Question 1

The United Nations and Organization for Economic Cooperation and Development

Accepted Answer

A)  Defines a small business as those having less than 500 employees.
B)  Defines a small business as those with less than 100 employees.
C)  Defines a small business based on industry and sales revenue.
D)  All of the above A

Question 2

All of the following are true about small business CEOs EXCEPT

Accepted Answer

A)  Opening new markets is often the personal responsibility of the CEO.
B)  They want to take a break from the daily management of their businesses by going overseas.
C)  New international ventures may threaten their family life.
D)  Their attitudes towards internationalization is a major factor in international success. B

Question 3

Which of the following is NOT a common customer contact technique used by small firms to get find customers?

Accepted Answer

A)  Trade shows
B)  Industry advisory boards
C)  Government sponsored trade missions
D)  Catalog expositions B

Question 4

International sales intensity represents

Accepted Answer

A)  A significant size barrier to internationalization.
B)  The amount of international sales as a proportion of total sales.
C)  The amount of local sales as a proportion of international sales.
D)  Is more relevant for larger businesses.

Question 5

Many multinationals rely on the support and assistance provided by which of the following when entering a new country?

Accepted Answer

A)  Customers
B)  Entrepreneurs and small businesses
C)  World Bank
D)  Trade Shows

Question 6

Definitions of small businesses discussed in the text include the following EXCEPT

Accepted Answer

A)  Number of employees.
B)  Sales revenue.
C)  Industry.
D)  Type of product or service.

Question 7

Small businesses differ from large businesses when going international primarily in

Accepted Answer

A)  The available participation strategies.
B)  The strategies they can use to go international.
C)  Their founder's or entrepreneur's influence.
D)  The available multinational strategies.

Question 8

The more common techniques of making international contacts used by small businesses include all of the following EXCEPT

Accepted Answer

A)  Trade shows.
B)  Seeking advice from foreign companies.
C)  Government sponsored trade missions.
D)  Catalogue expositions.

Question 9

Discuss some of the advantages that the Internet can offer small businesses when going international.

Accepted Answer

The answer of Discuss some of the advantages that the...

Question 10

First mover advantage includes all of the following EXCEPT

Accepted Answer

A)  Technological leadership.
B)  First access to natural and other resources.
C)  Better ability to forecast market conditions.
D)  Switching costs.

Question 11

Which of the following has helped to level the playing field for small businesses wanting to go international?

Accepted Answer

A)  Technology and e-commerce
B)  Sources of venture capital
C)  Having a headquarters located near a major customer
D)  The existence of trade shows

Question 12

It is now easier to overcome the barriers to small business internationalization because of all of the following reasons EXCEPT

Accepted Answer

A)  There are more government programs that support small business exporting and sales.
B)  Trade agreements (such as NAFT
A)   are making international trade less complex.
C)  Larger organizations are increasingly more willing to share their global expertise with smaller ones.
D)  There is a wealth of information regarding international opportunities such as those available on the World Wide Web.

Question 13

Global start-ups occur when

Accepted Answer

A)  Companies have consistent licensing agreements.
B)  Companies start exporting as soon as they receive their first order.
C)  Companies begin as multinationals.
D)  Companies move rapidly through the stages of internationalization.

Question 14

Switching costs are

Accepted Answer

A)  Expenses involved when a customer switches to a competitor's product.
B)  Forms of copycat strategies.
C)  The costs incurred by a company when adopting a global standard.
D)  None of the above

Question 15

An entry wedge is

Accepted Answer

A)  A strategic competitive advantage for breaking into the established pattern of commercial activity.
B)  A competitive opening in an industry.
C)  A strategy used by only new companies.
D)  None of the above

Question 16

Why are small businesses important for most economies?

Accepted Answer

The answer of Why are small businesses important for most...

Question 17

What are the advantages of a small business going international through incremental stages rather than as a global start-up?

Accepted Answer

The answer of What are the advantages of a small...

Question 18

An entrepreneur

Accepted Answer

A)  Creates new ventures that seek profit and growth.
B)  Is seldom the primary force behind a company's decision to go international.
C)  Can accurately predict the risks and uncertainties of his/her ventures.
D)  Faces less uncertainty than a multinational.

Question 19

What is the first mover advantage? What are the most common sources of first mover advantages? How can a small business benefit from first mover advantage?

Accepted Answer

The answer of What is the first mover advantage? What...

Question 20

Discuss ways that a small business manager can make the contacts necessary to implement an exporting strategy.

Accepted Answer

The answer of Discuss ways that a small business manager...

Exam 7: Small Businesses and International Entrepreneurship