Exam 18: Global Opportunities for Small Businesses

Which of the following government organizations is an excellent source of information about analyzing markets, financing, and planning strategy?

A greenfield venture is where small firms purchase a foreign business from another firm.

Learning effects occur when

Born-global firms are small companies launched with cross-border business activities in mind.

A revocable letter of credit is an agreement to honor a draft or other demand for payment when specified conditions are met and can only be changed by the seller.

Match the term with its definition. -The company selling licensing rights

An economic risk for a global company is the threat of new labeling regulations.

A fundamental activity for global small business success is

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

Learning effects occur when the insight an employee gains from experience leads to improved work performance.

Experience curve efficiencies are the per-unit savings gained from the repeated production of the same product.

Match the term with its definition. -An agreement issued by a bank to honor a draft or other demand for payment when specified conditions are met

Conducting business internationally will never be as easy as doing business on the domestic front.

Match the term with its definition. -A document indicating that a product has been shipped and the title to that product has been transferred

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

Together, China and India account for more than 50 percent of the world's 6 billion inhabitants.

A production capacity question that needs to be answered before a company goes global with operations is "How much additional production capacity will be needed at home and abroad?"

When the exchange rate for a currency rises relative to that of another country, the rising currency

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 _____ risk.

John is interested in joining with a large corporation in a cooperative venture to share risks and pool resources for his small auto parts manufacturing business. The strategy option he is exploring could best be described as