IBS - Quiz Chapter 5 + 6

What are not one of the Five Entrepreneurial Strategies?

• Harvest and Exit

• Financing and Governance

• Internationalization

• Growth

A combination of innovative, proactive, and risk-seeking behavior that crosses national borders and is intended to create wealth in organizations is called:

• international entrepreneurship

• social entrepreneurship

• corporate entrepreneurship

• creative entrepreneurship

Advantages of an Initial Public Offering (IPO)?

• Diversification of shareholder base

• Demands of periodic reporting

• Subject to the whims of financial market

• Greater opportunity for future acquisitions

Entrepreneurial firms can also internationalize without venturing abroad, by

• exporting direct ly

• supplying foreign firms

• harvesting and exiting through sell-offs to foreign entrants

• exporting indirectly

Bargaining power of suppliers becomes too large, smaller entrepreneurial firms need to quickly cut down in size to deal with such suppliers

• True

• False

Liability of foreignness is inherent disadvantage foreign firms experience in host countries because of their outsider status. How many ways that it is manifested in?

• 3

• 2

• 4

• 1

Non-equity tend to reflect relatively smaller commitments to overseas markets. One example of non equity mode is:

• Joint Venture

• Wholly owned subsidiaries

• Export

• Foreign direct investment

One of the disadvantages in Direct exports is not:

• High transportation costs for bulky products

• Marketing distance from customers

• Trade barriers and protectionism

• Divergent goals and interests of partners

______ firms go to countries that have a strong demand for their products and services.

• Natural resource-seeking

• Market-seeking

• Efficiency-seeking

• Capability-seeking