Question 1

The unauthorized use of intellectual property is called

Accepted Answer

A)  royalties. 
B)  international franchising. 
C)  foreign licensing. 
D)  counterfeit activity. 
A)  royalties. 
B)  international franchising. 
C)  foreign licensing. 
D)  counterfeit activity.

Question 2

Increasingly, small firms are going global in search of raw materials.

Accepted Answer

A) True 
 B)False

Question 3

What five countries have the greatest commercial potential for an entrepreneur who is considering going global?

Accepted Answer

Because the primary motivation for going

Question 4

The U.S. Department of Industry provides information for entrepreneurs considering global operations.

Accepted Answer

A) True 
 B)False

Question 5

A small business should begin its research of going global by exhausting primary sources of information.

Accepted Answer

A) True 
 B)False

Question 6

Some small firms choose to outsource internationally in order to

Accepted Answer

A)  avoid domestic taxes. 
B)  avoid competition from other U.S. companies. 
C)  cut costs and access talented foreign employees. 
D)  take advantage of legal loop-holes in foreign countries. 
A)  avoid domestic taxes. 
B)  avoid competition from other U.S. companies. 
C)  cut costs and access talented foreign employees. 
D)  take advantage of legal loop-holes in foreign countries.

Question 7

Melanie's Marbles is a young company that buys unusual marbles from many places around the world. To provide assurance to vendors that they will be paid, Melanie's Marbles has established a(n) _____ at its bank.

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 8

A small company can deal with changing currency rates by

Accepted Answer

A)  stating contracts in U.S. dollars as opposed to the foreign currency. 
B)  locating all plants in countries with the most advantageous exchange position. 
C)  limiting sales in each country so as to reduce exposure to any one currency. 
D)  following the advice of the international sales manager. 
A)  stating contracts in U.S. dollars as opposed to the foreign currency. 
B)  locating all plants in countries with the most advantageous exchange position. 
C)  limiting sales in each country so as to reduce exposure to any one currency. 
D)  following the advice of the international sales manager.

Question 9

Globalization explains the increasing similarity of markets around the world.

Accepted Answer

A) True 
 B)False

Question 10

An intermediary that works for foreign firms that are interested in buying U.S. products and is paid a commission for its services is called a(n)

Accepted Answer

A)  export agent. 
B)  export trading company. 
C)  piggyback marketer. 
D)  confirming house. 
A)  export agent. 
B)  export trading company. 
C)  piggyback marketer. 
D)  confirming house.

Question 11

Foreign licensing can be used to protect against counterfeit activity.

Accepted Answer

A) True 
 B)False

Question 12

Products that sell at home usually require little or no adaptation to be well received in foreign markets.

Accepted Answer

A) True 
 B)False

Question 13

The term BRICs refers to Bangladesh, Romania, Ireland, Czechoslovakia, and Slovenia, all emerging markets.

Accepted Answer

A) True 
 B)False

Question 14

A business that locates a production facility or sales office overseas by purchasing a foreign business from another firm is participating in

Accepted Answer

A)  a cross-border acquisition. 
B)  a greenfield venture. 
C)  offshoring. 
D)  outsourcing. 
A)  a cross-border acquisition. 
B)  a greenfield venture. 
C)  offshoring. 
D)  outsourcing.

Question 15

Experience curve efficiencies refers to

Accepted Answer

A)  expanding a business globally to decrease per unit costs. 
B)  having more experienced team members. 
C)  insights gained by employees that lead to improved work performance. 
D)  the outcomes of learning effects and economies of scale. 
A)  expanding a business globally to decrease per unit costs. 
B)  having more experienced team members. 
C)  insights gained by employees that lead to improved work performance. 
D)  the outcomes of learning effects and economies of scale.

Question 16

While opening an overseas sales office can be effective, small businesses should wait until sales in the local market are great enough to justify the move.

Accepted Answer

A) True 
 B)False

Question 17

A small business owner who decides to expand internationally should study the competitive forces in the foreign market.

Accepted Answer

A) True 
 B)False

Question 18

Edward is a young entrepreneur with grand plans, including international expansion of his new company. Once that decision is made, Edward's next step is to

Accepted Answer

A)  begin to hire employees with international experience. 
B)  join a trade mission. 
C)  plan a strategy that increases the potential of the firm. 
D)  spend some time estimating the market potential of various countries. 
A)  begin to hire employees with international experience. 
B)  join a trade mission. 
C)  plan a strategy that increases the potential of the firm. 
D)  spend some time estimating the market potential of various countries.

Question 19

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

Accepted Answer

A)  through learning effects from manufacturing experience. 
B)  through incremental drops in costs that result from the doubling of output. 
C)  by spreading investment costs across more units of output. 
D)  through efficiencies of operations in service operations. 
A)  through learning effects from manufacturing experience. 
B)  through incremental drops in costs that result from the doubling of output. 
C)  by spreading investment costs across more units of output. 
D)  through efficiencies of operations in service operations.

Exam 18: Global Opportunities for Small Businesses

The unauthorized use of intellectual property is called

Increasingly, small firms are going global in search of raw materials.

What five countries have the greatest commercial potential for an entrepreneur who is considering going global?

The U.S. Department of Industry provides information for entrepreneurs considering global operations.

A small business should begin its research of going global by exhausting primary sources of information.

Some small firms choose to outsource internationally in order to

Melanie's Marbles is a young company that buys unusual marbles from many places around the world. To provide assurance to vendors that they will be paid, Melanie's Marbles has established a(n) _____ at its bank.

A small company can deal with changing currency rates by

Globalization explains the increasing similarity of markets around the world.

An intermediary that works for foreign firms that are interested in buying U.S. products and is paid a commission for its services is called a(n)

Foreign licensing can be used to protect against counterfeit activity.

Products that sell at home usually require little or no adaptation to be well received in foreign markets.

The term BRICs refers to Bangladesh, Romania, Ireland, Czechoslovakia, and Slovenia, all emerging markets.

A business that locates a production facility or sales office overseas by purchasing a foreign business from another firm is participating in

Experience curve efficiencies refers to

While opening an overseas sales office can be effective, small businesses should wait until sales in the local market are great enough to justify the move.

A small business owner who decides to expand internationally should study the competitive forces in the foreign market.

Edward is a young entrepreneur with grand plans, including international expansion of his new company. Once that decision is made, Edward's next step is to

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

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

Filters