Sony Chapter 9

Chapter 9 Global Market Entry Strategies Licensing, Investment, and Strategic Alliances 1) Companies like Bill Blass, Hugo Boss, and other global design icons typically generate more revenue from licensing deals for jeans, fragrances, and watches than from their high-priced couture lines. Answer TRUE Diff 2 Page Ref 265-267 AACSB Reflective Thinking 2) Licensing is a contractual agreement whereby one company (the licensor) makes a legally protected asset available to another company (the licensee) in exchange for royalties, license fees, or some other form of compensation. Answer TRUE Diff 1 Page Ref 265 3) Licensing enables companies to circumvent tariffs, quotas, or similar export barriers. Answer TRUE Diff 2 Page Ref 266 AACSB Reflective Thinking 4) Licensing agreements offer unlimited market control. Answer FALSE Diff 2 Page Ref 266 AACSB
Answer TRUE Diff 2 Page Ref 267 AACSB Reflective Thinking 7) Sony was the first company to manufacture and market a transistor radio. Answer FALSE Diff 2 Page Ref 267 AACSB Reflective Thinking 8) Sonys worldwide success in manufacturing and marketing transistor radios in the 1950s stemmed from its joint venture arrangement with an American corporation. Answer TRUE Diff 1 Page Ref 267 9) One of the cornerstones of Apple Computers business strategy has been licensing its famed operating system. Answer TRUE Diff 2 Page Ref 267 AACSB Reflective Thinking 10) Starbucks relentless pursuit of new market opportunities in Germany and other countries illustrates the fact that most firms face a limited range of strategy alternatives. Answer FALSE Diff 1 Page Ref 265 AACSB Reflective Thinking 11) A company that emphasizes direct investment as a market entry strategy is subject to a higher degree of political risk than a company that relies heavily on