ENTREPRENEURSHIP AND THE GLOBAL ECONOMY
CULTURAL DIFFERENCES AND ENTREPRENEURSHIP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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There is less of a focus on quality and more of a focus on price internationally
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It makes companies more customer-focused.
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It is largely the domain of small businesses due to their flexibility.
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It tends to shorten the life cycle of a product or service.
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Detailed explanation-1: -Exporting is a typically the easiest way to enter an international market, and therefore most firms begin their international expansion using this model of entry.
Detailed explanation-2: -There are five basic options available: (1) exporting, (2) creating a wholly owned subsidiary, (3) franchising, (4) licensing, and (5) creating a joint venture or strategic alliance (Figure 7.25 “Market entry options”).
Detailed explanation-3: -Which of the following are considered major hurdles to successful global trade? Exchange rates and labor costs both affect trading in global markets.
Detailed explanation-4: -exporting. licensing or franchising to a company in the host nation. establishing a joint venture with a local company. establishing a new wholly owned subsidiary. acquiring an established enterprise.