Question 1

Match the term with its definition. Some terms may not be used.
-A document indicating that a product has been shipped and the title to that product has been transferred

Accepted Answer

A bill of lading is a document that serves as proof that a product has been shipped and title to the product has been transferred from one party to another.

Answer: B
 Born-global firms are businesses that start operating internationally from their inception and do not follow the traditional model of starting locally then expanding globally.

Answer: C
 Counterfeit activity refers to the production or sale of fake or imitation products that are marketed as genuine.

Answer: D
 Economic risk is the risk of financial loss or uncertainty caused by changes in economic conditions, such as inflation, exchange rates, or interest rates.

Answer: E
 Economies of scale refer to the cost savings that a business can achieve by increasing its production and reducing its average cost per unit.

Answer: F
 An exchange rate is the value of one currency in relation to another, and it can fluctuate based on various economic factors and events.

Answer: G
 A letter of credit is a financial instrument used to guarantee payment between parties in international trade transactions.

Answer: H
 Offshoring refers to the practice of a business moving its operations to another country in order to take advantage of lower labor costs or other favorable conditions.

Answer: I
 Political risk is the risk of financial loss or uncertainty caused by changes in government policies, regulations, or instability in a country's political climate.

Answer: J
 Royalties are payments made by one party to another for the use of intellectual property, such as patents, trademarks, or copyrights.

Question 2

Match the term with its definition. Some terms may not be used.
-Efficiencies that result from expansion of production

Accepted Answer

Economies of scale refers to the cost advantages that a firm can achieve by expanding its production. As the volume of output increases, the cost per unit of output decreases, leading to efficiencies that result from expansion of production.

Answer: G
 A letter of credit is a document issued by a financial institution, usually a bank, that guarantees payment to a seller provided that certain conditions are met. It is often used in international trade to minimize the risk of non-payment by the buyer.

Answer: H
 Offshoring refers to the practice of relocating some of a firm's business activities to a foreign location in order to take advantage of lower costs or other benefits. It often involves outsourcing production or services to a third-party provider in another country.

Answer: I
 Political risk refers to the risk of loss or damage to a firm's business activities due to political factors such as changes in government policy, legal or regulatory developments, or political unrest.

Answer: J
 Royalties refer to payments made to the owner of intellectual property rights for the use of those rights by another party, typically in the form of a percentage of revenue or profits generated by the use of the intellectual property. They are commonly used in licensing agreements for trademarks, patents, or copyrights. The other terms listed are not matched with their respective definitions.

Question 3

Match the term with its definition. Some terms may not be used.
-A combination of efforts and/or assets of companies in different countries for the sake of pooling resources and sharing risks

Accepted Answer

International strategic alliance is a combination of efforts and/or assets of companies in different countries for the sake of pooling resources and sharing risks.

Answer: B 
 Experience curve efficiencies refer to the production cost advantages that result from a company's ability to leverage its experience in producing a particular product or service.

Answer: C 
 Foreign licensing is an agreement in which one company grants another company the right to use its intellectual property (e.g. patents, trademarks, copyrights) in a foreign market.

Answer: D 
 International franchising is a business model in which a company (the franchisor) grants the right to use its brand, products, and systems to another company or individual (the franchisee) in a foreign market.

Answer: E 
 International outsourcing refers to the practice of hiring a company or individual outside of one's home country to perform a business function.

Answer: A, G 
 Economic risk refers to the potential financial loss that can result from changes in the economic environment of a country or region, such as inflation or political instability. Learning effects refer to the cost advantages that result from a company's ability to learn how to produce a product more efficiently over time.

Answer: H 
 A licensee is a company or individual who is granted the right to use another company's intellectual property (such as patents or trademarks) in exchange for payment.

Answer: I 
 A licensor is a company that grants another company or individual the right to use its intellectual property (such as patents or trademarks) in exchange for payment.

Question 4

Match the term with its definition. Some terms may not be used.
-A trip organized to help small business owners meet with potential foreign buyers and establish strategic alliances in an international market

Accepted Answer

A trade mission is a trip organized to help small business owners meet with potential foreign buyers and establish strategic alliances in an international market.

Question 5

Match the term with its definition. Some terms may not be used.
-Selling products produced in another country to buyers in the home country

Accepted Answer

Importing refers to the act of bringing products or services from another country into one's home country for sale.

Question 6

Match the term with its definition. Some terms may not be used.
-Allowing a company in another country to purchase the rights to manufacture and sell a company's products in international markets

Accepted Answer

Foreign licensing involves allowing a company in another country to purchase the rights to manufacture and sell a company's products in international markets.

Answer: D
 International franchising involves allowing a company in another country to purchase the rights to use a company's brand name and business model in international markets.

Answer: F
 International strategic alliance involves two or more companies from different countries joining together to pursue common business opportunities.

Answer: H
 A licensee is the company in another country that is granted the rights to manufacture and sell a company's products in international markets through licensing.

Answer: I
 A licensor is the company that grants the rights to manufacture and sell its products in international markets through licensing.

Not used: A) Economic risk, B) Experience curve efficiencies, E) International outsourcing, G) Learning effects.

Question 7

Match the term with its definition. Some terms may not be used.
-Selling products produced in the home country to customers in another country

Accepted Answer

Exporting refers to the selling of products produced in the home country to customers in another country.

Question 8

Match the term with its definition. Some terms may not be used.
-The company selling licensing rights

Accepted Answer

Licensor is the company selling licensing rights.

Answer: H
 Licensee is the company buying licensing rights.

Answer: C
 Foreign licensing refers to selling licensing rights in a foreign country.

Answer: D
 International franchising involves a company selling the rights to use its business model and brand in a foreign country.

Answer: E
 International outsourcing involves a company contracting a foreign firm to perform services or produce goods instead of doing it in-house.

Answer: F
 International strategic alliance is a partnership between two or more companies from different countries to achieve a mutual goal.

Answer: B
 Experience curve efficiencies refer to cost savings that result from increased efficiency through cumulative experience.

Answer: A
 Economic risk refers to the risk of financial losses due to changes in economic conditions, such as exchange rates, interest rates, or inflation.

Not used: G (Learning effects are similar to experience curve efficiencies but usually refer to the individual and not the company.)

Question 9

Match the term with its definition. Some terms may not be used.
-Insights gained from experience that lead to improved work performance

Accepted Answer

Learning effects refer to the insights gained from experience that lead to improved work performance.

Question 10

Match the term with its definition. Some terms may not be used.
-The unauthorized use of a company's intellectual property or manufacture of its products

Accepted Answer

Counterfeit activity refers to the unauthorized use of a company's intellectual property or manufacture of its products.

Answer: D 
 Economic risk refers to the potential for financial loss due to fluctuations in exchange rates, interest rates, or other economic factors.

Answer: E 
 Economies of scale refer to the cost advantages that a company can achieve by increasing production levels, such as lower unit costs.

Answer: F 
 An exchange rate is the value of one currency in relation to another currency.

Answer: G 
 A letter of credit is a financial instrument that guarantees payment by a buyer for goods or services, provided that certain conditions are met.

Answer: H 
 Offshoring refers to the practice of outsourcing business processes or services to companies located in other countries.

Answer: I 
 Political risk refers to the potential for financial loss due to political instability, such as changes in government policies or regulations.

Answer: J 
 Royalties are payments made by one party to another for the use of intellectual property or other assets.

Terms not used: A) Bill of lading, B) Born-global firms.

Question 11

Match the term with its definition. Some terms may not be used.
-The company buying licensing rights

Accepted Answer

The answer of Match the term with its definition. Some...

Question 12

Match the term with its definition. Some terms may not be used.
-A strategy that involved relocating operations abroad

Accepted Answer

Offshoring involves relocating operations abroad.

Question 13

Match the term with its definition. Some terms may not be used.
-Selling a standard package of products, systems, and management services to a company in another country

Accepted Answer

International franchising involves selling a standard package of products, systems, and management services to a company in another country.

Answer: C
 Foreign licensing refers to the process of allowing a company in another country to use your intellectual property (such as patents or trademarks) in exchange for royalties.

Answer: E
 International outsourcing involves contracting with a company in another country to perform certain business functions or manufacturing processes.

Answer: F
 An international strategic alliance is a partnership between two or more companies from different countries, formed to pursue mutual interests or achieve a specific goal.

Answer: A, G
 Economic risk and learning effects are not specifically related to any of the given terms, and could potentially apply to various aspects of international business.

Question 14

A group of four Kentucky business owners all in business in the international equine industry fly to Ireland to meet potential buyers. Describe what this group would be hoping to accomplish from the trip.

Accepted Answer

The answer of A group of four Kentucky business owners...

Question 15

Match the term with its definition. Some terms may not be used.
-The expansion of international business

Accepted Answer

Globalization refers to the increasing interconnectedness and interdependence of economies and cultures across the world, leading to the expansion of international business.

Answer: A
 Born-global firms are companies that start operating internationally from their inception, rather than expanding into international markets after establishing themselves domestically.

Answer: B
 Cross-border acquisition refers to a company from one country acquiring a company located in another country.

Answer: C
 Exporting refers to the sale of goods or services from one country to another.

Answer: E
 A greenfield venture is a foreign subsidiary that is established from scratch in the host country, rather than through acquisition or other means.

Answer: F
 Importing refers to the purchase of goods or services from another country.

Answer: G
 Offshoring refers to relocating business processes or services to another country, often to take advantage of lower labor costs.

Answer: H
 A trade intermediary is a third party that facilitates trade between buyers and sellers in different countries.

Answer: I
 A trade mission is a group of businesspeople who travel to another country to promote exports or explore business opportunities.

Question 16

Match the term with its definition. Some terms may not be used.
-A strategy that involves accessing foreign labor through contracts with independent providers

Accepted Answer

International outsourcing involves accessing foreign labor through contracts with independent providers.

Question 17

Match the term with its definition. Some terms may not be used.
-Per-unit savings gained from repeated production of the same product

Accepted Answer

Experience curve efficiencies refer to the per-unit savings gained from repeated production of the same product.

Question 18

Match the term with its definition. Some terms may not be used.
-A wholly owned subsidiary formed from scratch in another country

Accepted Answer

A greenfield venture is a completely new subsidiary established in a foreign country, typically through the construction of new facilities or the purchase of existing facilities for renovation and expansion.

Answer: B 
 Cross-border acquisition refers to a company expanding its operations by purchasing a company located in another country.

Answer: C 
 Exporting refers to the sale of goods or services produced in one country to another country.

Answer: D 
 Globalization refers to the integration of markets, economies, and cultures around the world.

Answer: G 
 Offshoring refers to the relocation of business processes or manufacturing to another country, often to take advantage of lower labor costs.

Answer: H 
 A trade intermediary is a company that acts as a go-between for businesses that want to import or export goods or services.

Answer: I 
 A trade mission is a visit by government officials or business leaders to another country to explore potential business opportunities and strengthen economic ties.

Question 19

Match the term with its definition. Some terms may not be used.
-An agency that distributes a company's products on a contract basis to customers in another country

Accepted Answer

Trade intermediary is an agency that distributes a company's products on a contract basis to customers in another country.

Answer: C
 Exporting refers to selling products or services produced in one country to customers located in a different country.

Answer: B
 Cross-border acquisition is a type of merger or acquisition in which a company from one country acquires or merges with a company located in another country.

Answer: E
 Greenfield venture refers to a foreign direct investment where a company builds operations from scratch in a foreign country.

Answer: G
 Offshoring refers to the practice of relocating business processes or services to another country, typically with lower labor costs.

Answer: A, D
 Born-global firms are companies that are international from their inception and serve a global market. Globalization refers to the process of the world becoming increasingly interconnected and interdependent.

Answer: F, I
 Importing refers to the act of bringing goods or services from one country into another. Trade mission refers to a diplomatic mission sent by a government to promote trade and investment between countries.

Question 20

Match the term with its definition. Some terms may not be used.
-The purchase by a business in one country of a company located in another country

Accepted Answer

Cross-border acquisition is defined as the purchase by a business in one country of a company located in another country.

Quiz 18: Global Opportunities for Small Business

Match the term with its definition. Some terms may not be used. -A document indicating that a product has been shipped and the title to that product has been transferred

Match the term with its definition. Some terms may not be used. -Efficiencies that result from expansion of production

Match the term with its definition. Some terms may not be used. -A combination of efforts and/or assets of companies in different countries for the sake of pooling resources and sharing risks

Match the term with its definition. Some terms may not be used. -A trip organized to help small business owners meet with potential foreign buyers and establish strategic alliances in an international market

Match the term with its definition. Some terms may not be used. -Selling products produced in another country to buyers in the home country

Match the term with its definition. Some terms may not be used. -Allowing a company in another country to purchase the rights to manufacture and sell a company's products in international markets

Match the term with its definition. Some terms may not be used. -Selling products produced in the home country to customers in another country

Match the term with its definition. Some terms may not be used. -The company selling licensing rights

Match the term with its definition. Some terms may not be used. -Insights gained from experience that lead to improved work performance

Match the term with its definition. Some terms may not be used. -The unauthorized use of a company's intellectual property or manufacture of its products

Match the term with its definition. Some terms may not be used. -The company buying licensing rights

Match the term with its definition. Some terms may not be used. -A strategy that involved relocating operations abroad

Match the term with its definition. Some terms may not be used. -Selling a standard package of products, systems, and management services to a company in another country

A group of four Kentucky business owners all in business in the international equine industry fly to Ireland to meet potential buyers. Describe what this group would be hoping to accomplish from the trip.

Match the term with its definition. Some terms may not be used. -The expansion of international business

Match the term with its definition. Some terms may not be used. -A strategy that involves accessing foreign labor through contracts with independent providers

Match the term with its definition. Some terms may not be used. -Per-unit savings gained from repeated production of the same product

Match the term with its definition. Some terms may not be used. -A wholly owned subsidiary formed from scratch in another country

Match the term with its definition. Some terms may not be used. -An agency that distributes a company's products on a contract basis to customers in another country

Match the term with its definition. Some terms may not be used. -The purchase by a business in one country of a company located in another country