New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Ch. 15 Global Aspects of Entrepreneurship

by: Alora Lornklang

Ch. 15 Global Aspects of Entrepreneurship MGMT 3850

Marketplace > University of North Texas > Entrepreneurship > MGMT 3850 > Ch 15 Global Aspects of Entrepreneurship
Alora Lornklang
GPA 3.5

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

These notes will cover the learning objectives and vocabulary for Ch. 15 of the textbook.
Foundations of Entrepreneurship
Brandi Everett
Class Notes
25 ?




Popular in Foundations of Entrepreneurship

Popular in Entrepreneurship

This 3 page Class Notes was uploaded by Alora Lornklang on Sunday May 1, 2016. The Class Notes belongs to MGMT 3850 at University of North Texas taught by Brandi Everett in Spring 2016. Since its upload, it has received 17 views. For similar materials see Foundations of Entrepreneurship in Entrepreneurship at University of North Texas.

Similar to MGMT 3850 at UNT

Popular in Entrepreneurship


Reviews for Ch. 15 Global Aspects of Entrepreneurship


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 05/01/16
MGMT 3850 Foundations of Entrepreneurship Ch. 15 Global Aspects of Entrepreneurship 1. Explain why “going global” has become an integral part of many small companies’  marketing strategies.   Companies that move into international business can reap many benefits,  including offsetting sales declines in the domestic market; increasing sales and  profits; extending their products’ life cycles; lowering manufacturing costs;  improving competitive position; raising quality levels; and becoming more  customer oriented 2. Describe the principal strategies small businesses have for going global.  Create a website  Trade intermediaries, such as EMCs, ETCs, MEAs, export merchants, resident  buying offices, and foreign distributors, can serve as a small company’s “export  department”  In a domestic joint venture, two or more U.S. small companies form an alliance  for the purpose of exporting their goods and services abroad. In a foreign joint  venture, a domestic small business forms an alliance with a company in the target  area.   Some small businesses enter foreign markets by licensing businesses in other  nations to use their patents, trademarks, copyrights, technology, processes, or  products.   Franchising has become a major export industry for the US. Franchisers that enter foreign markets rely on 3 strategies o Direct franchising  o Area development  o Master franchising   Some countries lack a hard currency that is convertible into other currencies, so  companies doing business there must rely on countertrading or bartering. A  countertrade is a transaction in which a business selling goods in a foreign  country agrees to promote investment and trade in that country. Bartering  involves trading goods and services for other goods and services.   Once established in international markets, some small businesses set up  permanent locations there. Although they can be very expensive to establish and  maintain, international locations give businesses the opportunity to stay in close  contact with their international customers  Many small companies shop the world for the goods and services they sell. The  intensity of price competition has made importing and outsourcing successful  strategies for many small businesses.   Some entrepreneurs choose to exploit opportunities in foreign markets by moving  to those countries and becoming expert entrepreneurs.  3. Discuss the major barriers to international trade and their impact on the global  economy.   Three domestic barriers to international trade are common: the attitude that  “we’re too small to export,” lack of information on how to get started in global  trade and a lack of available financing  International barriers include tariffs, quotas, embargoes, dumping, and political,  business, and cultural barriers.  4. Describe the trade agreements that will have the greatest influence on foreign trade in  twenty­first century.   The WTO was established in 1995 to implement the rules established by the  Uruguay Round negotiations of GATT from 1986 to 1994, and it continues to  negotiate additional trade agreements. The WTO has 160 member nations and  represents more than 97 percent of all global trade. The WTO is the governing  body that resolves trade disputes among members.   NAFTA created a free trade area among Canada, Mexico, and the US. The  agreement created an association that knocked down trade barriers, both tariff and nontariff, among the partner nations.   CAFTA­DR created a free trade area among the United States and six nations in  Central America: Costa Rica, El Salvador, Guatemala, Honduras, the Dominican  Republic, and Nicaragua. In addition, to reducing tariffs among these nations,  CAFTA protects U.S. companies’ investments and intellectual property in the  region, simplifies the export process for U.S. companies, and provides easier  access to Central American markets.  Vocabulary  Trade intermediaries  o Domestic agencies that serve as distributors in foreign countries for  domestic companies of all sizes  Export management companies (EMCs) o Merchant intermediaries that provide small businesses with low­cost,  efficient, off­site international marketing department  Export trading companies (ETCs) o Businesses that buy and sell products in a number of countries and offer a  wide variety of import and export services to their clients  Manufacturer’s export agents (MEA) o Businesses that act as international sales representatives in a limited  number of markets for noncompeting domestic companies  Export merchants o Domestic wholesalers who do business in foreign markets  Resident buying office  o Government­or privately owned operations of one country established in  another country for the purpose of buying goods made there.   Letter of Credit  o An agreement between an exporter’s bank and the foreign buyer’s bank  that guarantees payment to the exporter for a specific shipmetn of goods  Bank Draft o A document the seller draws on the buyer, requiring the buyer to pay the  face amount either on sight or on a specified date  Expat Entrepreneurs o Entrepreneurs who keep their citizenship in their home country but live  and run their businesses on foreign soil.   Tariff o A tax, or duty, that a government imposes on goods and services imported  into that country.   Quota o A limit on the amount of a product imported into a country  Embargo o A total ban on imports of certain products into a country  Dumping o Selling large quantities of goods at prices that are below cost in foreign  countries in an effort to grab market share quickly.  Culture o The beliefs, values, views, and mores that a nation’s inhabitants share


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Anthony Lee UC Santa Barbara

"I bought an awesome study guide, which helped me get an A in my Math 34B class this quarter!"

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.