1. Define international entrepreneurship and describe one example of an international

International Entrepreneurship:

Starting, Developing and Managing a Global Venture

Part 1 – International Entrepreneurship and Entrepreneurship Opportunities

Chapter 1 – Importance of International Entrepreneurship

Chapter Exercises

• Define international entrepreneurship and describe one example of an international

entrepreneur and his or her business.• International Entrepreneurship: the process of an entrepreneur conducting business activities across national boundaries and can include exporting, licensing, opening a sales office in another country, or advertising overseas.• Example of an international entrepreneur should include an instance of at least one of the items above.

• What are the key characteristics to understand when moving a business from one country

or region to another?

• Economics – dealing with and navigating product valuations; government regulations;

and banking, venture capital, marketing, and distribution systems

• Stage of economic development
• Balance of payments

(International Entrepreneurship Starting, Developing, and Managing a Global Venture, 3e Robert Hisrich ) (Solution Manual, For Complete File, Download link at the end of this File) 1 / 3

Hisrich – International Entrepreneurship Instructor’s Resource

• Type of economic system
• Political-legal environment – identifying what differences in political and legal systems

can greatly affect an entrepreneur’s ability to do business in a foreign country or region (like pricing decisions, advertising , taxation, etc.)

• Language
• Cultural environment – making sure that the business plan and activities take into account

the cultural differences (including language and business practices)

• Technological environment
• Local foreign competition
• Subsidies offered by foreign governments
• Distribution Channels – getting your product from the business to the customer and

whether or not there are barriers to shipping, like poor infrastructure and communications

• Change – remaining aware of any political or economic changes that might occur in an

export or import market; preparing your company to handle these changes as they arise and not lose business or market share from an inability to handle them

• Communication – identifying the best forms of communication between headquarters and

manufacturing and sales outlets around the world. Also, having an awareness of what communication challenges exist and figuring out how to handle these challenges Lacking an understanding of how each of these elements affect a global venture can increase its vulnerability to small changes in economic, political, legal, and other situations. In addition, by identifying each of these elements within the international venture, an entrepreneur will be able adapt more quickly as changes occur.

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Hisrich – International Entrepreneurship Instructor’s Resource

• What are the motivations for taking a business global? What factors influence this

decision?

• Increased profits are consistently a strong motivation for going global. An entrepreneur must look at all of the expansion costs entailed in becoming global, such as increases in marketing spending and shipping costs.

• Other motivations include:

• Large markets outside of the home country
• Decline in sales or sales potential in the home market
• Avoidance of increased regulations or societal concerns related to a product
• Obsolete technology in the home country
• End of product life cycle
• Lower labor, manufacturing, and raw material costs
• Leveraging benefits of the internationalization of operations
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