Exam 18: Global Opportunities for Small Business

A Gabonese grocery store chain with its corporate headquarters in Libreville has approached Sipho, the owner of a company that produces chakalaka, about exporting its sauces into Gabon.Which question would need to be answered in relation to the company's production capacity objectives?

If Sipho accepts the offer of the Gabonese grocery chain to sell his South African-made chakalaka in Gabon, he will be:

Match the term with its definition.Some terms may not be used a.Bill of lading b.Born-global businesses c.Counterfeit activity d.Economic risk e.Economies of scale f.Exchange rate g.Letter of credit h.Offshoring i.Political risk j.Royalties -The probability that a country's government will mismanage its economy in ways that hinder the performance of businesses operating there.

Once a small business owner decides to expand internationally, s/he should study the competitive forces in the foreign market.

International outsourcing and offshoring are increasingly being used by companies going global to cut costs.

Least challenging countries according to the World Bank's Ease of Doing Business Index include Canada, Mexico and Chile.

A small business can generate the greatest financial returns using international licencing strategies when these efforts involve the company's products.

Products that sell at home usually require little or no adaptation to be well received in foreign markets.

In the recent past, companies have left South Africa to:

Coca-Cola leased land and built a bottling operation in Turkey.This new facility is best described as:

If an olive oil importer sets up operations in Italy to be near its supplier, the company is going global by:

For most small businesses, the primary motivation for going global is to:

Sipho's small chakalaka business is considering exporting.A Gabonese grocery store chain with its corporate headquarters in Libreville has approached him.Which question would need to be answered in relation to the chakalaka company's management experience and resource objectives?

10 per cent of the world's population lives in South Africa.

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

The primary motivation for expansion into European markets is to be closer to sources of raw materials.

As Sipho's chakalaka company increases in size, the business is able to realise economies of scale:

The SA Chamber of Commerce and Industry provides information for entrepreneurs considering global operations.

Match the term with its definition.Some terms may not be used a.Economic risk b.Experience curve efficiencies c.Foreign licensing d.International franchising e.International outsourcing f.International strategic alliance g.Learning effects h.Licensee i.Licensor -Per-unit savings gained from repeated production of the same product.

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.