Question 1

List five of the nine major reasons why an entrepreneur would go global

Accepted Answer

The answer of List five of the nine major reasons...

Question 2

There are three general classifications for exporting; direct,indirect and third-party.

Accepted Answer

A) True 
 B)False

Question 3

Culture encompasses a wide variety of elements,including language,social structure,religion,political philosophy,economic philosophy,education,and manners and customs.

Accepted Answer

A) True 
 B)False

Question 4

Motivations for going global,discussed in the text,include all the following except:

Accepted Answer

A)  cheap shipping costs 
B)  excess production capacity 
C)  technological advantage 
D)  competitive pressures

Question 5

The laws governing business arrangements have been standardized over 150 international legal systems.

Accepted Answer

A) True 
 B)False

Question 6

In selecting a foreign market,two critical issues for the entrepreneur are foreign market selection and market entry strategy.

Accepted Answer

A) True 
 B)False

Question 7

For a U.S.-based entrepreneurial firm,the 75 percent of the world's population living outside the United States offers a very large market opportunity.

Accepted Answer

A) True 
 B)False

Question 8

Licensing is best described as:

Accepted Answer

A)  a nonequity method of international business in which an entrepreneur contracts his or her management techniques and skills to a (foreign) purchasing company. 
B)  a method of doing international business whereby a foreign entrepreneur supplies the manufacturing technology or infrastructure for a business and then turns it over to local owners. 
C)  a method that involves giving a foreign manufacturer the right to use a patent, technology, production process, or product in return for the payment of a royalty. 
D)  an equity partnership that involves selling patents to foreign governments.

Question 9

International entrepreneurial decisions are more complex than domestic decisions due to uncontrollable factors such as economic development and stage of economic development.

Accepted Answer

A) True 
 B)False

Question 10

________ is not considered a nonequity arrangement.

Accepted Answer

A)  Turn-key projects 
B)  Exporting 
C)  Licensing 
D)  Management contracts

Question 11

Which among the following influences whether customers are able to use the good or service properly and whether they are able to understand the firm's advertising or other promotional messages

Accepted Answer

A)  Political philosophy 
B)  Religion 
C)  Manners and customs 
D)  Education

Question 12

________ is a type of merger in which acquiring and acquired companies have related production and/or distribution activities but do not have products that compete directly with each other.

Accepted Answer

A)  Market extension merger 
B)  Horizontal merger 
C)  Product extension merger 
D)  Vertical merger

Question 13

If the legal system of the country the global entrepreneur is dealing with does not have a good track record,it is not possible for the contract to contain any agreement that contract disputes will be heard in the courts of a different country or home country.

Accepted Answer

A) True 
 B)False

Exam 5: Identifying and Analyzing Domestic and International Opportunities

List five of the nine major reasons why an entrepreneur would go global

There are three general classifications for exporting; direct,indirect and third-party.

Culture encompasses a wide variety of elements,including language,social structure,religion,political philosophy,economic philosophy,education,and manners and customs.

Motivations for going global,discussed in the text,include all the following except:

The laws governing business arrangements have been standardized over 150 international legal systems.

In selecting a foreign market,two critical issues for the entrepreneur are foreign market selection and market entry strategy.

For a U.S.-based entrepreneurial firm,the 75 percent of the world's population living outside the United States offers a very large market opportunity.

Licensing is best described as:

International entrepreneurial decisions are more complex than domestic decisions due to uncontrollable factors such as economic development and stage of economic development.

________ is not considered a nonequity arrangement.

Which among the following influences whether customers are able to use the good or service properly and whether they are able to understand the firm's advertising or other promotional messages

________ is a type of merger in which acquiring and acquired companies have related production and/or distribution activities but do not have products that compete directly with each other.

If the legal system of the country the global entrepreneur is dealing with does not have a good track record,it is not possible for the contract to contain any agreement that contract disputes will be heard in the courts of a different country or home country.