Exam 18: Global Opportunities for Small Business

When an entrepreneur joins an organized trip designed to introduce the company to interested international customers or potential strategic alliance partners, he/she has participated in a

Startups that are based on complex technologies are more likely to gain benefits from learning effects and economies of scale.

When a small firm is launched with cross-border activities in mind, some would say the business

If a small business sets up a design studio in Milan, Italy to create its line of specialty apparel, it is going global to

Lee Marine's attempt to extend the product life cycle of older models of its boats by selling them in international markets has not been effective strategy, in part, because

Perhaps the greatest barrier to international expansion is

More than 75 percent of the world's population lives outside of the United States.

Exporting involves the purchase of goods in the home country made by manufacturers in other countries.

Fortunately, small international businesses do not face trivial problems, such as content restrictions in television advertising, which allows these firms to focus their resources on greater risks, such as the government takeover of the firm's private assets.

Taken together, China and India account for nearly 30 percent of the world's 4 billion inhabitants.

Please list and explain the advantages and disadvantages of International licensing.

Increasingly, small firms are going global in search of skilled labor.

John Berryhill is interested in joining with a large corporation in a cooperative venture to share risks and pool resources for his small auto parts manufacturing business, so the strategy option he is exploring could best be described as

When a business locates a production facility or sales office overseas by purchasing a foreign business from another firm, this is referred to as a _____.

Globalization is the term used to explain the increasing similarity of markets around the world.

Long production runs at Bayshore Industries have steadily reduced its unit costs, indicating that it has benefited from

When it comes to cutting costs, an emerging motivation for going global is to

Most small firms choose to go global first by exporting.

Learning effects occur when

You Make the Call-Situation 3 Dr. Juldiz Afgazar, a native of the Republic of Kazakhstan, had been invited to spend a semester in the United States as a visiting scholar in entrepreneurial finance. Kazakhstan gained its independence from the former Soviet Union in 1991, and only after that were laws passed allowing citizens to own private businesses. Dr. Afgazar wanted to learn more about the free market economy of the United States to determine whether such a system could be implemented in Kazakhstan. Prior to this visit to the United States, Dr. Afgazar had not traveled extensively outside her country. Although she enjoyed many aspects of U.S. culture, she was particularly impressed by the seemingly unlimited quantity and variety of goods and foods that were readily available. After a visit to a local restaurant's pizza buffet, she became an avid fan of American-style pizza! Dr. Afgazar found the crisp yeast crust, spicy tomato sauce, melted mozzarella cheese, and assortment of toppings to be a delicious combination. Pizza was an entirely new type of food for her, since it was not available in Kazakhstan. A true entrepreneur, Dr. Afgazar began to wonder if a pizza restaurant could be successful in her country. (Source: Developed by Elisabeth J. Teal of Northern Georgia College and State University, Dahlonega, Georgia, and Aigul N. Toxanova of Kokshetau Higher College of Management and Business, Kazakhstan.)