Question 1

While a small businesscan have global operations, size will limit growth.

Accepted Answer

While size can limit growth, it is not necessarily true that a small business cannot have global operations. With the help of technology and outsourcing, small businesses can expand globally without the need for significant financial and human resources.

Question 2

The motivation to take domestic products to foreign markets is more relevant today than in the past.

Accepted Answer

False

Question 3

Today, companies tend to focus on developed countries as they search out international markets.

Accepted Answer

Companies today also focus on emerging markets in developing countries due to their rapid economic growth, large populations, and increasing consumer spending power.

Question 4

Efforts to exploit the competitive advantage of specialised products across international markets are more important to small businesses than to their large competitors.

Accepted Answer

Small businesses often rely on niche products or services to differentiate themselves from larger competitors, making it essential for them to establish a competitive advantage for those specialized products in international markets. Large businesses, on the other hand, may have a broader range of offerings and can rely on economies of scale to compete in international markets.

Question 5

The SA Chamber of Commerce and Industry provides information for entrepreneurs considering global operations.

Accepted Answer

The answer of The SA Chamber of Commerce and Industry...

Question 6

A production capacity question that needs to be answered before a company goes global with operations is "Will international sales hurt domestic sales?"

Accepted Answer

Before going global with operations, a company needs to consider whether international sales will harm its domestic sales. This is because expanding into international operations may divert resources and attention away from the domestic market, potentially causing a decline in sales or market share. Additionally, international expansion may lead to increased competition or pricing pressures, which could also affect domestic sales. Therefore, it is crucial to determine whether the benefits of international expansion outweigh the potential risks to the domestic market.

Question 7

The term BRICs refers to Bangladesh, Romania, Ireland and Czechoslovakia, all emerging markets.

Accepted Answer

The term BRICs refers to Brazil, Russia, India, and China, all emerging markets. Bangladesh, Romania, Ireland, and Czechoslovakia are not included in this grouping.

Question 8

The primary motivation for expansion into European markets is to be closer to sources of raw materials.

Accepted Answer

The primary motivation for expansion into European markets can vary, but it often includes gaining access to new customers, increasing brand recognition, and taking advantage of favorable trade agreements or economic conditions. While some businesses may locate closer to sources of raw materials, this is not the main motivation for most expansion efforts.

Question 9

Once a small business owner decides to expand internationally, s/he should study the competitive forces in the foreign market.

Accepted Answer

The answer of Once a small business owner decides to...

Question 10

Together, China and India account for more than 50 per cent of the world's 6 billion inhabitants.

Accepted Answer

As of my last update in 2023, the world population exceeds 7.5 billion, and while China and India are the two most populous countries, together they account for less than 50% of the global population.

Question 11

The South African Council on International Relations can assist a company in trade laws and payment issues related to global markets.

Accepted Answer

The South African Council on International Relations primarily focuses on diplomatic and international relations rather than providing assistance with trade laws and payment issues for companies.

Question 12

Born-global businesses are small companies that begin with cross-border businesses around the globe.

Accepted Answer

The answer of Born-global businesses are small companies that begin...

Question 13

Products that sell at home usually require little or no adaptation to be well received in foreign markets.

Accepted Answer

The answer of Products that sell at home usually require...

Question 14

10 per cent of the world's population lives in South Africa.

Accepted Answer

According to the United Nations, as of 2021, South Africa's population is approximately 59 million, which is less than one percent of the world's population. Therefore, 10 percent of the world's population does not live in South Africa.

Question 15

Entrepreneurs decide to go global to expand their opportunities, but sometimes they are forced to enter foreign markets to compete with businesses that have already done so.

Accepted Answer

Entrepreneurs often go global to expand their opportunities, but they may also be forced to enter foreign markets to compete with businesses that have already established a presence there.

Question 16

Globalisation explains the increasing similarity of markets around the world.

Accepted Answer

Globalisation has led to the removal of trade barriers, faster communication, and the growth of multinational corporations, resulting in more homogenous markets and products worldwide.

Question 17

Experience curve efficiencies refer to the savings that arise from repeated production of the same product.

Accepted Answer

Experience curve efficiencies are real savings that arise from doing the same task again and again. These savings can arise from various factors such as increased skills, improved processes, better equipment, and more efficient use of inputs. As production volume increases, experience curve efficiencies typically lead to lower costs per unit, and thus contribute to a company's competitive advantage.

Question 18

International dissimilarities in language and culture, business practices and government regulations are increasing over time.

Accepted Answer

International dissimilarities in these areas are not necessarily increasing; instead, globalization has led to more standardization in business practices and increased cultural exchange, although differences certainly remain significant.

Question 19

Increasing sales in international markets is one of many ways to recoup a business's investments in research and development.

Accepted Answer

The answer of Increasing sales in international markets is one...

Question 20

By informing consumers about the lifestyles of others, globalisation is leading toward more diverse consumer preferences.

Accepted Answer

Globalization often leads to more homogenized consumer preferences as people around the world are exposed to similar products and lifestyles, leading to a convergence in tastes and preferences.

Quiz 18: Global Opportunities for Small Business