Question 1

NAFTA includes provisions reducing tariff and non-tariff barriers and toughening health and safety standards.

Accepted Answer

A) True 
 B)False  True

Question 2

Foreign licensing has its greatest potential in the licensing of:

Accepted Answer

A) products. 
B) intangibles. 
C) goods. 
D) franchises. 
A) products. 
B) intangibles. 
C) goods. 
D) franchises. B

Question 3

A(n)________ is a business that buys and sells products in a number of countries,offering a range of services-importing,exporting,shipping,distributing,and others-to their clients.

Accepted Answer

A) foreign joint venture 
B) export trading company 
C) foreign licensee 
D) resident buying office 
A) foreign joint venture 
B) export trading company 
C) foreign licensee 
D) resident buying office B

Question 4

Issues to be addressed before entering into a joint venture include:

Accepted Answer

A) What contributions will each party make? 
B) Who will be responsible for making which decisions? 
C) Under what circumstances can the parties terminate the relationship? 
D) All of the above 
A) What contributions will each party make? 
B) Who will be responsible for making which decisions? 
C) Under what circumstances can the parties terminate the relationship? 
D) All of the above

Question 5

Sometimes,once established in international markets,businesses ________,despite the frustrations of securing services,the significant capital investment involved,etc.

Accepted Answer

A) offer foreign licenses 
B) sell international franchises 
C) establish an international location 
D) use trade intermediaries 
A) offer foreign licenses 
B) sell international franchises 
C) establish an international location 
D) use trade intermediaries

Question 6

Key to successfully establishing an international location is:

Accepted Answer

A) securing the necessary licenses to operate in the foreign country. 
B) finding the right person to manage the international office. 
C) making a substantial investment in personnel. 
D) being able to speak the language of the foreign country. 
A) securing the necessary licenses to operate in the foreign country. 
B) finding the right person to manage the international office. 
C) making a substantial investment in personnel. 
D) being able to speak the language of the foreign country.

Question 7

The U.S.Commerce Department,the SBA,and the Trade Administration provide a number of services.TOP-the trade opportunity program-is one and through it entrepreneurs can:

Accepted Answer

A) receive up-to-the minute pre-screened sales leads,including joint venture possibilities. 
B) establish business relationships in major markets by helping them make networking contacts. 
C) gain access to contact and product information for more than 82,000 foreign distributors. 
D) place advertisements that will reach thousands of foreign customers. 
A) receive up-to-the minute pre-screened sales leads,including joint venture possibilities. 
B) establish business relationships in major markets by helping them make networking contacts. 
C) gain access to contact and product information for more than 82,000 foreign distributors. 
D) place advertisements that will reach thousands of foreign customers.

Question 8

What questions should an entrepreneur ask before venturing into the global marketplace?

Accepted Answer

The six questions are:
• Is there a prof

Question 9

Going up against some of the toughest competition in the world forces a company to hone its competitive skills.

Accepted Answer

A) True 
 B)False

Question 10

Malcolm won a contract to provide nuts,bolts,and washers to a small African country's military.Unfortunately,neither his bankers nor venture capitalists would provide the loans needed to buy the material to produce the order.The bank didn't do international loans.Which barrier to international trade is Malcolm experiencing?

Accepted Answer

A) Information 
B) Cultural 
C) Financing 
D) Attitude 
A) Information 
B) Cultural 
C) Financing 
D) Attitude

Question 11

Going global can lower manufacturing costs.

Accepted Answer

A) True 
 B)False

Question 12

A(n)________ is a government- or privately-owned company established in a foreign country for the purpose of buying goods made there.

Accepted Answer

A) export trading company 
B) resident buying office 
C) foreign distributor 
D) export merchants 
A) export trading company 
B) resident buying office 
C) foreign distributor 
D) export merchants

Question 13

The goal of countertrading is to help offset the capital drain from the foreign country's purchases.

Accepted Answer

A) True 
 B)False

Question 14

A letter of credit is a document the seller draws on the buyer,requiring the buyer to pay the face amount (the purchase price of the goods)either on sight (a sight draft)or on a specified date (a time draft)once the goods are shipped.

Accepted Answer

A) True 
 B)False

Question 15

The most important ingredient in the recipe for a successful joint venture is:

Accepted Answer

A) choosing the right country or region. 
B) generating sufficient capital to pursue the venture. 
C) choosing the right partner. 
D) hiring efficient employees to carry out the venture. 
A) choosing the right country or region. 
B) generating sufficient capital to pursue the venture. 
C) choosing the right partner. 
D) hiring efficient employees to carry out the venture.

Question 16

The key to successfully establishing an international location is properly screening for the right partner company with compatible goals and products/services.

Accepted Answer

A) True 
 B)False

Question 17

________ is said to link trading partners,whether they are giant corporations or single individuals with a small business.

Accepted Answer

A) Technology 
B) Better management 
C) Higher salaries 
D) Smaller organizations 
A) Technology 
B) Better management 
C) Higher salaries 
D) Smaller organizations

Question 18

________ is/are one of the trading intermediaries a small company can use to enter the global marketplace.

Accepted Answer

A) Export merchants 
B) Joint ventures 
C) International franchising 
D) Establishing international locations 
A) Export merchants 
B) Joint ventures 
C) International franchising 
D) Establishing international locations

Question 19

Expanding a small business into international markets:

Accepted Answer

A) guarantees its success in the marketplace. 
B) makes it a member of GATT automatically. 
C) often helps it to grow faster and better survive competition. 
D) leads to business failure for companies under $100 million in annual revenue. 
A) guarantees its success in the marketplace. 
B) makes it a member of GATT automatically. 
C) often helps it to grow faster and better survive competition. 
D) leads to business failure for companies under $100 million in annual revenue.

Question 20

Going global is risk-free

Accepted Answer

A) True 
 B)False

Exam 12: Global Marketing Strategies

NAFTA includes provisions reducing tariff and non-tariff barriers and toughening health and safety standards.

Foreign licensing has its greatest potential in the licensing of:

A(n)________ is a business that buys and sells products in a number of countries,offering a range of services-importing,exporting,shipping,distributing,and others-to their clients.

Issues to be addressed before entering into a joint venture include:

Sometimes,once established in international markets,businesses ________,despite the frustrations of securing services,the significant capital investment involved,etc.

Key to successfully establishing an international location is:

The U.S.Commerce Department,the SBA,and the Trade Administration provide a number of services.TOP-the trade opportunity program-is one and through it entrepreneurs can:

What questions should an entrepreneur ask before venturing into the global marketplace?

Going up against some of the toughest competition in the world forces a company to hone its competitive skills.

Going global can lower manufacturing costs.

A(n)________ is a government- or privately-owned company established in a foreign country for the purpose of buying goods made there.

The goal of countertrading is to help offset the capital drain from the foreign country's purchases.

A letter of credit is a document the seller draws on the buyer,requiring the buyer to pay the face amount (the purchase price of the goods)either on sight (a sight draft)or on a specified date (a time draft)once the goods are shipped.

The most important ingredient in the recipe for a successful joint venture is:

The key to successfully establishing an international location is properly screening for the right partner company with compatible goals and products/services.

________ is said to link trading partners,whether they are giant corporations or single individuals with a small business.

________ is/are one of the trading intermediaries a small company can use to enter the global marketplace.

Expanding a small business into international markets:

Going global is risk-free

Entrepreneurs: the Driving Force Behind Small Business

Strategic Management and the Entrepreneur

Choosing a Form of Ownership

Franchising and the Entrepreneur

Buying an Existing Business

Conducting a Feasibility Analysis and Crafting a Winning Business Plan

Creating a Solid Financial Plan

Managing Cash Flow

Building a Guerrilla Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

E-Commerce and Entrepreneurship

Sources of Equity Financing

Sources of Debt Financing

Location,layout,and Physical Facilities

Supply Chain Management

Managing Inventory

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

Ethics and Social Responsibility: Doing the Right Thing

The Legal Environment: Business Law and Government Regulation

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