Question 1

In Spain,patience is a must for conducting business;Spaniards like to get to know business associates before working with them.

Accepted Answer

A) True 
 B)False

Question 2

John wants to expand into the foreign markets,but he can't convince his partners.They feel international markets are the domain of large corporations.John is facing which barrier to international trade?

Accepted Answer

A) Financing 
B) Political 
C) Cultural 
D) Attitude 
A) Financing 
B) Political 
C) Cultural 
D) Attitude

Question 3

Selling to a resident buying office is just like selling to domestic customers since the buying office handles all of the details of exporting the products.

Accepted Answer

A) True 
 B)False

Question 4

Even though large companies must view themselves as "global companies" if they are to succeed,small companies cannot because they have a significant competitive disadvantage in the global environment.

Accepted Answer

A) True 
 B)False

Question 5

The simplest and least expensive way to conduct international business is through:

Accepted Answer

A) foreign licensees. 
B) a Web site. 
C) joint ventures. 
D) trade intermediaries. 
A) foreign licensees. 
B) a Web site. 
C) joint ventures. 
D) trade intermediaries.

Question 6

Fortunately for U.S.business owners,American customs and habits have become the standard for proper business behavior around the world.

Accepted Answer

A) True 
 B)False

Question 7

Countertrades have significant drawbacks,including:

Accepted Answer

A) getting goods that are of no direct use to the seller. 
B) receiving currency that cannot be exchanged outside the foreign nation. 
C) needing a trading intermediary to arrange the countertrade,thereby raising costs. 
D) being limited in size to $100,000 per deal. 
A) getting goods that are of no direct use to the seller. 
B) receiving currency that cannot be exchanged outside the foreign nation. 
C) needing a trading intermediary to arrange the countertrade,thereby raising costs. 
D) being limited in size to $100,000 per deal.

Question 8

Martha has heard that Iranian caviar is in demand and is planning to start an importing business.After further research,she found that she is not able to import such product from Iran to the United States.This is an example of:

Accepted Answer

A) a tariff. 
B) a quota. 
C) an embargo. 
D) dumping. 
A) a tariff. 
B) a quota. 
C) an embargo. 
D) dumping.

Question 9

Expanding a small business into international markets:

Accepted Answer

A) guarantees its success in the marketplace. 
B) makes it a member of GATT automatically. 
C) often helps it to grow faster and better survive competition. 
D) leads to business failure for companies under $100 million in annual revenue. 
A) guarantees its success in the marketplace. 
B) makes it a member of GATT automatically. 
C) often helps it to grow faster and better survive competition. 
D) leads to business failure for companies under $100 million in annual revenue.

Question 10

The U.S.Commerce Department,the SBA,and the Trade Administration provide a number of services.TOP-the trade opportunity program-is one and through it entrepreneurs can:

Accepted Answer

A) receive up-to-the minute pre-screened sales leads,including joint venture possibilities. 
B) establish business relationships in major markets by helping them make networking contacts. 
C) gain access to contact and product information for more than 82,000 foreign distributors. 
D) place advertisements that will reach thousands of foreign customers. 
A) receive up-to-the minute pre-screened sales leads,including joint venture possibilities. 
B) establish business relationships in major markets by helping them make networking contacts. 
C) gain access to contact and product information for more than 82,000 foreign distributors. 
D) place advertisements that will reach thousands of foreign customers.

Question 11

NAFTA includes provisions reducing tariff and non-tariff barriers and toughening health and safety standards.

Accepted Answer

A) True 
 B)False

Question 12

Small companies often find that competing in foreign markets and selling to foreign customers makes them tougher competitors at home.

Accepted Answer

A) True 
 B)False

Question 13

Successful bartering is easier than countertrade but requires finding a business with complementary needs.

Accepted Answer

A) True 
 B)False

Question 14

A letter of credit reduces the financial risk for the exporter by substituting a bank's creditworthiness for that of the purchaser.

Accepted Answer

A) True 
 B)False

Question 15

Cultural differences among countries have little impact on international trade.

Accepted Answer

A) True 
 B)False

Question 16

Going global tends to make companies more quality and customer conscious.

Accepted Answer

A) True 
 B)False

Question 17

The key to establishing a successful relationship with a trade intermediary is to thoroughly screen in order to determine what type of intermediary the small company needs.

Accepted Answer

A) True 
 B)False

Question 18

George is planning to export fabrics to the Bahamas.After investigating the trade rules,he found that he can only export limited yards of fabrics to the Bahamas.This is an example of:

Accepted Answer

A) a tariff. 
B) a quota. 
C) an embargo. 
D) dumping. 
A) a tariff. 
B) a quota. 
C) an embargo. 
D) dumping.

Question 19

American small business owners are often astounded at how much less government regulation there is in foreign countries.

Accepted Answer

A) True 
 B)False

Question 20

A free trade area is a region in which there are no tariffs or taxes on imports and exports.

Accepted Answer

A) True 
 B)False

Exam 12: Global Marketing Strategies

In Spain,patience is a must for conducting business;Spaniards like to get to know business associates before working with them.

John wants to expand into the foreign markets,but he can't convince his partners.They feel international markets are the domain of large corporations.John is facing which barrier to international trade?

Selling to a resident buying office is just like selling to domestic customers since the buying office handles all of the details of exporting the products.

Even though large companies must view themselves as "global companies" if they are to succeed,small companies cannot because they have a significant competitive disadvantage in the global environment.

The simplest and least expensive way to conduct international business is through:

Fortunately for U.S.business owners,American customs and habits have become the standard for proper business behavior around the world.

Countertrades have significant drawbacks,including:

Martha has heard that Iranian caviar is in demand and is planning to start an importing business.After further research,she found that she is not able to import such product from Iran to the United States.This is an example of:

Expanding a small business into international markets:

The U.S.Commerce Department,the SBA,and the Trade Administration provide a number of services.TOP-the trade opportunity program-is one and through it entrepreneurs can:

NAFTA includes provisions reducing tariff and non-tariff barriers and toughening health and safety standards.

Small companies often find that competing in foreign markets and selling to foreign customers makes them tougher competitors at home.

Successful bartering is easier than countertrade but requires finding a business with complementary needs.

A letter of credit reduces the financial risk for the exporter by substituting a bank's creditworthiness for that of the purchaser.

Cultural differences among countries have little impact on international trade.

Going global tends to make companies more quality and customer conscious.

The key to establishing a successful relationship with a trade intermediary is to thoroughly screen in order to determine what type of intermediary the small company needs.

George is planning to export fabrics to the Bahamas.After investigating the trade rules,he found that he can only export limited yards of fabrics to the Bahamas.This is an example of:

American small business owners are often astounded at how much less government regulation there is in foreign countries.

A free trade area is a region in which there are no tariffs or taxes on imports and exports.

Entrepreneurs: the Driving Force Behind Small Business

Ethics and Social Responsibility: Doing the Right Thing

Creativity and Innovation: Keys to Entrepreneurial Success

Strategic Management and the Entrepreneur

Choosing a Form of Ownership

Franchising and the Entrepreneur

Buying an Existing Business

New Business Planning Process: Feasibility Analysis,business Modeling,

Building a Bootstrap Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

E-Commerce and Entrepreneurship

Creating a Solid Financial Plan

Managing Cash Flow

Sources of Equity Financing

Sources of Debt Financing

Location,layout,and Physical Facilities

Supply Chain Management

Managing Inventory

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

The Legal Environment: Business Law and Government Regulation

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