Question 1

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

Accepted Answer

A)  television programs 
B)  billboards 
C)  movies 
D)  print media

Question 2

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

Accepted Answer

A)  piggyback marketer 
B)  remarketer 
C)  export agent 
D)  export trading company

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

International franchising is a variation on the theme of

Accepted Answer

A)  exporting. 
B)  importing. 
C)  foreign licensing. 
D)  international strategic alliances.

Question 6

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.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

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

Question 8

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.

Accepted Answer

A) True 
 B)False

Question 9

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.

Accepted Answer

A) True 
 B)False

Question 10

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.

Accepted Answer

The answer of Describe the role trade intermediaries play in...

Question 11

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

Accepted Answer

A)  exchange rate risk. 
B)  economic risk. 
C)  societal risk. 
D)  political risk.

Question 12

What is political risk?

Accepted Answer

The answer of What is political risk?...

Question 13

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.

Accepted Answer

The answer of You Make the Call-Situation 2
Lynn Cooper owns...

Question 14

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.

Accepted Answer

A) True 
 B)False

Question 15

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.

Accepted Answer

A) True 
 B)False

Question 16

eBay makes selling your products around the world easy.

Accepted Answer

A) True 
 B)False

Question 17

It is becoming clear that international markets are 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.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)  duplicate government regulatory systems. 
B)  reduce tariffs to increase trade. 
C)  coordinate the currencies of included countries. 
D)  accommodate the demands of organized labor.

Question 20

International outsourcing refers to

Accepted Answer

A)  relocating stateside operations abroad. 
B)  obtaining raw materials in foreign countries. 
C)  sending US employees to manage foreign-based operations. 
D)  accessing foreign labor through contracts with independent providers.

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.

What is political risk?

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