Question 1

Allen is considering entering the global marketplace.What question should be answered first?

Accepted Answer

A) Does the company have the necessary "deep pockets" to follow through? 
B) Are the company's domestic operations capable of subsidising overseas operations? 
C) Is the company's technology sufficient to enter into the international game? 
D) Is the company up to the task? 
A) Does the company have the necessary "deep pockets" to follow through? 
B) Are the company's domestic operations capable of subsidising overseas operations? 
C) Is the company's technology sufficient to enter into the international game? 
D) Is the company up to the task?

Question 2

An example of a trade intermediary most suited for small businesses is an export remarketer.

Accepted Answer

A) True 
 B)False

Question 3

Experience curve efficiencies refer to the savings that arise from repeated production of the same product.

Accepted Answer

A) True 
 B)False

Question 4

Importing involves:

Accepted Answer

A) the authorised use of intellectual property. 
B) selling products from abroad in the business's home market. 
C) purchasing the right to manufacture and sell a business's product in overseas markets. 
D) the sale of products produced in the home country to customers in another country. 
A) the authorised use of intellectual property. 
B) selling products from abroad in the business's home market. 
C) purchasing the right to manufacture and sell a business's product in overseas markets. 
D) the sale of products produced in the home country to customers in another country.

Question 5

China, India and Russia are classified as moderately challenging according to the World Bank's Ease of Doing Business Index.

Accepted Answer

A) True 
 B)False

Question 6

When Wayne opened his business many years ago, most businesses operated only within one country.But now thanks to __________, businesses increasingly take advantage of cross-border activities.

Accepted Answer

A) born-global businesses 
B) globalisation 
C) economic freedom 
D) economic liberty 
A) born-global businesses 
B) globalisation 
C) economic freedom 
D) economic liberty

Question 7

Match the term with its definition.Some terms may not be used
a.Born-global businesses
b.Cross-border acquisition
c.Exporting
d.Globalisation
e.Greenfield venture
f.Importing
g.Offshoring
h.Trade intermediary
i.Trade mission
-Selling products produced in another country to buyers in the home country.

Accepted Answer

The answer of Match the term with its definition.Some terms...

Question 8

International business will never be as easy as doing business on the domestic front.

Accepted Answer

A) True 
 B)False

Question 9

Entrepreneurs decide to go global to expand their opportunities, but sometimes they are forced to enter foreign markets to compete with businesses that have already done so.

Accepted Answer

A) True 
 B)False

Question 10

When it comes to cutting costs, many foreign companies have chosen to locate production facilities in Mexico to:

Accepted Answer

A) obtain tariff reductions. 
B) find raw materials. 
C) follow large client businesses that locate abroad. 
D) find suppliers offering highly specialised products. 
A) obtain tariff reductions. 
B) find raw materials. 
C) follow large client businesses that locate abroad. 
D) find suppliers offering highly specialised products.

Question 11

A company with the most experienced production employees and the lowest unit costs in its industry indicates that it had benefited from:

Accepted Answer

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

Question 12

Labour rates have risen over time to the point that Sipho's Chakalaka is considering ____________ to reduce costs.

Accepted Answer

A) outsourcing. 
B) offshoring. 
C) exporting. 
D) importing. 
A) outsourcing. 
B) offshoring. 
C) exporting. 
D) importing.

Question 13

International markets are increasingly demanding:

Accepted Answer

A) the same products that are distributed to other national markets. 
B) differentiated products that satisfy their unique needs and interests. 
C) direct access to products sold elsewhere in the world. 
D) more expensive products and fewer inexpensive products. 
A) the same products that are distributed to other national markets. 
B) differentiated products that satisfy their unique needs and interests. 
C) direct access to products sold elsewhere in the world. 
D) more expensive products and fewer inexpensive products.

Question 14

Increasingly, small businesses are expanding internationally to:

Accepted Answer

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

Question 15

Perhaps the easiest way to break into international markets is to use a trade intermediary.

Accepted Answer

A) True 
 B)False

Question 16

An intermediary that works for foreign businesses that are interested in buying South African products and is paid a commission for its services is called a(n) _____.

Accepted Answer

A) export agent. 
B) export trading company. 
C) piggyback marketer. 
D) confirming house. 
A) export agent. 
B) export trading company. 
C) piggyback marketer. 
D) confirming house.

Question 17

Nkoana is a young entrepreneur with grand plans, including international expansion of his new company.Once that decision is made, Nkoana's next step is to:

Accepted Answer

A) begin to hire employees with international experience. 
B) join a trade mission. 
C) plan a strategy that increases the potential of the business. 
D) spend some time estimating the market potential of various countries. 
A) begin to hire employees with international experience. 
B) join a trade mission. 
C) plan a strategy that increases the potential of the business. 
D) spend some time estimating the market potential of various countries.

Question 18

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 value of one country's currency relative to that of another country.

Accepted Answer

The answer of Match the term with its definition.Some terms...

Question 19

Which country would be the least challenging in its ease of doing business according to the World Bank's index?

Accepted Answer

A) Argentina 
B) Egypt 
C) Chile 
D) Madagascar 
A) Argentina 
B) Egypt 
C) Chile 
D) Madagascar

Question 20

The unique features of a local environment can yield benefits to small businesses locating there even when the costs are greater.

Accepted Answer

A) True 
 B)False

Exam 18: Global Opportunities for Small Business

Allen is considering entering the global marketplace.What question should be answered first?

An example of a trade intermediary most suited for small businesses is an export remarketer.

Experience curve efficiencies refer to the savings that arise from repeated production of the same product.

Importing involves:

China, India and Russia are classified as moderately challenging according to the World Bank's Ease of Doing Business Index.

When Wayne opened his business many years ago, most businesses operated only within one country.But now thanks to __________, businesses increasingly take advantage of cross-border activities.

International business will never be as easy as doing business on the domestic front.

Entrepreneurs decide to go global to expand their opportunities, but sometimes they are forced to enter foreign markets to compete with businesses that have already done so.

When it comes to cutting costs, many foreign companies have chosen to locate production facilities in Mexico to:

A company with the most experienced production employees and the lowest unit costs in its industry indicates that it had benefited from:

Labour rates have risen over time to the point that Sipho's Chakalaka is considering ____________ to reduce costs.

International markets are increasingly demanding:

Increasingly, small businesses are expanding internationally to:

Perhaps the easiest way to break into international markets is to use a trade intermediary.

An intermediary that works for foreign businesses that are interested in buying South African products and is paid a commission for its services is called a(n) _____.

Nkoana is a young entrepreneur with grand plans, including international expansion of his new company.Once that decision is made, Nkoana's next step is to:

Which country would be the least challenging in its ease of doing business according to the World Bank's index?

The unique features of a local environment can yield benefits to small businesses locating there even when the costs are greater.

The Entrepreneurial Life

Integrity, Ethics And, Social Entrepreneurship

Starting a Small Business

Franchising and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Organizational Plan: Teams, Legal Structures, Alliances, 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 and the Small Business

Managing Human Resources

Managing Operations

Managing the Firms Assets

Managing Risk in the Small Business

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