MNMT 3850 CHAPTER 15 HOMEWORK QUESTIONS AND ANSWERS

MNMT 3850 CHAPTER 15 HOMEWORK QUESTIONS AND ANSWERS Essentials of Entrepreneurship & Small Business Mgmt., 7e (Scarborough) Chapter 15 Global Opportunities 1) Becoming a global entrepreneur requires: A) constant innovation. B) maintaining a high level of quality and constantly improving it. C) being sensitive to foreign customers' unique requirements and adopting a more respectful attitude toward foreign habits and customs. D) All of the above Answer: D Diff: 1 Page Ref: 570 AACSB: Reflective Thinking Learning Obj.: 1 2) For an entrepreneur, expanding into international markets: A) guarantees its success in the marketplace. B) makes it a member of GATT automatically. C) helps it grow faster and survive competition better. D) leads to business failure for companies under $100 million in annual revenue. Answer: C Diff: 2 Page Ref: 570 AACSB: Analytic Skills Learning Obj.: 1 3) The first obstacle an entrepreneur must overcome on the way to creating a truly global business is: A) finding a joint venture partner. B) learning to think globally. C) locating motivated, multilingual managers for overseas assignments. D) finding overseas distributors for the company's products. Answer: B Diff: 1 Page Ref: 570 AACSB: Reflective Thinking Learning Obj.: 1 4) Before going global, entrepreneurs should ask themselves questions regarding: A) profit potential and commitment of resources for a global effort. B) a viable exit strategy and the cost of not going global. C) the reasons, rationale, and understanding cultural differences. D) All the above 2 Answer: D Diff: 1 Page Ref: 572 AACSB: Analytic Skills Learning Obj.: 1 3 5) All of these are steps small companies follow when they begin conducting global business on the Web except: A) connecting to e-mail. B) building a globally accessible Web site. C) setting up links to related company Web sites. D) using the Web to conduct international market research. Answer: C Diff: 2 Page Ref: 574 AACSB: Use of IT Learning Obj.: 2 6) Which of the following statements is/are true regarding export management companies? A) Most are merchant intermediaries that work on a buy-and-sell arrangement with domestic small companies. B) They provide small businesses with a low-cost, efficient, independent, international marketing department. C) Many specialize in particular products or product lines and offer services ranging from market research and advice or patent protection, to arranging financing and handling shipping. D) All of the above Answer: D Diff: 1 Page Ref: 575-576 AACSB: Reflective Thinking Learning Obj.: 2 7) An export trading company: A) is a business that buys and sells products in many countries, either in its own name or as an agent for its buyer-seller clients. B) typically offers a wide range of services such as exporting, shipping, storing, distributing, and others to their clients. C) is formed by an agreement by which a licenser gives a foreign licensee the right to use a patent, trademark, copyright, technology, and products in return for a percentage of the licensee's sales or profits. D) Both A and C above Answer: D Diff: 1 Page Ref: 575-576 AACSB: Reflective Thinking Learning Obj.: 2 8) Which of the following trade intermediaries lowers the risk of exporting for a small business? A) Export management companies B) Export trading companies C) Resident buying offices D) All of the above Answer: D Diff: 1 Page Ref: 575-576 AACSB: Reflective Thinking Learning Obj.: 2