Question 1

When a small business uses significant resources to seek increased sales from exporting,it is what stage of internationalization?

Accepted Answer

In the stage of internationalization referred to as "Export department" (Stage 3), a small business dedicates significant resources towards increasing sales through exporting. This stage involves a more structured and focused approach to exporting, often with a dedicated team or department handling the export activities, indicating a higher level of commitment and effort towards international markets compared to the earlier stages.

Question 2

International sales intensity represents

Accepted Answer

International sales intensity represents the amount of international sales as a proportion of total sales. It is an important indicator of the level of internationalization of a business.

Question 3

All of the following are first mover advantages EXCEPT

Accepted Answer

The answer of All of the following are first mover...

Question 4

First mover advantage includes all of the following EXCEPT

Accepted Answer

First mover advantage typically includes benefits such as technological leadership, first access to resources, and the ability to impose switching costs on customers, but it does not inherently provide a better ability to forecast market conditions. Forecasting market conditions depends on a company's research and analytical capabilities, not on its timing of market entry.

Question 5

Which of the following statements about small businesses in the US is FALSE?

Accepted Answer

Small businesses are a significant source of employment and innovation in the US economy, generating more than 15% of all new jobs annually. In fact, they are responsible for a much larger share of net new job creation, often cited as around 64% according to the Small Business Administration. This makes option B the false statement, as it significantly underestimates the job creation power of small businesses.

Question 6

Technological leadership,as a source of first mover advantage refers to

Accepted Answer

Technological leadership as a source of first mover advantage refers to a company being the first one to use a new technology. This can give them an advantage in terms of brand recognition, market share, and customer loyalty, among other things.

Question 7

According to the text,which of the following participation strategies do small businesses emphasize?

Accepted Answer

The text states that "small businesses typically emphasize exporting" as a participation strategy in international business. Therefore, option D (Exporting) is the best choice.

Question 8

When demand for a small business is so high in a foreign country that it justifies setting up a local branch,which of the following stages of internationalization is the small business at?

Accepted Answer

The answer of When demand for a small business is...

Question 9

The discovery,evaluation and exploitation of market opportunities refers to which of the following?

Accepted Answer

The discovery, evaluation and exploitation of market opportunities is the essence of entrepreneurship. International entrepreneurship involves pursuing opportunities across national borders, but it is still focused on the discovery and exploitation of market opportunities. Small business refers to any independently owned and operated business, regardless of whether it is focused on exploiting a market opportunity. International opportunities may involve discovering and exploiting market opportunities, but they are not the only focus of international business.

Question 10

Successful strategies for copy cats include all of the following EXCEPT

Accepted Answer

Selling products at a global level is not necessarily a successful strategy for copy cats. This choice does not provide any specific advantage for copy cats and may require significant resources and investment. The other choices (being the first to change to a new standard, transferring the location, and seeking abandoned or ignored markets) can all provide opportunities for copy cats to succeed by differentiating themselves from the original product or service.

Question 11

Switching costs are

Accepted Answer

Switching costs refer to the expenses that a customer incurs when they decide to switch from one product or service to another. These costs may include things like time spent researching alternative options, the costs of terminating a contract or subscription, and the costs associated with learning how to use a new product. For businesses, reducing switching costs is often a key objective, as it can make it more difficult for competitors to poach customers.

Question 12

First mover advantages occur when

Accepted Answer

First mover advantages occur when a company moves quickly into a new venture and establishes the business before other firms can react. This allows the company to establish itself in the market and gain a competitive advantage over later entrants.

Question 13

The United Nations and Organization for Economic Cooperation and Development

Accepted Answer

The answer of The United Nations and Organization for Economic...

Question 14

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

Accepted Answer

Entrepreneurs and small businesses often have a better understanding of the local market and business landscape in a new country, and can provide valuable support and assistance to multinational companies looking to establish themselves in that market. Customers, the World Bank, and trade shows can also be helpful, but may not provide the same level of specific and targeted assistance.

Question 15

Which of the following is NOT a common customer contact technique used by small firms to get find customers?

Accepted Answer

While industry advisory boards may be a valuable resource for small firms, they are not typically used as a direct customer contact technique. Trade shows, government sponsored trade missions, and catalog expositions are all common ways for small firms to connect with potential customers.

Question 16

A multinational manager is studying the data on total entrepreneurial activity ratings by country.She is most likely doing this in order to

Accepted Answer

The manager is studying the data on total entrepreneurial activity ratings by country to assess the level of entrepreneurship in a country.

Question 17

The more common techniques of making international contacts used by small businesses include all of the following EXCEPT

Accepted Answer

Seeking advice from foreign companies is not typically listed as a common technique for making international contacts for small businesses. Instead, small businesses often participate in trade shows, government-sponsored trade missions, and catalogue expositions to expand their international network.

Question 18

Copycat businesses

Accepted Answer

Copycat businesses can use any of the aforementioned strategies to compete with existing businesses. They can either directly replicate what has already been done (me too), adapt an existing product or service to make it slightly different or better, or find a niche market that existing businesses are not serving. Ultimately, copycat businesses aim to gain market share from existing competitors by offering something similar or better.

Question 19

Future Tech International sells high tech products in Latin America,a market traditionally ignored by many high tech companies.What successful copycat strategy does this move represent?

Accepted Answer

Future Tech International's strategy of selling high tech products in Latin America represents seeking abandoned or ignored markets, which has been successful for them.

Question 20

An entry wedge is

Accepted Answer

An entry wedge refers to a strategic competitive advantage used by a new player to break into established commercial activity or industry, hence option A is the correct choice. Option B is a bit too narrow in its definition, and option C is not true as established companies can also use entry wedges to enter new markets.

Quiz 7: Small Businesses and International Entrepreneurship: