Question 1

An increasing number of technology companies are relocating their operations in Russia 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. 
A)  obtain raw materials. 
B)  gain access to skilled labor. 
C)  create job opportunities for domestic employees. 
D)  take advantage of government incentives.

Question 2

In the past, companies have left the United States 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. 
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.

Question 3

The unique features of a local environment can yield benefits to small firms locating there even when the costs are greater.

Accepted Answer

A) True 
 B)False

Question 4

Match the term with its definition.
-A strategy that allows a company in another country to purchase the rights to manufacture and sell a different company's products in international markets

Accepted Answer

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) 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

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Match the term with its definition.
-A trip organized to help small business owners meet with potential foreign buyers and establish strategic alliances in an international market

Accepted Answer

A) cross-border acquisition 
B) exporting 
C) globalization 
D) greenfield venture 
E) importing
F)offshoring
G)trade intermediary
H)trade mission 
A) cross-border acquisition 
B) exporting 
C) globalization 
D) greenfield venture 
E) importing
F)offshoring
G)trade intermediary
H)trade mission

Question 7

Exporting involves the sale of products produced in the home country to customers in another country.

Accepted Answer

A) True 
 B)False

Question 8

For each unit produced under the licensing contract, the Hong Kong baker will pay _____ to Finagle-A-Bagel.

Accepted Answer

A)  trademark fees 
B)  royalties 
C)  general licensing fees 
D)  copyright fees 
A)  trademark fees 
B)  royalties 
C)  general licensing fees 
D)  copyright fees

Question 9

Once an exporter has shipped a product internationally and the title has been transferred, the exporter receives a(n)

Accepted Answer

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

Question 10

Match the term with its definition.
-Selling products produced in another country to buyers in the home country

Accepted Answer

A) cross-border acquisition 
B) exporting 
C) globalization 
D) greenfield venture 
E) importing
F)offshoring
G)trade intermediary
H)trade mission 
A) cross-border acquisition 
B) exporting 
C) globalization 
D) greenfield venture 
E) importing
F)offshoring
G)trade intermediary
H)trade mission

Question 11

When it comes to cutting costs, many foreign companies have chosen to locate production facilities in Mexico to

Accepted Answer

A)  obtain tariff reductions. 
B)  find raw materials. 
C)  follow large client firms that locate abroad. 
D)  find suppliers offering highly specialized products. 
A)  obtain tariff reductions. 
B)  find raw materials. 
C)  follow large client firms that locate abroad. 
D)  find suppliers offering highly specialized products.

Question 12

According to the 2017 BRICS Markets, which of the following countries has the greatest economic growth?

Accepted Answer

A)  Brazil 
B)  China 
C)  India 
D)  Russia 
A)  Brazil 
B)  China 
C)  India 
D)  Russia

Question 13

Allen is considering entering the global marketplace. Which of the following questions should be answered first?

Accepted Answer

A)  Does the company have the necessary "deep pockets" to follow through? 
B)  Are the company's domestic operations capable of subsidizing overseas operations? 
C)  Is the company's technology sufficient to enter into the international game? 
D)  Is the company up to the task? 
A)  Does the company have the necessary "deep pockets" to follow through? 
B)  Are the company's domestic operations capable of subsidizing overseas operations? 
C)  Is the company's technology sufficient to enter into the international game? 
D)  Is the company up to the task?

Question 14

Importing involves

Accepted Answer

A)  the authorized use of intellectual property. 
B)  selling products from abroad in the firm's home market. 
C)  purchasing the right to manufacture and sell a firm's product in overseas markets. 
D)  the sale of products produced in the home country to customers in another country. 
A)  the authorized use of intellectual property. 
B)  selling products from abroad in the firm's home market. 
C)  purchasing the right to manufacture and sell a firm's product in overseas markets. 
D)  the sale of products produced in the home country to customers in another country.

Question 15

A company with the most experienced production employees and the lowest unit costs in its industry indicates that it has benefited from

Accepted Answer

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

Question 16

If an olive oil importer sets up operations in Italy to be near its supplier, the company is going global by

Accepted Answer

A)  capitalizing on the special features of location. 
B)  cutting costs. 
C)  expanding its market. 
D)  gaining access to resources. 
A)  capitalizing on the special features of location. 
B)  cutting costs. 
C)  expanding its market. 
D)  gaining access to resources.

Question 17

Match the term with its definition.
-The expansion of international business, encouraged by converging market preferences, falling trade barriers, and the integration of national economies

Accepted Answer

A) cross-border acquisition 
B) exporting 
C) globalization 
D) greenfield venture 
E) importing
F)offshoring
G)trade intermediary
H)trade mission 
A) cross-border acquisition 
B) exporting 
C) globalization 
D) greenfield venture 
E) importing
F)offshoring
G)trade intermediary
H)trade mission

Question 18

Nike and many other companies engage in international outsourcing, which refers to

Accepted Answer

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

Question 19

A company that operates a customer service call center is likely to contract with a company in India to

Accepted Answer

A)  capitalize on the special features of location. 
B)  cut costs. 
C)  expand its market. 
D)  gain access to resources. 
A)  capitalize on the special features of location. 
B)  cut costs. 
C)  expand its market. 
D)  gain access to resources.

Question 20

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 of the following questions would need to be answered in relation to the pasta company's financial capacity objectives?

Accepted Answer

A)  How are the initial expenses of expanding to Canada going to be covered? 
B)  What international expertise does Antonio have, specifically does he speak French? 
C)  What are Antonio's reasons for exporting to Canada? 
D)  How much additional production capacity will be needed at home and abroad? 
A)  How are the initial expenses of expanding to Canada going to be covered? 
B)  What international expertise does Antonio have, specifically does he speak French? 
C)  What are Antonio's reasons for exporting to Canada? 
D)  How much additional production capacity will be needed at home and abroad?

Exam 18: Global Opportunities for Small Businesses

An increasing number of technology companies are relocating their operations in Russia to

In the past, companies have left the United States to

The unique features of a local environment can yield benefits to small firms locating there even when the costs are greater.

Match the term with its definition. -A strategy that allows a company in another country to purchase the rights to manufacture and sell a different company's products in international markets

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

Match the term with its definition. -A trip organized to help small business owners meet with potential foreign buyers and establish strategic alliances in an international market

Exporting involves the sale of products produced in the home country to customers in another country.

For each unit produced under the licensing contract, the Hong Kong baker will pay _____ to Finagle-A-Bagel.

Once an exporter has shipped a product internationally and the title has been transferred, the exporter receives a(n)

Match the term with its definition. -Selling products produced in another country to buyers in the home country

When it comes to cutting costs, many foreign companies have chosen to locate production facilities in Mexico to

According to the 2017 BRICS Markets, which of the following countries has the greatest economic growth?

Allen is considering entering the global marketplace. Which of the following questions should be answered first?

Importing involves

A company with the most experienced production employees and the lowest unit costs in its industry indicates that it has benefited from

If an olive oil importer sets up operations in Italy to be near its supplier, the company is going global by

Match the term with its definition. -The expansion of international business, encouraged by converging market preferences, falling trade barriers, and the integration of national economies

Nike and many other companies engage in international outsourcing, which refers to

A company that operates a customer service call center is likely to contract with a company in India 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 of the following questions would need to be answered in relation to the pasta company's financial capacity objectives?

The Entrepreneurial Lifethe Entrepreneurial Life

Integrity, Ethics, and Social Entrepreneurship

Starting a Small Business

Franchises and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Organizational Plan: Teams, Legal Structures, Alliances, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product Development and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Professional Management and the Small Business

Managing Human Resources

Managing Small Business Operations

Managing the Firms Assets

Managing Risk

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