Exam 3: Organizational Participants That Make International Business Happen

________ specialize in international construction, engineering, design, and architectural projects, usually for airports, hospitals, factories, power plants, oil refineries, campuses, and upgrades to public transportation such as bridges, roadways, and rail systems.

For most exporters, relying on an independent foreign distributor is a low-cost way to enter foreign markets.

A retailer represents the first link between distributors and end users.

The number and role of facilitators have declined due to the complexity of international business operations, intense competition, and technological advances.

The emergence of born global firms is associated with international entrepreneurship.

Which of the following refers to the participant responsible for conceiving and designing a product for consumption by customers worldwide?

Which of the following assist focal firms in resolving disputes with foreign business partners?

As defined in Canada and the United States, small and medium-sized enterprises (SMEs) are manufacturers or service providers with ________ or fewer employees.

Many commercial banks are reluctant to extend credit to SMEs.

Sales representatives act as distribution channel intermediaries.

In a short essay, identify the services provided by distribution channel intermediaries for focal firms. Why do exporters rely on intermediaries?

Nanocell (Scenario) Two years ago, Nanocell, a small Canadian company, began manufacturing a solar cell that holds a charge for 24 hours, many times longer than any competing solar cell. International sales of the palm-sized solar cell occurred quickly, and soon Nanocell was exporting to Australia, China, and Africa. Today, Nanocell is a growing multinational enterprise with sales expected to soar even higher. -Nanocell's management team is considering entering into other foreign markets using a strategy of foreign direct investment (FDI). Which of the following, if true, would most support the claim that expansion through FDI would benefit Nanocell?

A focal firm that creates and owns a new legal entity through equity investment or pooling of assets is called a(n) ________.

Retailers play critical roles in the initial stages of the international value chain.

The value chain is not the complete business system of the focal firm.

In an international value chain, sourcing occurs before research and development.

Nanocell (Scenario) Two years ago, Nanocell, a small Canadian company, began manufacturing a solar cell that holds a charge for 24 hours, many times longer than any competing solar cell. International sales of the palm-sized solar cell occurred quickly, and soon Nanocell was exporting to Australia, China, and Africa. Today, Nanocell is a growing multinational enterprise with sales expected to soar even higher. -Which of the following statements is best supported by the story of Nanocell?

Peter, a graduate student from Michigan, ordered a notebook from Opus Inc., an American MNC manufacturing and selling computers and related products. The notebook that Peter ordered from Michigan was assembled in Opus' factory in Taipei. This exemplifies the ________ stage in the international value chain.

Which of the following stages of the international value chain immediately precedes the marketing stage?

Sovereign wealth funds are owned by ________.