Question 1

Which of the following is not an aspect of nonverbal or hidden language?

Accepted Answer

A) Energy 
B) Business relationships 
C) Space 
D) Time

Question 2

A vertical merger is the combination of two firms that produce one or more of the same or closely related products in the same geographical area.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

_____________ is the process of an entrepreneur conducting business activities across national borders.

Accepted Answer

A) Intrapreneurship 
B) International entrepreneurship 
C) Domestic entrepreneurship 
D) Direct importing

Question 5

Useful government sources of information include Business Source Complete and Mergent.

Accepted Answer

A) True 
 B)False

Question 6

What term describes the practice of paying for goods indirectly through another source?

Accepted Answer

A) Licensing 
B) Barter 
C) Promotion 
D) Exporting

Question 7

Entrepreneurs doing business in the former U.S.S.R.should be aware that barter,or third-party arrangements,are commonplace.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statement is(are)true?

Accepted Answer

A) Most countries have laws and court procedures protecting intellectual property such as those in the United States. 
B) Civil laws tend to be relatively nonspecific. 
C) Laws of a country regulate the manner in which business transactions are executed. 
D) Global entrepreneurs cannot specify in the contract that any contract disputes will be heard in the courts of another country.

Question 9

A _____ is the joining of two firms in order to form a third company in which the equity is shared.

Accepted Answer

A) majority interest 
B) joint venture 
C) product extension merger 
D) minority interest

Question 10

The General Agreement on Tariffs and Trade is an attempt to impose significant tariffs on business between nations.

Accepted Answer

A) True 
 B)False

Question 11

International entrepreneurship is the process of an entrepreneur conducting business activities across national boundaries.

Accepted Answer

A) True 
 B)False

Question 12

Transfer risk is the risk in attempting to shift assets or other funds out of the country.

Accepted Answer

A) True 
 B)False

Question 13

A product extension merger occurs when 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) True 
 B)False

Question 14

All of the following are questions an opportunity assessment plan might answer except:

Accepted Answer

A) How much capital do I need? 
B) What market need does it fill? 
C) What business skills do I have? 
D) Can a patent be obtained?

Question 15

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

Question 16

_____ has the main disadvantages of high transportation costs,trade barriers,and problems with local marketing agents.

Accepted Answer

A) Exporting 
B) Turn-key projects 
C) Licensing 
D) Franchising

Question 17

Define political risk analysis,and identify and briefly describe the three major types of political risk.
A.Operating risk - risk of interference with the operations of the venture
B.Transfer risk - risk in attempting to shift assets or other funds out of the country
C.Ownership risk - the largest potential risk,where the country takes over the venture's property and employees

Accepted Answer

The answer of Define political risk analysis,and identify and briefly...

Question 18

Which among the following political risks is considered the biggest risk of all?

Accepted Answer

A) Transfer risk 
B) Ownership risk 
C) Investment risk 
D) Operating risk

Question 19

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 20

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

Exam 5: Identifying and Analyzing Domestic and International Opportunities

Which of the following is not an aspect of nonverbal or hidden language?

A vertical merger is the combination of two firms that produce one or more of the same or closely related products in the same geographical area.

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

_____________ is the process of an entrepreneur conducting business activities across national borders.

Useful government sources of information include Business Source Complete and Mergent.

What term describes the practice of paying for goods indirectly through another source?

Entrepreneurs doing business in the former U.S.S.R.should be aware that barter,or third-party arrangements,are commonplace.

Which of the following statement is(are) true?

A _____ is the joining of two firms in order to form a third company in which the equity is shared.

The General Agreement on Tariffs and Trade is an attempt to impose significant tariffs on business between nations.

International entrepreneurship is the process of an entrepreneur conducting business activities across national boundaries.

Transfer risk is the risk in attempting to shift assets or other funds out of the country.

A product extension merger occurs when acquiring and acquired companies have related production and/or distribution activities but do not have products that compete directly with each other.

All of the following are questions an opportunity assessment plan might answer except:

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.

_____ has the main disadvantages of high transportation costs,trade barriers,and problems with local marketing agents.

Which among the following political risks is considered the biggest risk of all?

Licensing is best described as:

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