Question 1

Importing can be described as the

Accepted Answer

A)   "flip side" of exporting.
B)   sale of products produced in the home country to customers in another country.
C)   purchase of the right to manufacture and sell a firm's product in overseas markets.
D)   authorized use of intellectual property.E) B) and C)
F) A) and D)

Question 2

Increasingly, small businesses are expanding internationally to

Accepted Answer

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

Question 3

Economic risk refers to the

Accepted Answer

A)   risk that a startup will not generate the performance necessary to stay in business long term.
B)   potential for loss of capital in a business deal.
C)   probability that a government will change business conditions and hinder firm performance.
D)   chance that an entrepreneur will not be financially successful.E) None of the above
F) All of the above

Question 4

Born-global firms are small companies that begin with cross-border businesses around the globe.

Accepted Answer

A) True 
 B)False

Question 5

Seeking to extend the product life cycle by expanding into international markets has become a less effective strategy, in part, because

Accepted Answer

A)   customer preferences have become more similar around the world.
B)   international delivery systems cannot handle the variety of company distribution systems.
C)   income levels in many countries are insufficient to support this strategy.
D)   product life cycles have already been growing over the years.E) A) and B)
F) A) and C)

Question 6

When it comes to gaining access to resources, a traditional motivation for going global has been to

Accepted Answer

A)   take advantage of unique features of the local market.
B)   find raw materials.
C)   change the shape of the product life cycle.
D)   serve the local community through the business.E) B) and C)
F) A) and D)

Question 7

Crossborder Manufacturing USA has developed a new and wholly-owned subsidiary in another country that is most accurately described as

Accepted Answer

A)   a greenfield venture.
B)   a cross-border acquisition.
C)   an international transplant.
D)   a duplication strategy.E) A) and B)
F) A) and C)

Question 8

Forming from scratch a wholly-owned subsidiary in another country can be most accurately described as

Accepted Answer

A)   a greenfield venture.
B)   a cross-border acquisition.
C)   an international transplant.
D)   a duplication strategy.E) A) and B)
F) A) and D)

Question 9

Newplant has the most experienced production employees and the lowest unit costs in its industry, indicating that it had benefited from

Accepted Answer

A)   experience curve efficiencies.
B)   learning effects.
C)   economies of scale.
D)   economies of scope.E) None of the above
F) A) and D)

Question 10

Identify the four primary motivations that encourage entrepreneurs to go global and provide an example of a traditional motivation and an emerging motivation for each.

Accepted Answer

The answer of Identify the four primary motivations that encourage...

Question 11

The unique features of a local environment can yield benefits to small firms locating there.

Accepted Answer

A) True 
 B)False

Question 12

International dissimilarities in language and culture, business practices, and government regulations are fading over time.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)   international invoice.
B)   bill of lading.
C)   letter of confirmation.
D)   letter of credit.E) C) and D)
F) B) and D)

Question 14

Products that sell at home usually require considerable adaptation to be well received in foreign markets.

Accepted Answer

A) True 
 B)False

Question 15

Economies of scale refers to

Accepted Answer

A)   learning effects from manufacturing experience.
B)   the incremental drop in costs that results from the doubling of output.
C)   efficiencies that are most common in low-tech operations.
D)   gains from the spreading of investment across more units of production.E) None of the above
F) All of the above

Question 16

Increasingly, small firms find that they must locate their operations abroad if they are to keep their contracts as suppliers to large companies.

Accepted Answer

A) True 
 B)False

Question 17

International franchising is essentially an alternative form of exporting.

Accepted Answer

A) True 
 B)False

Question 18

Most small firms choose to outsource internationally in order to

Accepted Answer

A)   avoid domestic taxes.
B)   avoid competition from other US companies.
C)   cut costs and access talented foreign employees.
D)   take advantage of legal loop-holes in foreign countries.E) All of the above
F) A) and D)

Question 19

Recent research has shown that globalizing early in a company's life tends to lead to

Accepted Answer

A)   lower levels of firm risk.
B)   a boost to the firm's reputation.
C)   increased sales growth.
D)   financial disaster.E) C) and D)
F) B) and C)

Question 20

How should a small business go about analyzing international markets and planning a strategy to enter targeted markets? Identify specific sources of information in your answer.

Accepted Answer

First, a small business should begin its...

Exam 18: Global Opportunities for Small Business

The unique features of a local environment can yield benefits to small firms locating there.

Correct AnswerverifiedShow Answer

Crossborder Manufacturing USA has developed a new and wholly-owned subsidiary in another country that is most accurately described as

Correct AnswerverifiedShow Answer

Identify the four primary motivations that encourage entrepreneurs to go global and provide an example of a traditional motivation and an emerging motivation for each.

Correct AnswerverifiedShow Answer

Forming from scratch a wholly-owned subsidiary in another country can be most accurately described as

Correct AnswerverifiedShow Answer

International franchising is essentially an alternative form of exporting.

Correct AnswerverifiedShow Answer

Products that sell at home usually require considerable adaptation to be well received in foreign markets.

Correct AnswerverifiedShow Answer

Economic risk refers to the

Correct AnswerverifiedShow Answer

How should a small business go about analyzing international markets and planning a strategy to enter targeted markets? Identify specific sources of information in your answer.

Correct AnswerverifiedFirst, a small business should begin its...View AnswerShow Answer

International dissimilarities in language and culture, business practices, and government regulations are fading over time.

Correct AnswerverifiedShow Answer

Newplant has the most experienced production employees and the lowest unit costs in its industry, indicating that it had benefited from

Correct AnswerverifiedShow Answer

Importing can be described as the

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Born-global firms are small companies that begin with cross-border businesses around the globe.

Correct AnswerverifiedShow Answer

Seeking to extend the product life cycle by expanding into international markets has become a less effective strategy, in part, because

Correct AnswerverifiedShow Answer

Increasingly, small businesses are expanding internationally to

Correct AnswerverifiedShow Answer

Increasingly, small firms find that they must locate their operations abroad if they are to keep their contracts as suppliers to large companies.

Correct AnswerverifiedShow Answer

Economies of scale refers to

Correct AnswerverifiedShow Answer

Recent research has shown that globalizing early in a company's life tends to lead to

Correct AnswerverifiedShow Answer

When it comes to gaining access to resources, a traditional motivation for going global has been to

Correct AnswerverifiedShow Answer

Most small firms choose to outsource internationally in order to

Correct AnswerverifiedShow Answer

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First, a small business should begin its...
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