True/False
Indicate whether the
sentence or statement is true or false.
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1.
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Some businesses expand too slowly and have problems controlling their
growth.
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2.
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The condition of your business is one of the factors to consider in determining
when to expand.
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3.
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The economic climate that controls your business should be analyzed before you
make plans to expand.
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4.
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Your expansion plan should include strategies for increasing your
advertising.
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5.
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Market penetration and geographic relocation are two strategies that you can use
to increase your sales.
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6.
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A market penetration strategy might be to increase your advertising in order to
increase your market share.
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7.
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When you diversify with new products or services, you will have to allocate a
large amount of capital before you know for sure if the new products or services will be
profitable.
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8.
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Products and services that are produced in one country and sent to another to be
sold are exports.
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9.
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Some businesses export indirectly by using commissioned agents, brokers who find
foreign buyers for products and services.
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10.
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Entrepreneurs import inexpensive products to sell in this country because
consumers are attracted by their quality.
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11.
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A benefit of getting involved in international trade is that you may be able to
rely more on markets and suppliers in the United States if the U.S. economy worsens.
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12.
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An advantage of doing business in a foreign country is that you will be able to
change your products or services to meet the needs of new markets.
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13.
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Trade fairs and seminars sponsored by the U.S. Department of Commerce can help
you learn about doing business abroad.
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14.
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Your international business plan should include information about how you plan
to deliver your products or services to foreign markets.
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15.
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Some governments, including the United States, establish trade barriers to keep
foreign businesses from competing with domestic producers.
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16.
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Every society has its own culture, but most cultures have similar
characteristics.
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17.
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To develop good business relationships with people from different cultures, an
entrepreneur should assume that all people from a particular cultural group behave the same
way.
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18.
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Learning about the cultures of countries in which you plan to do business is
important because culture affects how people do business.
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19.
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If you plan to do a lot of business in a particular part of the world, you
should hire someone who speaks the local language or learn it yourself.
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20.
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Most foreigners will be insulted if you do not use their first name in
conversation or correspondence.
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Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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21.
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Your plan for expansion should include your strategies for
a. | redirecting your advertising | c. | hiring managers and
supervisors | b. | assessing economic conditions | d. | all of these |
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22.
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Increasing market share for a product or service within a given area is
a. | geographic development | c. | market development | b. | geographic expansion | d. | market
penetration |
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23.
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A strategy for expanding your target market by diversifying with new products or
services is
a. | geographic development | c. | market development | b. | geographic expansion | d. | market
penetration |
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24.
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Determining when to expand your business depends on
a. | the condition of your business | c. | your products or
services | b. | the location of your business | d. | your fixed and variable
costs |
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25.
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Before you get involved in international trade, you should write a business plan
that indicates
a. | what your competition will be and why | c. | what legal requirements you will
need to meet to sell abroad | b. | who will manage your domestic
business | d. | when you plan to
begin exporting products |
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26.
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A limit on the amount of a product that can be imported into a country over a
particular period of time is a
a. | tariff | c. | restrictive tax | b. | qualitative restriction | d. | quota |
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27.
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Benefits of global competition include
a. | increased sales | c. | less dependence on current suppliers | b. | reduced
costs | d. | all of
these |
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28.
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Exporting via the World Wide Web is
a. | not cost-effective | c. | indirect exporting | b. | direct exporting | d. | not possible without commisssioned
agents |
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29.
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If you do business abroad, you will have to learn about the cutltres of the
countries in which you plan to do business because
a. | different cultures use different types of computer software | c. | different cultures
have different currencies | b. | culture makes businesses more
competitive | d. | culture affects
how people to business |
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30.
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As an entrepreneur, you need to appreciate different cultures for all of the
following reasons, except
a. | you will be able to market your business more effectively | c. | you may buy from
and sell to people from different cultures | b. | the United States is a multicultural
society | d. | people from
different cultures have the same needs and wants. |
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Matching
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a. | Commissioned agents | h. | Market development | b. | Culture | i. | Market penetration | c. | Direct
exporting | j. | Qualitative
restriction | d. | Exports | k. | Quota | e. | Geographic expansion | l. | Sales representative | f. | Imports | m. | Tarriff | g. | Indirect exporting | n. | Trade barriers |
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31.
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Strategy for expanding the target market of a business
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32.
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Tax on imports
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33.
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The set of customs, beliefs, and social attitudes that characterize a
particular group of people
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34.
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Products and services that are brought in from another country to be
sold
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35.
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Standard of quality an imported product must meet before it can be sold
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36.
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Exporting goods and services by finding foreign buyers or distributors and then
shipping products to them
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37.
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Methods for keeping foreign businesses from competing with domestic
producers
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38.
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Products and services that are produced in one country and sent to another to
be sold
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39.
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Increasing market share for a product or service within a given market in a
given area
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40.
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Limit on the amount of a product that can be imported into a country over a
particular period of time
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