Question 1

These days, the rival on the other side of the street from a firm may be a minor threat compared to an online competitor on the other side of the globe.

Accepted Answer

With the rise of e-commerce and digitalization, businesses now face competition not just from local rivals but from online competitors across the world. Online shopping and online services have made it easier for businesses to reach customers in different parts of the world, which has led to increased competition.

Question 2

Experience curve efficiencies refers to the savings that arise from spreading activity across more units of output and from acquiring more specialize plants, equipment, and employees.

Accepted Answer

Experience curve efficiencies refer to cost reductions that occur as a company gains experience in production, leading to improved processes and efficiencies, not just from spreading activity or acquiring specialized resources.

Question 3

Most small firms choose to go global first by exporting.

Accepted Answer

Exporting is often the first step for small firms to enter the global market because it allows them to test the waters and minimize the costs and risks associated with setting up operations in foreign countries.

Question 4

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

Accepted Answer

Small businesses often rely on niche markets and specialized products to differentiate themselves from larger competitors, and these advantages can be more important when expanding into international markets where there may be less competition or demand for unique products. Large competitors may have more resources to invest in developing new products or adapting to local markets, making the competitive advantage of specialized products less relevant for them.

Question 5

In the past, firms tended to introduce new products in the United States first and then sell them in other developed nations, giving no attention to less-advanced countries because of their weak consumer purchasing power.

Accepted Answer

The answer of In the past, firms tended to introduce...

Question 6

The unique features of a local environment can yield benefits to small firms locating there.

Accepted Answer

Local environments can offer small firms access to unique resources, such as skilled workers or specialized suppliers, as well as potential partnerships and collaborations with other businesses in the area. These benefits can enhance the competitiveness and success of small firms.

Question 7

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 8

Increasingly, small firms are going global in search of skilled labor.

Accepted Answer

With advancements in technology and communication, small firms are now able to access global talent pools and are going global to find skilled workers. This is particularly prevalent in industries such as technology and creative services, where a skilled workforce is a major factor in business success.

Question 9

Startups that are based on complex technologies are more likely to gain benefits from learning effects and economies of scale.

Accepted Answer

Startups that are based on complex technologies are more likely to gain benefits from learning effects and economies of scale, as they can improve their processes, reduce costs, and increase efficiency through repeated use and mass production.

Question 10

Learning effects are the direct result of economies of scale in operations.

Accepted Answer

Learning effects refer to the improvement in efficiency and productivity that comes from experience and increased knowledge. Economies of scale, on the other hand, refer to the cost advantages that come from increasing the scale of production, such as lower per-unit costs of raw materials or overhead expenses. While learning effects may contribute to economies of scale, they are not the same thing.

Question 11

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

Accepted Answer

Entrepreneurs may choose to go global in order to expand their opportunities and reach new markets, but they may also be forced to enter foreign markets if they face competition from firms that have already established a presence in those markets. This can be a strategic move to protect their market share and maintain competitiveness.

Question 12

The U.S. Department of Commerce publishes A Guide to Exporting, which outlines some of the important questions entrepreneurs should consider when deciding whether a firm is ready for the challenges of global business.

Accepted Answer

The statement is true. The U.S. Department of Commerce does publish A Guide to Exporting, which contains valuable information for entrepreneurs considering expanding their business internationally.

Question 13

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

Accepted Answer

International dissimilarities in language and culture, business practices, and government regulations are fading over time due to globalization, increased travel, and communication technologies.

Question 14

More than 75 percent of the world's population lives outside of the United States.

Accepted Answer

The answer of More than 75 percent of the world's...

Question 15

Products that sell at home usually require considerable adaptation to be well received in foreign markets.

Accepted Answer

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

Question 16

Internationalization is increasing among large firms, but this has not been the trend with small businesses in recent years.

Accepted Answer

Small businesses have also been increasingly engaging in internationalization due to advancements in technology, global e-commerce platforms, and easier access to international markets.

Question 17

Increasingly, small firms find that they must locate their operations abroad if they are to keep their contracts as suppliers to large companies.

Accepted Answer

This statement is true. As large companies expand their global reach, they often require their suppliers to have international operations in order to meet their needs. Small firms may need to locate their operations abroad in order to continue doing business with these large companies.

Question 18

The interest in international markets dates back at least as far as the 1200s when Marco Polo traveled to China to trade western goods for Oriental silk and spices.

Accepted Answer

This statement is true. Marco Polo's travels and trade with China occurred in the 1200s.

Question 19

Taken together, China and India account for nearly 30 percent of the world's 4 billion inhabitants.

Accepted Answer

As of the latest data, China and India together account for nearly 36% of the world's population, which is over 8 billion people, not 4 billion.

Question 20

IT Retail owner Martin Goodwin's decision to go global was because the american market was too small to ensure that he would recover development costs.

Accepted Answer

The statement mentions that the American market was too small to recover development costs, which suggests that Martin Goodwin needed to expand globally to maximize profits.

Quiz 18: Global Opportunities for Small Business