Question 1

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 B

Question 2

All of the following is true of the General Agreement on Tariffs and Trade except:

Accepted Answer

A)  it includes over 100 nations.
B)  it reduces tariffs,subsidies,and import quotas.
C)  it has extensive authority to enforce trade practices due to its voluntary membership.
D)  it is one of the longest-lasting agreements on trade. D

Question 3

A turn-key project is best defined as:

Accepted Answer

A)  a method of doing business whereby a foreign entrepreneur supplies the manufacturing technology or infrastructure for a business and then turns it over to local owners
B)  giving a foreign manufacturer the right to use a patent in return for the payment of a royalty
C)  a method in which an entrepreneur contracts his or her management techniques and skills to a (foreign) purchasing company
D)  a form of direct foreign investment in which the investing entrepreneur holds a minority ownership position in the foreign venture A

Question 4

A nonequity arrangement is a method by which an entrepreneur can enter a market and obtain sales and profits without direct equity investment in the foreign market.

Accepted Answer

A) True 
 B)False

Question 5

Philip Morris acquiring Miller Brewing is an example of what type of merger?

Accepted Answer

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

Question 6

Explain what the differences are between a business plan and an opportunity assessment plan.

Accepted Answer

The answer of Explain what the differences are between a...

Question 7

The U.S.Chamber of Commerce and Small Business Development Centers are good places to get information and assistance in starting a new business.

Accepted Answer

A) True 
 B)False

Question 8

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 9

_____ 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 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

Only the pricing element in the business strategy of an international entrepreneur has the potential to be affected by the multiplicity of legal environments.

Accepted Answer

A) True 
 B)False

Question 13

_____ is not considered a nonequity arrangement.

Accepted Answer

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

Question 14

Primary data is:

Accepted Answer

A)  data that has been collected by the private sector.
B)  data collected by the government.
C)  original information collected by the entrepreneur.
D)  data that is hard to finD.

Question 15

Profits and tax benefits are common motivations for going global.

Accepted Answer

A) True 
 B)False

Question 16

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 17

An opportunity assessment plan:

Accepted Answer

A)  is the same thing as a business plan.
B)  is longer than a business plan.
C)  has a lot of computer-based spreadsheets.
D)  focuses on the opportunity,not the venture.

Question 18

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 19

A country's _______________ is the difference between the value of a country's imports and exports over time.

Accepted Answer

A)  gross national product
B)  purchasing power parity
C)  current account
D)  foreign exchange reserve

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 5: Identifying and Analyzing Domestic and International Opportunities

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

All of the following is true of the General Agreement on Tariffs and Trade except:

A turn-key project is best defined as:

A nonequity arrangement is a method by which an entrepreneur can enter a market and obtain sales and profits without direct equity investment in the foreign market.

Philip Morris acquiring Miller Brewing is an example of what type of merger?

Explain what the differences are between a business plan and an opportunity assessment plan.

The U.S.Chamber of Commerce and Small Business Development Centers are good places to get information and assistance in starting a new business.

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.

_____ 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.

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

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

Only the pricing element in the business strategy of an international entrepreneur has the potential to be affected by the multiplicity of legal environments.

_____ is not considered a nonequity arrangement.

Primary data is:

Profits and tax benefits are common motivations for going global.

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.

An opportunity assessment plan:

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?

A country's _______________ is the difference between the value of a country's imports and exports over time.

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