The benefits and downsides of each mechanism. Introduction: Equity: The alliance where there will be a purchase of equipment in the partner firm, or stake, or investment in the plant or equipment. Non-equity: The alliance will only deal with the licensing, supply or distribution agreements between the two firms. Joint venture: The company that is created by two or more parent firms together is known as a joint venture.

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Answer 1

Question

Chapter 9, Problem 1DQ

Summary Introduction

To explain: The benefits and downsides of each mechanism.

Introduction:

Equity:

The alliance where there will be a purchase of equipment in the partner firm, or stake, or investment in the plant or equipment.

Non-equity:

The alliance will only deal with the licensing, supply or distribution agreements between the two firms.

Joint venture:

The company that is created by two or more parent firms together is known as a joint venture.

Expert Solution & Answer

Explanation of Solution

Non-Equity:

Benefits:

It is flexible and fast.
It is easy to begin or terminate.

Downsides:

The alliance is weak.
There will be a lack of trust and commitment.

Equity:

Benefits:

The tie is stronger.
It has more trust and commitment.
It can look into new technologies.

Downsides:

It has less flexibility.
It is slower.
It can entail significant investments.

Joint venture:

Benefits:

It is the strongest alliance.
It has more trust and commitment.
It will require an institutional setting.

Downsides:

It can entail longer investments and negotiations.
The managers have to follow double reporting lines.

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Answer 2

Question

Chapter 9, Problem 1DQ

Summary Introduction

To explain: The benefits and downsides of each mechanism.

Introduction:

Equity:

The alliance where there will be a purchase of equipment in the partner firm, or stake, or investment in the plant or equipment.

Non-equity:

The alliance will only deal with the licensing, supply or distribution agreements between the two firms.

Joint venture:

The company that is created by two or more parent firms together is known as a joint venture.

Expert Solution & Answer

Explanation of Solution

Non-Equity:

Benefits:

It is flexible and fast.
It is easy to begin or terminate.

Downsides:

The alliance is weak.
There will be a lack of trust and commitment.

Equity:

Benefits:

The tie is stronger.
It has more trust and commitment.
It can look into new technologies.

Downsides:

It has less flexibility.
It is slower.
It can entail significant investments.

Joint venture:

Benefits:

It is the strongest alliance.
It has more trust and commitment.
It will require an institutional setting.

Downsides:

It can entail longer investments and negotiations.
The managers have to follow double reporting lines.

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Answer 3

Question

Chapter 9, Problem 1DQ

Summary Introduction

To explain: The benefits and downsides of each mechanism.

Introduction:

Equity:

The alliance where there will be a purchase of equipment in the partner firm, or stake, or investment in the plant or equipment.

Non-equity:

The alliance will only deal with the licensing, supply or distribution agreements between the two firms.

Joint venture:

The company that is created by two or more parent firms together is known as a joint venture.

Expert Solution & Answer

Explanation of Solution

Non-Equity:

Benefits:

It is flexible and fast.
It is easy to begin or terminate.

Downsides:

The alliance is weak.
There will be a lack of trust and commitment.

Equity:

Benefits:

The tie is stronger.
It has more trust and commitment.
It can look into new technologies.

Downsides:

It has less flexibility.
It is slower.
It can entail significant investments.

Joint venture:

Benefits:

It is the strongest alliance.
It has more trust and commitment.
It will require an institutional setting.

Downsides:

It can entail longer investments and negotiations.
The managers have to follow double reporting lines.

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Answer 4

Question

Chapter 9, Problem 1DQ

Summary Introduction

To explain: The benefits and downsides of each mechanism.

Introduction:

Equity:

The alliance where there will be a purchase of equipment in the partner firm, or stake, or investment in the plant or equipment.

Non-equity:

The alliance will only deal with the licensing, supply or distribution agreements between the two firms.

Joint venture:

The company that is created by two or more parent firms together is known as a joint venture.

Expert Solution & Answer

Explanation of Solution

Non-Equity:

Benefits:

It is flexible and fast.
It is easy to begin or terminate.

Downsides:

The alliance is weak.
There will be a lack of trust and commitment.

Equity:

Benefits:

The tie is stronger.
It has more trust and commitment.
It can look into new technologies.

Downsides:

It has less flexibility.
It is slower.
It can entail significant investments.

Joint venture:

Benefits:

It is the strongest alliance.
It has more trust and commitment.
It will require an institutional setting.

Downsides:

It can entail longer investments and negotiations.
The managers have to follow double reporting lines.

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Answer 5

Chapter 9, Problem 1DQ

Summary Introduction

To explain: The benefits and downsides of each mechanism.

Introduction:

Equity:

The alliance where there will be a purchase of equipment in the partner firm, or stake, or investment in the plant or equipment.

Non-equity:

The alliance will only deal with the licensing, supply or distribution agreements between the two firms.

Joint venture:

The company that is created by two or more parent firms together is known as a joint venture.

Expert Solution & Answer

Explanation of Solution

Non-Equity:

Benefits:

It is flexible and fast.
It is easy to begin or terminate.

Downsides:

The alliance is weak.
There will be a lack of trust and commitment.

Equity:

Benefits:

The tie is stronger.
It has more trust and commitment.
It can look into new technologies.

Downsides:

It has less flexibility.
It is slower.
It can entail significant investments.

Joint venture:

Benefits:

It is the strongest alliance.
It has more trust and commitment.
It will require an institutional setting.

Downsides:

It can entail longer investments and negotiations.
The managers have to follow double reporting lines.

Answer 6

Chapter 9, Problem 1DQ

Summary Introduction

To explain: The benefits and downsides of each mechanism.

Introduction:

Equity:

The alliance where there will be a purchase of equipment in the partner firm, or stake, or investment in the plant or equipment.

Non-equity:

The alliance will only deal with the licensing, supply or distribution agreements between the two firms.

Joint venture:

The company that is created by two or more parent firms together is known as a joint venture.

Expert Solution & Answer

Explanation of Solution

Non-Equity:

Benefits:

It is flexible and fast.
It is easy to begin or terminate.

Downsides:

The alliance is weak.
There will be a lack of trust and commitment.

Equity:

Benefits:

The tie is stronger.
It has more trust and commitment.
It can look into new technologies.

Downsides:

It has less flexibility.
It is slower.
It can entail significant investments.

Joint venture:

Benefits:

It is the strongest alliance.
It has more trust and commitment.
It will require an institutional setting.

Downsides:

It can entail longer investments and negotiations.
The managers have to follow double reporting lines.

Answer 7

Chapter 9, Problem 1DQ

Summary Introduction

To explain: The benefits and downsides of each mechanism.

Introduction:

Equity:

The alliance where there will be a purchase of equipment in the partner firm, or stake, or investment in the plant or equipment.

Non-equity:

The alliance will only deal with the licensing, supply or distribution agreements between the two firms.

Joint venture:

The company that is created by two or more parent firms together is known as a joint venture.

Answer 8

Expert Solution & Answer

Explanation of Solution

Non-Equity:

Benefits:

It is flexible and fast.
It is easy to begin or terminate.

Downsides:

The alliance is weak.
There will be a lack of trust and commitment.

Equity:

Benefits:

The tie is stronger.
It has more trust and commitment.
It can look into new technologies.

Downsides:

It has less flexibility.
It is slower.
It can entail significant investments.

Joint venture:

Benefits:

It is the strongest alliance.
It has more trust and commitment.
It will require an institutional setting.

Downsides:

It can entail longer investments and negotiations.
The managers have to follow double reporting lines.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 9.3 - Prob. 1CC Ch. 9.3 - Prob. 2CC Ch. 9.3 - Prob. 3CC Ch. 9.3 - Prob. 4CC Ch. 9 - Prob. 1DQ Ch. 9 - Prob. 2DQ Ch. 9 - Prob. 3DQ Ch. 9 - Prob. 1ESI Ch. 9 - Prob. 2ESI Ch. 9 - Prob. 1MS

Explanation of Solution

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Chapter 9 Solutions