Small Business Internationalization

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Questions and Answers

What is the main challenge faced by small businesses in market screening?

Difficulty in establishing external relationships

Limited understanding of potential markets

Inability to react to changes in the external environment

Lack of financial resources to gather data (correct)

Which of the following is NOT a viable international market entry strategy for small businesses?

Contract manufacturing

Direct exporting (correct)

Indirect exporting

Joint ventures

What is the main challenge for small businesses in market screening?

Lack of external relationships

Insufficient data analysis skills

Limited financial resources (correct)

Inability to analyze the external environment

What is indirect exporting?

Using intermediaries to sell products in foreign markets Signup and view all the answers

What is contract manufacturing?

Outsourcing production to a foreign manufacturer Signup and view all the answers

What is the potential outcome of entering a new market with the right approach and strategy?

Significant market share and revenue Signup and view all the answers

What is a joint venture?

Contributing capital and resources to a common project with other businesses Signup and view all the answers

What is the advantage of using indirect exporting as an international market entry strategy for small businesses?

It is less risky and resource-intensive than direct exporting Signup and view all the answers

What is the disadvantage of using indirect exporting as an international market entry strategy for small businesses?

They may lose control Signup and view all the answers

What is the advantage of using contract manufacturing as an international market entry strategy for small businesses?

It is cost-effective Signup and view all the answers

What is required for the eclectic paradigm of international production to be effective?

Ownership-specific, location-specific, and internationalization-specific advantages must be evenly balanced Signup and view all the answers

What is the disadvantage of using contract manufacturing as an international market entry strategy for small businesses?

The advantages may vary based on the industry and market Signup and view all the answers

What is the advantage of using joint ventures as an international market entry strategy for small businesses?

It provides access to local experience and management skills Signup and view all the answers

What are some features of successful international markets?

High innovation, niche markets and differentiation, and highly differentiated products Signup and view all the answers

Study Notes

The study discusses internationalization strategies for small businesses with limited resources.
Market screening involves analyzing potential markets and is challenging for small businesses.
Small businesses often lack the means to gather data for thorough market analysis.
Market selection is often a reaction to the external environment and existing relationships.
Market screening models for small businesses exist but require costly data.
The study aims to develop a model that requires no monetary resources for market analysis.
The model will help small businesses find markets with the best potential for success.
The focus is on internationalization of small businesses.
The model will alter existing market penetration methods.
The study's goal is to help small businesses with limited resources go international.

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Description

Looking to expand your small business internationally but don't have the resources for thorough market analysis? This quiz is for you! Learn about innovative market screening models and strategies specifically designed for small businesses with limited resources. Discover how to select the best potential markets and alter existing market penetration methods to achieve success. Join us in exploring the exciting world of internationalization for small businesses.