Exam 18: Global Opportunities for Small Business

The major factors that have shaped cultural tastes throughout the world, easing the entry of small businesses into international markets are all of the following except

Manufacturers or service firms that distribute a second firm's product or service is called a _____.

Trade missions can provide a useful means for a firm to explore the potential for international business.

Efforts to exploit the competitive advantage of specialized products across international markets may be more important to small businesses than to their large competitors.

International franchising is a variation on the theme of

The U.S. Department of Commerce publishes A Guide to Exporting, which outlines some of the important questions entrepreneurs should consider when deciding whether a firm is ready for the challenges of global business.

Crumpton Industries reduced its unit costs when it expanded its productive capacity, indicating that it has benefited from

Small businesses have many options when they choose to go global, but it is not a good idea for such firms to establish a sales or production facility abroad because of the resources this requires.

International firms often have to deal with the problem of counterfeit goods, but foreign licensing can help to shield the small business from this threat.

Describe the role trade intermediaries play in assisting small businesses that choose to go global. Identify the types of trade intermediaries that are most useful to small businesses.

From a company-owned plant in Pakistan, Howard Eden manufactures specialty apparel items for his small business, Garments of Eden. Because of overseas operations of the U.S. military in the region, Eden fears that his plant may be sabotaged or that the local government may attempt to take over the facility. Specifically, his fears are about

What is political risk?

You Make the Call-Situation 2 Lynn Cooper owns and operates BFW, Inc., in Lexington, Kentucky, where she produces fiber-optic lights and headgear-mounted video cameras used for medical exams and surgery. She sees exporting as a means of increasing sales, but with just one employee, she wonders how best to handle the additional marketing and distribution exporting would require.

Small firms can successfully open an overseas sales office, but this should only be done when sales in the local market are great enough to justify this expensive move.

It is clear that a small firm can generate the greatest financial returns using international licensing strategies when these efforts involve the company's products.

eBay makes selling your products around the world easy.

It is becoming clear that international markets are demanding

Today, companies tend to focus on developed countries as they search out international markets.

The intent of the North American Free Trade Agreement (NAFTA) was to

International outsourcing refers to