Question 1

Products that sell at home usually require considerable adaptation to be well received in foreign markets.

Accepted Answer

A) True 
 B)False

Question 2

Born-global firms are small companies that begin with cross-border businesses around the globe.

Accepted Answer

A) True 
 B)False

Question 3

Recent research has shown that globalizing early in a company's life tends to lead to

Accepted Answer

A)  lower levels of firm risk. 
B)  a boost to the firm's reputation. 
C)  increased sales growth. 
D)  financial disaster. 
A)  lower levels of firm risk. 
B)  a boost to the firm's reputation. 
C)  increased sales growth. 
D)  financial disaster.

Question 4

Economic risk refers to the

Accepted Answer

A)  risk that a startup will not generate the performance necessary to stay in business long term. 
B)  potential for loss of capital in a business deal. 
C)  probability that a government will change business conditions and hinder firm performance. 
D)  chance that an entrepreneur will not be financially successful. 
A)  risk that a startup will not generate the performance necessary to stay in business long term. 
B)  potential for loss of capital in a business deal. 
C)  probability that a government will change business conditions and hinder firm performance. 
D)  chance that an entrepreneur will not be financially successful.

Question 5

The unique features of a local environment can yield benefits to small firms locating there.

Accepted Answer

A) True 
 B)False

Question 6

Importing can be described as the

Accepted Answer

A)  "flip side" of exporting. 
B)  sale of products produced in the home country to customers in another country. 
C)  purchase of the right to manufacture and sell a firm's product in overseas markets. 
D)  authorized use of intellectual property. 
A)  "flip side" of exporting. 
B)  sale of products produced in the home country to customers in another country. 
C)  purchase of the right to manufacture and sell a firm's product in overseas markets. 
D)  authorized use of intellectual property.

Question 7

Identify the four primary motivations that encourage entrepreneurs to go global and provide an example of a traditional motivation and an emerging motivation for each.

Accepted Answer

The answer of Identify the four primary motivations that encourage...

Question 8

Most small firms choose to outsource internationally in order to

Accepted Answer

A)  avoid domestic taxes. 
B)  avoid competition from other US companies. 
C)  cut costs and access talented foreign employees. 
D)  take advantage of legal loop-holes in foreign countries. 
A)  avoid domestic taxes. 
B)  avoid competition from other US companies. 
C)  cut costs and access talented foreign employees. 
D)  take advantage of legal loop-holes in foreign countries.

Question 9

Newplant has the most experienced production employees and the lowest unit costs in its industry, indicating that it had benefited from

Accepted Answer

A)  experience curve efficiencies. 
B)  learning effects. 
C)  economies of scale. 
D)  economies of scope. 
A)  experience curve efficiencies. 
B)  learning effects. 
C)  economies of scale. 
D)  economies of scope.

Question 10

Forming from scratch a wholly-owned subsidiary in another country can be most accurately described as

Accepted Answer

A)  a greenfield venture. 
B)  a cross-border acquisition. 
C)  an international transplant. 
D)  a duplication strategy. 
A)  a greenfield venture. 
B)  a cross-border acquisition. 
C)  an international transplant. 
D)  a duplication strategy.

Question 11

Increasingly, small businesses are expanding internationally to

Accepted Answer

A)  obtain raw materials. 
B)  gain access to skilled labor. 
C)  create job opportunities for domestic employees. 
D)  take advantage of government incentives. 
A)  obtain raw materials. 
B)  gain access to skilled labor. 
C)  create job opportunities for domestic employees. 
D)  take advantage of government incentives.

Question 12

International dissimilarities in language and culture, business practices, and government regulations are fading over time.

Accepted Answer

A) True 
 B)False

Question 13

When it comes to gaining access to resources, a traditional motivation for going global has been to

Accepted Answer

A)  take advantage of unique features of the local market. 
B)  find raw materials. 
C)  change the shape of the product life cycle. 
D)  serve the local community through the business. 
A)  take advantage of unique features of the local market. 
B)  find raw materials. 
C)  change the shape of the product life cycle. 
D)  serve the local community through the business.

Question 14

Seeking to extend the product life cycle by expanding into international markets has become a less effective strategy, in part, because

Accepted Answer

A)  customer preferences have become more similar around the world. 
B)  international delivery systems cannot handle the variety of company distribution systems. 
C)  income levels in many countries are insufficient to support this strategy. 
D)  product life cycles have already been growing over the years. 
A)  customer preferences have become more similar around the world. 
B)  international delivery systems cannot handle the variety of company distribution systems. 
C)  income levels in many countries are insufficient to support this strategy. 
D)  product life cycles have already been growing over the years.

Question 15

Crossborder Manufacturing USA has developed a new and wholly-owned subsidiary in another country that is most accurately described as

Accepted Answer

A)  a greenfield venture. 
B)  a cross-border acquisition. 
C)  an international transplant. 
D)  a duplication strategy. 
A)  a greenfield venture. 
B)  a cross-border acquisition. 
C)  an international transplant. 
D)  a duplication strategy.

Question 16

Once a product has been shipped internationally and the title has been transferred, the exporter receives what is called a

Accepted Answer

A)  international invoice. 
B)  bill of lading. 
C)  letter of confirmation. 
D)  letter of credit. 
A)  international invoice. 
B)  bill of lading. 
C)  letter of confirmation. 
D)  letter of credit.

Question 17

How should a small business go about analyzing international markets and planning a strategy to enter targeted markets? Identify specific sources of information in your answer.

Accepted Answer

First, a small business should begin its

Question 18

Increasingly, small firms find that they must locate their operations abroad if they are to keep their contracts as suppliers to large companies.

Accepted Answer

A) True 
 B)False

Question 19

Economies of scale refers to

Accepted Answer

A)  learning effects from manufacturing experience. 
B)  the incremental drop in costs that results from the doubling of output. 
C)  efficiencies that are most common in low-tech operations. 
D)  gains from the spreading of investment across more units of production. 
A)  learning effects from manufacturing experience. 
B)  the incremental drop in costs that results from the doubling of output. 
C)  efficiencies that are most common in low-tech operations. 
D)  gains from the spreading of investment across more units of production.

Question 20

International franchising is essentially an alternative form of exporting.

Accepted Answer

A) True 
 B)False

Exam 18: Global Opportunities for Small Business

Products that sell at home usually require considerable adaptation to be well received in foreign markets.

Born-global firms are small companies that begin with cross-border businesses around the globe.

Recent research has shown that globalizing early in a company's life tends to lead to

Economic risk refers to the

The unique features of a local environment can yield benefits to small firms locating there.

Importing can be described as the

Identify the four primary motivations that encourage entrepreneurs to go global and provide an example of a traditional motivation and an emerging motivation for each.

Most small firms choose to outsource internationally in order to

Newplant has the most experienced production employees and the lowest unit costs in its industry, indicating that it had benefited from

Forming from scratch a wholly-owned subsidiary in another country can be most accurately described as

Increasingly, small businesses are expanding internationally to

International dissimilarities in language and culture, business practices, and government regulations are fading over time.

When it comes to gaining access to resources, a traditional motivation for going global has been to

Seeking to extend the product life cycle by expanding into international markets has become a less effective strategy, in part, because

Crossborder Manufacturing USA has developed a new and wholly-owned subsidiary in another country that is most accurately described as

Once a product has been shipped internationally and the title has been transferred, the exporter receives what is called a

How should a small business go about analyzing international markets and planning a strategy to enter targeted markets? Identify specific sources of information in your answer.

Increasingly, small firms find that they must locate their operations abroad if they are to keep their contracts as suppliers to large companies.

Economies of scale refers to

International franchising is essentially an alternative form of exporting.

The Entrepreneurial Life

Entrepreneurial Integrity and Ethics

Getting Started

Franchises and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Human Resources Plan: Managers, Owners, Allies, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Professional Management in the Entrepreneurial Firm

Managing Human Resources

Managing Operations

Managing the Firms Assets

Managing Risk in the Small Business

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