1. Generally, entrepreneurs should avoid head-to-head price competition with other firms that can more easily achieve lower prices through:

a. offering lower value products and services.

b. a better designed web site.

c. geographic advantages.

d. lower cost structures.

2. If a country's currency is not convertible into any other currency, companies exporting to that country usually engage in either countertrading or bartering.

True

False

3. Foreign licensing is:

a. required when a business buys and sells products in many countries, either in its own name or as an agent for its buyer-seller clients.

b. a government-owned or business-owned facility set up in a foreign country to buy products that are made there.

c. the use by one firm (the carrier) of its overseas distribution network to sell non-competitive products made by other firms (riders).

d. an agreement in which a licenser gives a licensee in another country the right to use that licenser's patent, trademark, copyright, technology, and products in return for a percentage of the licensee's sales or profits.

4. Once a company has invested time and money developing a unique new product, in order to recoup some of the high R&D costs, they will likely use a:

a. skimming pricing strategy.

b. penetration pricing strategy.

c. sliding down the demand curve pricing strategy.

d. discount pricing strategy.