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9 Cards in this Set
- Front
- Back
GSA
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cross-border partnership b/t 2 or more firms from different countries
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2 types of GSAs
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1- equity JV
2- collective JV |
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synergy
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additional economic benefits arising from cooperation b/t 2 parties that provide each other w/ complementary capabilities or resources
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disadvantages facing GSAs
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1- loss of autonomy and control
2- possible information leakage 3- local partners becoming future competitors 4- inter-partner differences in strategic goals |
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reasons for companies starting synergies
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risk reduction
knowledge acquisition economies of scale and rationalization competition mitigation improved local acceptance market entry |
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how is ownership of GSA determined?
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% of equity held by each partner
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5 C's in partner selection
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1- goal compatibility
2- capability 3- commitment 4- resource complementarity 5- cooperative culture |
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types of ownership GSA
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1- majority owned JV
2- minority JV 3- co-owned JV |
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3 types of termination
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1- termination by acquisition
2- termination by redefinition 3- termination by dissolution |