BA109 Quiz 15 UPDATED Exam Questions
and CORRECT Answers
Unlike an EMC or an ETC, manufacturers' export agents act as international sales
representatives in a limited number of markets for various noncompeting domestic
companies, typically operating on a commission basis. - Correct Answer- True
Which of the following statements is/are true regarding export management companies? -
Correct Answer- All of these
Although franchising is a popular way to do business in the United States, it is not a popular
strategy in international markets. - Correct Answer- False
________ act as international sales representatives in a limited number of markets for various
noncompeting domestic companies, typically operating on a commission basis. - Correct
Answer- Manufacturers' export agents
The first and most difficult step to exporting for the small business is breaking the
psychological barrier, "My company is too small to export." - Correct Answer- True
Small companies with fewer than 20 employees account for more than ________ percent of
U.S. export sales. - Correct Answer- 70
Learning the habits and the customs of the cultures in which they do business is essential for
small business managers trying to go global. - Correct Answer- True
As of 2003, the World Trade Organization (WTO) had 155 member countries that represent
over ________ of all world trade. - Correct Answer- 97 percent
In a(n) ________, a domestic small business forms an alliance with a company in the target
nation for the purpose of exporting to that market. - Correct Answer- foreign joint venture
In the United States alone, companies import more than ________ worth of goods and
services annually. - Correct Answer- $3.2 trillion
, Foreign licensing is a relatively simple way for even the most inexperienced business owner
to extend his reach into global markets. - Correct Answer- True
Which of the following is a common problem in joint ventures? - Correct Answer- All of
these
If a business owner cannot afford to invest in foreign facilities and does not have time to
learn the foreign market, but is willing to give someone else the right to make and market her
product for a fee and royalties, her best bet for entering the foreign market is: - Correct
Answer- foreign licensing.
For an entrepreneur, expanding into international markets: - Correct Answer- helps it grow
faster and survive competition better.
A letter of credit is an agreement between an exporter's bank and a foreign buyer's bank that
guarantees payment to the exporter for a specific shipment of goods. - Correct Answer- True
The only cultural barrier an American small business manager must overcome when
conducting business internationally is the language gap. - Correct Answer- False
Lack of export financing remains a significant barrier to small businesses selling in foreign
markets. - Correct Answer- True
An important guideline for companies wanting to successfully compete internationally is to
familiarize yourself with foreign customs, languages, and cultures, including their lifestyles,
values, customs, and business practices. - Correct Answer- True
Most export management companies (EMCs) are merchant intermediaries that work on a
buy-and-sell arrangement with domestic small companies, providing small businesses with a
low-cost, efficient, independent, international marketing department. - Correct Answer- True
Foreign licensing has its greatest potential in the licensing of: - Correct Answer- intangibles,
such as technology, copyrights, and trademarks.
________, the exchange of goods and services for other goods and services, is one way of
trading with countries that lack convertible currency. - Correct Answer- Bartering
and CORRECT Answers
Unlike an EMC or an ETC, manufacturers' export agents act as international sales
representatives in a limited number of markets for various noncompeting domestic
companies, typically operating on a commission basis. - Correct Answer- True
Which of the following statements is/are true regarding export management companies? -
Correct Answer- All of these
Although franchising is a popular way to do business in the United States, it is not a popular
strategy in international markets. - Correct Answer- False
________ act as international sales representatives in a limited number of markets for various
noncompeting domestic companies, typically operating on a commission basis. - Correct
Answer- Manufacturers' export agents
The first and most difficult step to exporting for the small business is breaking the
psychological barrier, "My company is too small to export." - Correct Answer- True
Small companies with fewer than 20 employees account for more than ________ percent of
U.S. export sales. - Correct Answer- 70
Learning the habits and the customs of the cultures in which they do business is essential for
small business managers trying to go global. - Correct Answer- True
As of 2003, the World Trade Organization (WTO) had 155 member countries that represent
over ________ of all world trade. - Correct Answer- 97 percent
In a(n) ________, a domestic small business forms an alliance with a company in the target
nation for the purpose of exporting to that market. - Correct Answer- foreign joint venture
In the United States alone, companies import more than ________ worth of goods and
services annually. - Correct Answer- $3.2 trillion
, Foreign licensing is a relatively simple way for even the most inexperienced business owner
to extend his reach into global markets. - Correct Answer- True
Which of the following is a common problem in joint ventures? - Correct Answer- All of
these
If a business owner cannot afford to invest in foreign facilities and does not have time to
learn the foreign market, but is willing to give someone else the right to make and market her
product for a fee and royalties, her best bet for entering the foreign market is: - Correct
Answer- foreign licensing.
For an entrepreneur, expanding into international markets: - Correct Answer- helps it grow
faster and survive competition better.
A letter of credit is an agreement between an exporter's bank and a foreign buyer's bank that
guarantees payment to the exporter for a specific shipment of goods. - Correct Answer- True
The only cultural barrier an American small business manager must overcome when
conducting business internationally is the language gap. - Correct Answer- False
Lack of export financing remains a significant barrier to small businesses selling in foreign
markets. - Correct Answer- True
An important guideline for companies wanting to successfully compete internationally is to
familiarize yourself with foreign customs, languages, and cultures, including their lifestyles,
values, customs, and business practices. - Correct Answer- True
Most export management companies (EMCs) are merchant intermediaries that work on a
buy-and-sell arrangement with domestic small companies, providing small businesses with a
low-cost, efficient, independent, international marketing department. - Correct Answer- True
Foreign licensing has its greatest potential in the licensing of: - Correct Answer- intangibles,
such as technology, copyrights, and trademarks.
________, the exchange of goods and services for other goods and services, is one way of
trading with countries that lack convertible currency. - Correct Answer- Bartering
