Exam 18: Global Opportunities for Small Business

Match the term with its definition.Some terms may not be used. a.Economic risk b.Experience curve efficiencies c.Foreign licensing d.International franchising e.International outsourcing f.International strategic alliance g.Learning effects h.Licensee i.Licensor -A strategy that involves accessing foreign labor through contracts with independent providers

A small firm can generate the greatest financial returns using international licensing strategies when these efforts involve the company's products.

International markets are increasingly demanding

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

Once a small business owner decides to expand internationally,s/he should study the competitive forces in the foreign market.

Trade missions typically are sponsored by foreign governments to promote strategic alliances in international markets.

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

The Federation of International Trade Associations website is a source of trade

A Canadian grocery store chain with its corporate headquarters in Quebec has approached Antonio's small pasta firm about possible exporting.Which question would need to be answered in relation to the pasta company's management objectives?

What are the differences and similarities of exporting and importing?

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

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 -A document indicating that a product has been shipped and the title to that product has been transferred

Trade leads are accessed most often through contacts.

A production capacity question that needs to be answered before a company goes global with operations is "Will international sales hurt domestic sales?"

While a small firm can have global operations,size will limit growth.

Increasingly,small businesses are expanding internationally to

Match the term with its definition.Some terms may not be used. a.Born-global firms b.Cross-border acquisition c.Exporting d.Globalization e.Greenfield venture f.Importing g.Offshoring h.Trade intermediary i.Trade mission -The purchase by a business in one country of a company located in another country

The motivation to take domestic products to foreign markets is more relevant today than in the past.

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

Least challenging countries according to the World Bank's Ease of Doing Business Index include Canada,Mexico,and Chile.