PRE ACTIVITY: Global Aspects of Entrepreneurship

UNIT 7.
Global Aspects of Entrepreneurship
PRE ACTIVITY: Global Aspects of Entrepreneurship

Name: Jessa Mae L. Beboso Score: ________
Course/Section: BSED English 3-A Date: May 27, 2021
Task 1. True or False

Directions: Choose True if the statement is correct, and False if otherwise. Encircle
your answer.
1. The process of applying management concepts and techniques TRUE

in a multinational environment and adapting management
FALSE
practices to different economic, political and cultural
environments is called international management.
2. Multinational corporations can be defined as firms having TRUE
operations in more than one country, international sales and a FALSE
nationality mix of managers and owners
3. Nongovernmental organizations believe that everyone benefits FALSE
from globalization, as evidenced in lower prices, Desired Learning
TRUE
Outcomes greater availability of goods, better jobs and access to
technology.
4. NAFTA is a free trade agreement between the United States, FALSE
Canada and Mexico that has in essence removed all barriers to TRUE
trade and investment between the three nations
5. NAFTA is better integrated as a single market than the EU or TRUE
FALSE
the allied Asian countries
Task 2. Guide Questions

The following are guide questions that will help you focus and better
understand the essential content for the entire unit. After answering the questions,
you may create a discussion with your classmates through online learning
modalities.
1. Why must entrepreneurs learn to think globally?
 Entrepreneurs must learn to think globally to embrace innovation and
expand their business as well as to introduce their products
internationally and also to bring international products in our country
through import and export process. Also by thinking globally, local
entrepreneurs can be able to compete with international
entrepreneurs, they can adopt different types of strategies as well.
2. What advantages does going global offer a small business owner? What are
the potential risks?
 Small business can be able to advertise their products and services
globally and may become well know, by this, there would be an
increase in sales and profits.
3. Describe the various types of trade intermediaries that small business owners
can use. What functions do they perform?
 The trade intermediaries that small business owners can use are the
Export Management Companies (EMCs) which provide small businesses
a low-cost, efficient, independent international marketing and export
department, Export Trading Companies, these are businesses that buy
and sell products in a number of countries, and offers services such as
exporting, importing, shipping, storing, distributing, and others to their
clients. Another is Manufacturer’s Export Agents (MEAs) which act as
international sales representatives in a limited number of markets for
various non competing domestic companies, Export Merchants, these
are domestic wholesalers who do business in foreign markets. They
buy goods from many domestic manufacturers and then market them
in foreign markets, Foreign Distributors, this is where domestic small
companies export their products for marketing, distribution, and
service functions in the foreign country.
4. Describe the barriers businesses face when trying to conduct business

internationally. How can a small business owner overcome these obstacles?
 There are three common domestic barriers that a small business face
when trying to conduct business internationally, these are attitude,
information and financing. In order to overcome these obstacles,
businesses must be flexible, willing to make adjustments to their
products, and services and try any other marketing strategies that may
be more effective than the old one. For international barriers, there are
types of barriers, these are tariff which includes tax or duty that the
government imposes on goods and services that are imported into the
country and nontariff which includes quota or embargo.
5. What impact have the WTO, NAFTA, and CAFTA trade agreements had on
small companies that want to go global? What provisions are included in
these trade agreements?
 WTO or World Trade Organization is the only international organization
that establish rules for trade among nations, North American Free
Trade Agreement or NAFTA eliminated barriers for trade among the
three countries which are Canada, Mexico, and United States, and
Central American Free Trade Agreement or CAFTA on the other hand is
designed to promote free trade among the United States and six
Central American countries: Costa Rica, El Salvador, Guatemala,
Honduras, Dominican Republic, and Nicaragua. These trade
agreements have the control of international trading and even small
businesses must go through them before they could transact
internationally.
Apply your Knowledge

ACTIVITY PROPER: Why Go Global?
Select a nation that interests you and write or note down its business customs
and practices. How does it differ from our country Philippine? How is it similar. Use
the matrix below.
Philippine and Japan Business Customs/Practices
Business Customs/Practices Business Customs/Practices

Similarities Differences
In Japan:
 Silence is golden
 Age equals seniority
 Hard sell doesn’t sell, instead, they
sell in a gentle and persuasive
 Group solidarity is paramount
approach
 Both observe the other parties
 They value privacy
culture and customs to provide
 Small stuffs matters
groundwork for smoother and
more efficient business relations
In the Philippines:
 Business cards are valued and
 Businesses are run by family-
important
owned conglomerates
 Both build good relationship while
 Business is mostly conducted in
doing business
boardrooms and offices
 Doing business must not rushed
 Being late is considerable but it
should not be more than 15 min.

Note: Business practices are any tactics or activity a business conducts to reach its
objectives
Assess your Knowledge

The following are discussion questions which you can ponder on to maximize
what you’ve learned in this unit.
1. What forces are driving small businesses into international markets?
 What drives small businesses into international markets are the
benefits for them of going global. By extending their business
internationally, their business would be able to increase sales and
profits, extend their products’ life cycle, lower manufacturing costs,
lower the cost of their products, improve competitive position and
enhance reputation, raise quality levels, become more customer-
oriented, and they could lower the offset sales in the domestic market.
2. Outline the eight strategies that small businesses can use to go global.
 The eight strategies that small business can use to go global are of
huge help for them in international market, these strategies are
creating a presence on the Web, relying on trade intermediaries,
outsourcing production, establishing joint ventures, engaging in foreign
licensing arrangements, using counter-trading and bartering, exporting
products or services, and establishing international locations
3. What are the benefits of establishing international locations? What are the
disadvantages?
 Establishing international locations have benefits for small businesses,
however it also has some disadvantages. The benefits of it includes
extending the product’s life cycle, increase sales and profits, lower the
manufacturing costs as well as the product costs, raise quality products
and services, becoming competitive and establish reputation, and lastly
to become more customer-oriented. The disadvantages on the other
hand includes fulfillment of minority interest, specialization leads to
over dependency, cultural identity issues, social welfare issues,
environmental issues, political issues, depletion of natural resources,
and seizure of power and loss of control.
4. What is a tariff? What is a quota? What impact do they have on international
trade?
 A tariff is tax that must be paid by the businesses for
importing/exporting products while a quota is the limit on the quantity
of products that are imported, or exported to the country. It is a
government-imposed trade restriction. Both tariff and quota are only
some of the international barriers that hinders small businesses going
into international markets.
5. What advice would you offer to an entrepreneur interested in launching a
global business effort?
 The only advice that I could give to an entrepreneur that is interested
in launching a global business is that he/she must conduct a research
and consult an expert on how global market works because going
global is not as simple as it may seem. Although it has a lot of benefits
to an entrepreneur, he/she must not forget the disadvantages and
barriers that he/she and his/her business may encounter along the
way.

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UNIT 7.

Global Aspects of Entrepreneurship

PRE ACTIVITY: Global Aspects of Entrepreneurship

Task 1. True or False

1. The process of applying management concepts and techniques TRUE

Task 2. Guide Questions

4. Describe the barriers businesses face when trying to conduct business

Apply your Knowledge

Business Customs/Practices Business Customs/Practices

Assess your Knowledge

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