and financial links with suppliers, subassemblers, and distributors Signup and view all the answers

What is GM's recent expansion strategy?

Taking minority stakes (equity percentages) in other companies around the world Signup and view all the answers

Which of the following is true about strategic alliances?

All of the above Signup and view all the answers

What is the key difference between a multinational company and a transnational company?

A multinational has a centralized management system, while a transnational does not Signup and view all the answers

Which of the following is a factor that determines a firm's market entry strategy?

All of the above Signup and view all the answers

What is the primary reason why businesses often wait to set up wholly-owned subsidiaries in foreign markets?

Because foreign markets are perceived as risky Signup and view all the answers

What is the key characteristic of a geocentric orientation according to Perlmutter's typology?

A global culture is adopted, with global products and local variations Signup and view all the answers

What is the key difference between an international company and a multinational company?

A multinational company has a centralized management system, while an international company does not Signup and view all the answers