Exam 18: Global Opportunities for Small Business

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

For each unit produced under the licensing contract,the Hong Kong baker will pay a small fee called ________________ to Finagle-A-Bagel.

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

What options do small businesses have when dealing with political risks globally?

Match the term with its definition.Some terms may not be used. a.Bill of lading b.Born-global firms 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 unauthorized use of a company's intellectual property or manufacture of its products

A company specializing in flavoring compounds opens a plant near the rain forest.This move enables its biologists to derive flavors without destroying the plants and supports company globalization efforts being related to

Antonio's small pasta firm is considering exporting its products.A Canadian grocery store chain with its corporate headquarters in Quebec has approached him.Which question would need to be answered in relation to the pasta company's financial capacity objectives?

Exporting involves the sale of goods made in the home country to customers in another country.

By informing consumers about the lifestyles of others,globalization is leading toward more diverse consumer preferences.

From a company-owned plant in Pakistan,Howard manufactures specialty apparel items for his small business,Garments of Eden.Because of overseas operations of the U.S.military in the region,Howard fears that his plant may be sabotaged or that the local government may attempt to take over the facility.Specifically,his fears are about

Regional free trade areas have been formed in order to

Increasing sales in international markets is one of many ways to recoup a firm's investments in research and development.

Political moves by an international country have implications on the domestic company's economic risk.

Match the term with its definition.Some terms may not be used. a.Bill of lading b.Born-global firms c.Counterfeit activity d.Economic risk e.Economies of scale f.Exchange rate g.Letter of credit h.Offshoring i.Political risk j.Royalties -Small companies launched with cross-border business activities in mind

After identifying each of the four driving forces that encourage entrepreneurs to go global,discuss the change in traditional to emerging perspectives.

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

As Antonio's pasta company increases in size,the business is able to realize economies of scale

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

What are question topics that should be considered before going global specifically related to management objectives,management experience and resources,production capacity and financial capacity?

The unauthorized use of intellectual property is called