Question 1

Global start-ups occur when

Accepted Answer

A)   Companies have consistent licensing agreements.
B)   Companies start exporting as soon as they receive their first order.
C)   Companies begin as multinationals.
D)   Companies move rapidly through the stages of internationalization.E) All of the above
F) A) and B)

Question 2

What is the first mover advantage? What are the most common sources of first mover advantages? How can a small business benefit from first mover advantage?

Accepted Answer

Answers will vary but should reflect the...

Question 3

Small businesses can potentially have more advantages than larger businesses in the global economy because

Accepted Answer

A)   Small companies can change quickly to take advantage of opportunities in new markets.
B)   Larger companies have more slack resources to absorb risk.
C)   Small companies require a lot of travel from their CEOs.
D)   Small companies have more access to resources.E) A) and B)
F) A) and C)

Question 4

One of the major advantages of being involved in Stage 5 (Production Abroad) of the stages of internationalization for small businesses is that it

Accepted Answer

A)   Allows the company to cut the costs of direct investment.
B)   Allows the company to avoid developing a globally integrated network.
C)   Allows the company to gain local advantages such as product adaptation or production effectiveness.
D)   Almost insures that the company will survive and prosper.E) C) and D)
F) None of the above

Question 5

How do small businesses and entrepreneurs affect national economic growth and development? Explain why multinationals consider entrepreneurship levels in the country when making their location choices.

Accepted Answer

Answers will vary but should demonstrate...

Question 6

All of the following are true about small business CEOs EXCEPT

Accepted Answer

A)   Opening new markets is often the personal responsibility of the CEO.
B)   They want to take a break from the daily management of their businesses by going overseas.
C)   New international ventures may threaten their family life.
D)   Their attitudes towards internationalization is a major factor in international success.E) None of the above
F) C) and D) B

Question 7

Definitions of small businesses discussed in the text include the following EXCEPT

Accepted Answer

A)   Number of employees.
B)   Sales revenue.
C)   Industry.
D)   Type of product or service.E) None of the above
F) B) and C)

Question 8

Which of the following is not one of the questions to consider when a small business decides to go international?

Accepted Answer

A)   Do we have a global product or service?
B)   Do we have partners with which to go international?
C)   Do we have the managerial,organizational,and financial resources to go international?
D)   Is there a profitable market for our products or service?E) All of the above
F) B) and D)

Question 9

First mover advantages occur when

Accepted Answer

A)   A company can begin business as a global start-up.
B)   A company adopts global strategies faster than competitors.
C)   Company moves quickly into a new venture and establishes the business before other firms can react.
D)   A company changes production technology.E) A) and B)
F) A) and C)

Question 10

Which of the following has helped to level the playing field for small businesses wanting to go international?

Accepted Answer

A)   Technology and e-commerce
B)   Sources of venture capital
C)   Having a headquarters located near a major customer
D)   The existence of trade showsE) A) and D)
F) A) and C) A

Question 11

Switching costs are

Accepted Answer

A)   Expenses involved when a customer switches to a competitor's product.
B)   Forms of copycat strategies.
C)   The costs incurred by a company when adopting a global standard.
D)   None of the aboveE) None of the above
F) A) and B)

Question 12

The United Nations and Organization for Economic Cooperation and Development

Accepted Answer

A)   Defines a small business as those having less than 500 employees.
B)   Defines a small business as those with less than 100 employees.
C)   Defines a small business based on industry and sales revenue.
D)   All of the aboveE) A) and D)
F) C) and D)

Question 13

Small business barriers to internationalization include all of the following EXCEPT

Accepted Answer

A)   Small size means limited financial and personnel resources for international operations.
B)   Top managers with limited international experience.
C)   Positive attitudes of top managers about becoming multinationals.
D)   Lack of sufficient scale to produce goods or services as efficiently as large companies.E) A) and C)
F) None of the above

Question 14

An entry wedge is

Accepted Answer

A)   A strategic competitive advantage for breaking into the established pattern of commercial activity.
B)   A competitive opening in an industry.
C)   A strategy used by only new companies.
D)   None of the aboveE) C) and D)
F) B) and D)

Question 15

What are the advantages of a small business going international through incremental stages rather than as a global start-up?

Accepted Answer

Answers will vary,but students might men...

Question 16

It is now easier to overcome the barriers to small business internationalization because of all of the following reasons EXCEPT

Accepted Answer

A)   There are more government programs that support small business exporting and sales.
B)   Trade agreements (such as NAFT
A)  are making international trade less complex.
C)   Larger organizations are increasingly more willing to share their global expertise with smaller ones.
D)   There is a wealth of information regarding international opportunities such as those available on the World Wide Web.E) All of the above
F) B) and D)

Question 17

Many multinationals rely on the support and assistance provided by which of the following when entering a new country?

Accepted Answer

A)   Customers
B)   Entrepreneurs and small businesses
C)   World Bank
D)   Trade ShowsE) None of the above
F) B) and D)

Question 18

Consider three of the suggested strategic moves for copycat businesses.Which of these strategies might be most successful when expanding into the international market as opposed to the domestic market?

Accepted Answer

Answers will vary.Students' answers shou...

Question 19

Discuss some of the advantages that the Internet can offer small businesses when going international.

Accepted Answer

Answers will vary but should include som...

Question 20

A small business global culture occurs when

Accepted Answer

A)   Small businesses face global competition.
B)   Key decision makers view competition as more domestic than global.
C)   Organizations have managerial and worker values that view strategic opportunities as global and not just domestic.
D)   Managers give priority to the relevance of national boundaries when conducting international business.E) B) and C)
F) A) and D) C

Exam 7: Small Businesses and International Entrepreneurship:

Global start-ups occur when

Correct AnswerverifiedShow Answer

What is the first mover advantage? What are the most common sources of first mover advantages? How can a small business benefit from first mover advantage?

Correct AnswerverifiedAnswers will vary but should reflect the...View AnswerShow Answer

Small businesses can potentially have more advantages than larger businesses in the global economy because

Correct AnswerverifiedShow Answer

One of the major advantages of being involved in Stage 5 (Production Abroad) of the stages of internationalization for small businesses is that it

Correct AnswerverifiedShow Answer

How do small businesses and entrepreneurs affect national economic growth and development? Explain why multinationals consider entrepreneurship levels in the country when making their location choices.

Correct AnswerverifiedAnswers will vary but should demonstrate...View AnswerShow Answer

All of the following are true about small business CEOs EXCEPT

Correct AnswerverifiedB

Definitions of small businesses discussed in the text include the following EXCEPT

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Which of the following is not one of the questions to consider when a small business decides to go international?

Correct AnswerverifiedShow Answer

First mover advantages occur when

Correct AnswerverifiedShow Answer

Which of the following has helped to level the playing field for small businesses wanting to go international?

Correct AnswerverifiedA

Switching costs are

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The United Nations and Organization for Economic Cooperation and Development

Correct AnswerverifiedShow Answer

Small business barriers to internationalization include all of the following EXCEPT

Correct AnswerverifiedShow Answer

An entry wedge is

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What are the advantages of a small business going international through incremental stages rather than as a global start-up?

Correct AnswerverifiedAnswers will vary,but students might men...View AnswerShow Answer

It is now easier to overcome the barriers to small business internationalization because of all of the following reasons EXCEPT

Correct AnswerverifiedShow Answer

Many multinationals rely on the support and assistance provided by which of the following when entering a new country?

Correct AnswerverifiedShow Answer

Consider three of the suggested strategic moves for copycat businesses.Which of these strategies might be most successful when expanding into the international market as opposed to the domestic market?

Correct AnswerverifiedAnswers will vary.Students' answers shou...View AnswerShow Answer

Discuss some of the advantages that the Internet can offer small businesses when going international.

Correct AnswerverifiedAnswers will vary but should include som...View AnswerShow Answer

A small business global culture occurs when

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