Question 1

After identifying each of the four driving forces that encourage entrepreneurs to go global,discuss the change in traditional to emerging perspectives.

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Question 2

Dustin had contracts for web designs in Japan and France and therefore has decided to start a business.The company will be reaching an international market strictly through online operations.Based on this type of global business,what organizations could offer advice to make this business feasible?

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Question 3

What options do small businesses have when dealing with political risks globally?

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Question 4

When the exchange rate for a currency rises relative to that of another country,the rising currency

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When the exchange rate of a currency rises relative to another country's currency, it means that the currency has increased in value relative to the other currency. For example, if 1 USD can buy 1.3 CAD today, but tomorrow it can buy 1.4 CAD, it means that the exchange rate for USD has risen relative to CAD, and USD has become stronger.

Question 5

An intermediary that works for foreign firms that are interested in buying U.S.products and is paid a commission for its services is called a(n)_____.

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Question 6

Which government organization is an excellent source information about analyzing markets,financing and planning strategy?

Accepted Answer

The Small Business Administration (SBA) is a government organization that provides resources and support for small businesses, including market analysis, financing options, and strategic planning.

Question 7

Describe the role trade intermediaries play in assisting small businesses that choose to go global.Identify the types of trade intermediaries that are most useful to small businesses.

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Question 8

The Federation of International Trade Associations website is a source of trade

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Question 9

Once an exporter has shipped a product internationally and the title has been transferred,the exporter receives what is called a

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Once a product has been shipped internationally and the title has been transferred, the exporter receives a bill of lading which serves as a receipt for the goods shipped and evidence of the contract of carriage. An international invoice is issued prior to the shipment, a letter of confirmation confirms the details of the transaction, and a letter of credit is a payment mechanism used in international trade.

Question 10

Describe six strategies that a small firm can use to go global.

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Question 11

Nicole is the CEO of a small business which is looking to expand globally.She wants to move her business to a European country and feels that is where the product will be most profitable.What are three challenges that Nicole needs to analyze for the area in which she is considering expanding her company?

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Question 12

Which country would be the least challenging in its ease of doing business according to the World Bank's index?

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According to the World Bank's Doing Business 2020 report, Chile ranks highest among the given options in ease of doing business, at 59th out of 190 countries. Argentina ranks 126th, Egypt ranks 114th, and Madagascar ranks 161st.

Question 13

What are question topics that should be considered before going global specifically related to management objectives,management experience and resources,production capacity and financial capacity?

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Question 14

Polly has formed an agreement with a French company to produce and sell her scarves in their ten stores across Europe.The scarves are Polly's original designs and are of different colors and fabrics.They will then pay Polly a fee for each scarf they produce.What are the advantages and disadvantages of the globalization strategy Polly will be utilizing?

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Question 15

A small company can deal with changing currency rates by

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Stating contracts in US dollars can protect the small company from currency fluctuations as it eliminates the need to constantly convert between currencies. The company can have a fixed price in US dollars and avoid any potential losses due to changes in exchange rates. Locating plants in countries with advantageous exchange positions may not always be feasible or cost-effective for a small company. Limiting sales in each country may hurt the potential growth of the company, and following the advice of a single international sales manager may not necessarily ensure the best decision-making for the company.

Question 16

What are the differences and similarities of exporting and importing?

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Question 17

Coca-Cola leased land and built a bottling operation in Turkey This new facility is best described as

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Coca-Cola built a new facility on leased land, which is known as a greenfield venture. A cross-border acquisition would involve buying an existing facility in another country, an international transplant would involve moving an existing facility to another country, and a duplication strategy would involve replicating an existing facility in another location.

Question 18

Melanie's Marbles is a young company that buys unusual marbles from many places around the world.To provide assurance for her vendors that they will be paid,Melanies has established a ______________ at her bank.

Accepted Answer

A letter of credit is a document issued by a bank guaranteeing payment to a seller provided certain conditions are met. In this case, Melanie's Marbles is using a letter of credit to assure her vendors that they will be paid for their marbles.

Question 19

The risk that a new government regulation could damage business activity in a country is considered

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Political risk refers to the potential disruption or negative impact on an organization's operations and/or profitability due to changes in government policy, laws, or regulations. Thus, the risk of new government regulations damaging business activity fits the definition of political risk. Economic risk refers more broadly to the potential impact of economic factors such as inflation or recession on an organization's financial performance. Exchange rate risk refers specifically to the potential impact of fluctuations in currency exchange rates on an organization's international transactions. Global risk refers to a wide range of potential risks that can affect organizations operating in multiple countries or regions.

Question 20

From a company-owned plant in Pakistan,Howard manufactures specialty apparel items for his small business,Garments of Eden.Because of overseas operations of the U.S.military in the region,Howard fears that his plant may be sabotaged or that the local government may attempt to take over the facility.Specifically,his fears are about

Accepted Answer

Howard's fears revolve around the potential impact of political instability or government intervention in the region. This is an example of political risk, which refers to the potential for political events or actions to negatively impact a company's operations, profitability, or assets. Economic risk refers more broadly to the potential impact of broader economic conditions on a company's performance, while exchange rate risk specifically relates to the impact of foreign currency fluctuations on a company's finances. While these risks may also be present in this scenario, they are not the primary concerns identified by Howard.

Quiz 18: Global Opportunities for Small Business