BUSMHR 2500 Identifying and Analyzing Domestic and Intl Opportunities

Identify the true statements about the influence of political philosophy on businesses. (Check all that apply.) It has an impact on the number of foreign businesses that are allowed to function in a country. A country's philosophy only affects the role it plays in embargoes, trade sanctions, and export controls. A country's philosophy affects the extent to which profits can be moved across nations. It lacks any impact on how businesses gain market entry into a country.

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Which of the following statements are true of the first major section of an opportunity assessment plan that is created by an entrepreneur? (Check all that apply.) It discusses and develops the product or service idea. Its objective is to determine the date for the launch of the venture. It analyzes the competitive products and companies. It identifies the uniqueness of the product or service idea in terms of its unique selling propositions. It has a proforma financial statement.

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5 step approach

1. develop appropriate indicators 2. collect data and convert into comparable indicators 3. establish an appropriate weight for each indicator 4. analyze the data 5. select the appropriate market from the marketing rankings

How does an entrepreneur select a good partner in an international market?

By gathering as much data as possible on potential partners

Accurate statement about the effects of the methods of enacting public policy on business

Entrepreneurs should understand that court verdicts can also have the effect of law.

Identify an accurate statement about the effects of the methods of enacting public policy on business.

Entrepreneurs should understand that court verdicts can also have the effect of law.

True or false: Aesthetics has implications with only gift giving.

False

True or false: International entrepreneurship does not consist of exporting and licensing a sales office in another country.

False

True or false: The political and the economic philosophy of a country has no impact on an entrepreneur's decision on market entry and how to conduct business transactions.

False

True or false: Trade barriers typically decrease an entrepreneur's costs of exporting products or semifinished products to a country.

False

The multilateral agreement with the objective of liberalizing trade by eliminating or reducing tariffs, subsidies, and import quotas is the _____.

General Agreement on Tariffs and Trade

Which of the following is true of a minority interest?

It can supply a company with a steady source of raw materials.

True statement about the SECOND major section of an opportunity assessment plan

It focuses on the growth rate of the market.

Identify an accurate statement about aesthetics.

It has implications for gift giving, product packaging, and office design.

Which of the following is true of social structure?

It influences the purchasing patterns of individuals.

Which of the following is true of language?

It is often thought of as the mirror of a country or region's culture. ALSO nonverbal language of a culture is as important as verbal language

_____ normally involves an entrepreneur, who is a manufacturer, giving a foreign manufacturer the right to use a patent, trademark, technology, production process, or product in return for the payment of a royalty.

Licensing

Which of the following is true of the strategic effects of a company going global?

Psychological closeness to a country will allow the company to conduct its business more easily in the country.

Identify the major factors that are most likely to define or have an impact on business as identified by Francis J. Aguilar. (Check all that apply.)

Social Political Economic Technical

What are the motivations that are most likely to lead to companies going global with their products and services? (Check all that apply.)

Tax benefits Technological superiority Profits Unique market chance

Identify the constituent countries of the North American Free Trade Agreement (NAFTA). (Check all that apply.)

The United States Canada Mexico

Identify an accurate statement about companies that go global.

The expenses borne by companies that go global usually have an adverse impact on profits.

Which of the following factors should be considered by an entrepreneur when determining the best channel of distribution in a country? (Check all that apply.)

The overall marketing plan The cost of a service or product The amount and kind of competition The overall sales potential

True or false: Entrepreneurs are recommended to gain entry to a foreign market by partnering up with an entrepreneur from that particular market.

True

When is a licensing agreement most appropriate?

When an entrepreneur has no desire to enter a market through exporting or direct investment

Identify the situations in which joint ventures are most often utilized by entrepreneurs. (Check all that apply.)

When swift entry into a market is necessary When an entrepreneur seeks to buy knowledge and an already set-up manufacturing facility

Psychographics primarily help an entrepreneur _____.

build a target consumer profile

Entrepreneurs are educators. Hence, before presenting a new product or commodity in a foreign market or country, entrepreneurs must _____.

comprehend how both informal and formal learning influence the country

A country's _____ is the difference between the value of a country's imports and exports over time and it affects the valuation of its currency and its monetary policy.

current account

A conglomerate merger that involves the consolidation of two essentially unrelated firms is known as a _____ merger.

diversified activity

Allied Breweries Ltd., a growing beer company in the United States, was acquired by social media giant Linkbook due to its vast growth potential and quality. This type of merger is most likely to have been a _____ merger.

diversified activity

An accurate statement about social structure and institutions is that _____.

economic class can have a tremendous impact on the way people from one social strata behave

The most widespread reason for mergers is probably _____.

economies of scale

True or false: The majority interest does not permit an entrepreneur to gain managerial powers.

false

Companies commonly merge to obtain mutually beneficial complementary resources.

faxx

Lorenzo is the CEO of an electronics company that is based in California. Currently, his company only sells its products in North America. He seeks to establish a global base in Europe and Asia. While selecting the appropriate market to invest in initially, Lorenzo must _____.

first determine the overall market size and growth indicators of a potential market

A _____ merger is the combination of two firms that produce one or more of the same or closely related products in the same geographic area.

hortizontal

two types of exporting

indirect and direct

Monetary policy of a country refers to _____.

interest and exchange rates, which in turn impacts inflation

In the context of the various factors that affect businesses, psychographics refer to _____.

interests, activities, and opinions and help explain what consumers value and how they make their choices

The process of an entrepreneur conducting business activities across national boundaries is known as _ _.

international entrepreneurship

Culture

is a learned behavior that encompasses a wide variety of elements, including language, social structure, religion, economic and political philosophy, education, manners and customs, and aesthetics.

A true statement about psychological distance is that _____.

it is beneficial for companies to first do business in psychologically close countries before moving to psychologically distant nations

A characteristic of a horizontal merger is that _____.

it is motivated by economies of scale in marketing, production, or sales

A characteristic of culture is that _____.

it is the identity of a person and society

An accurate statement about the PEST analysis is that _____.

it is valuable when exploring new international business opportunities

An accurate statement about a vertical merger is that _____.

it tends to stabilize supply and production and gives firms greater control over these aspects

A feature of the General Agreement on Tariffs and Trade (GATT) is that _____.

its voluntary membership means it has limited authority to enforce unrestricted trade

The joining of two firms in order to form a third company in which the equity is shared is known as a(n) .

joint venture

The purchase of over 50 percent of the equity in a foreign business is known as

majority interest

Identify the different types of nonequity arrangements. (Check all that apply.)

management contracts, licensing, turn-key projects

A form of direct foreign investment in which an investing entrepreneur holds a minority ownership position in a foreign venture is known as a(n)

minority interest

A form of direct foreign investment in which an investing entrepreneur holds a minority ownership position in a foreign venture is known as a(n) .

minority interests

A method by which an entrepreneur can enter a market and obtain sales and profits without direct equity investment in the foreign market is known as a(n)

non-equity arrangements

When an entrepreneur seeks to launch a new commodity or good in a new market, the entrepreneur should _____.

recognize the amount of emphasis the culture places on certain skills or career paths

The second major section of an opportunity assessment plan focuses on _____.

the features and trends of the market

The first major section of an opportunity assessment plan created by an entrepreneur focuses on _____.

the market requirement for the product

A difference between an opportunity assessment plan and a business plan is that _____.

the opportunity assessment plan is used to decide if a company should act on an idea

A true statement about distribution channels is that _____.

they are critical and crucial to the success of a company in a foreign market

Factors that create issues for entrepreneurs by hindering international business are known as .

trade barriers

A _____ merger is the combination of two or more firms in successive stages of production that often involve a buyer-seller relationship.

vertical