Entrepreneurship Test Chapter 4

Multiple Choice
Identify the choice that best completes the statement or answers the question.

____ 1. One reason that the United States imports a vast number of goods from other countries is because of
a. shipping costs. c. unlimited resources.
b. relations with other countries. d. low labor costs.
____ 2. To find export opportunities, many entrepreneurs use the services of a(n)
a. shipping company. c. attorney.
b. export management company. d. broker.
____ 3. Two of the main reasons for the global economy are the changes in
a. technology and reduction in trade tariffs.
b. importing and currency.
c. trade barriers and technology.
d. cultures and trade barriers.
____ 4. Small business owners have the ability to meet and talk with foreign agents, distributors, or potential business
partners through
a. technology. c. foreign joint ventures.
b. business brokers. d. trade missions.
____ 5. Entrepreneurs who attempt to do business internationally
a. need to be more creative. c. need to understand the culture.
b. open a franchise. d. use the Internet.
____ 6. To be successful in the global market, you must be able to offer products or services
a. at high prices. c. that utilize technology.
b. at competitive prices. d. for children.
____ 7. It is important to study each country before attempting to do business there because of
a. cultural differences. c. the currency.
b. taxes. d. the economy.
____ 8. Taxes imposed by a government on imported or exported goods are called
a. ventures. c. trade barriers.
b. importing. d. tariffs.

Completion
Complete each statement.

9. Developing countries provide a risky form of ____________________ for entrepreneurs.

10. To participate in a trade mission, you will need to have a product that is on the government's
____________________ list.

11. Technology has made it easier to ____________________ with people in other countries.
 12. According to the U.S. Department of Commerce, the hottest products for exporting are electronic equipment,
chemical products, paper products, apparel, industrial machinery, computers, and ____________________
products.

13. A(n) ____________________ is a partnership created by two or more companies for a specific purpose over a
set period of time.

14. Businesses that buy goods from other countries to sell in their own country are ____________________.

15. It is wise to hire a(n) ____________________ to translate the other person's language into English when
conducting business in a foreign country.

16. The important thing for entrepreneurs to understand about Europe is that ____________________ among
some countries are huge.

Matching

Match each item with the correct statement below.

a. global economy e. Gross Domestic Product (GDP)
b. IBEX f. disposable income
c. freight forwarder g. trade barriers
d. SITC codes h. exporting
____ 17. classifying goods sold in the international market
____ 18. money to spend after necessary expenses are paid
____ 19. the selling and shipping of products to another country
____ 20. the interconnected economies of the nations of the world
____ 21. taxes, quotas, and other restrictions on goods entering or leaving a country
____ 22. the total value of all goods produced during the year
____ 23. the electronic commerce systems that allow you to sell products and services online anywhere in the world
____ 24. handles overseas shipments for a fee

Short Answer

Write a 100-word paragraph that answers the following:

25. Discuss at least four ways to show respect to people of different cultures when conducting business in another
country.
Entrepreneurship Test Chapter 4
Answer Section

MULTIPLE CHOICE

1. ANS: D PTS: 1
2. ANS: B PTS: 1
3. ANS: C PTS: 1
4. ANS: D PTS: 1
5. ANS: C PTS: 1
6. ANS: B PTS: 1
7. ANS: A PTS: 1
8. ANS: D PTS: 1

COMPLETION

9. ANS: opportunity

PTS: 1
10. ANS: best prospect

PTS: 1
11. ANS: communicate

PTS: 1
12. ANS: agricultural

PTS: 1
13. ANS: foreign joint venture

PTS: 1
14. ANS: importing

PTS: 1
15. ANS: interpreter

PTS: 1
16. ANS: cultural differences

PTS: 1

MATCHING

17. ANS: D PTS: 1

18. ANS: F PTS: 1
19. ANS: H PTS: 1
 20. ANS: A PTS: 1
21. ANS: G PTS: 1
22. ANS: E PTS: 1
23. ANS: B PTS: 1
24. ANS: C PTS: 1

SHORT ANSWER

25. ANS:
Answers will vary but should include the following ideas:
Dress conservatively in dark colors.
Do not correct the other person’s English.
Be prepared to remove your shoes in some situations.
Do not comment on food except to praise it.
Do your homework before the first meeting.
Build a relationship before you do business.
Bring your own interpreter.

PTS: 1