International Business - Chapter 13

Front 1

entry mode

Back 1

institutional arrangements by which a firm gets its products, technologies, human skills, or other resources into a market

Front 2

direct exporting

Back 2

practice by which a company sells its products directly to buyers in a target market

Front 3

indirect exporting

Back 3

practice by which a company sells its products to intermediaries who then resell to buyers in a target market

Front 4

agents

Back 4

individuals or organizations that represent one of more indirect exporters in a target market

Front 5

export management company

Back 5

company that exports products on behalf of indirect exporters

Front 6

export trading company

Back 6

company that provides services to indirect exporters in addition to activities related directly to clients' exporting activities

Front 7

freight forwarder

Back 7

specialist in export-related activities such as customs clearing, tariff schedules, and shipping and insurance fees

Front 8

countertrade

Back 8

practice of selling goods or services that are paid for, in whole or part, with other goods or services

Front 9

barter

Back 9

exchange of goods or services directly for other goods or services without the use of money

Front 10

couterpurchase

Back 10

sale of goods or services to a country by a company that promises to make a future purchase of a specific product from the country

Front 11

offset

Back 11

agreement that a company will offset a hard-currency sale to a nation by making a hard-currency purchase of an unspecified product for that nation in the future

Front 12

switch trading

Back 12

practice in which one company sells to another its obligation to make a purchase in a given country

Front 13

buyback

Back 13

export of industrial equipment in return for products produced by that equipment

Front 14

advance payment

Back 14

export/import financing in which an importer pays an exporter for merchandise before it is shipped

Front 15

documentary collection

Back 15

export/import financing in which a bank acts as an intermediary without accepting financial risk

Front 16

draft (bill of exchange)

Back 16

document ordering an importer to pay an exporter a specified sum of money at a specified time

Front 17

bill of lading

Back 17

contact between an exporter and a shipper that specifies merchandise destination and shipping costs

Front 18

letter of credit

Back 18

export/import financing in which the importer's bank issues a document stating that the bank will pay the exporter when the exporter fulfills the terms of the document

Front 19

open account

Back 19

export/import financing in which an exporter ships merchandise and later bills the importer for its value

Front 20

licensing

Back 20

practice by which one company owning intangible property grants another firm the right to use that property for a specified period of time

Front 21

cross licensing

Back 21

practice by which companies use licensing agreements to exchange intangible property with one another

Front 22

franchising

Back 22

practice by which one company supplies another with intangible property and other assistance over an extended period of time

Front 23

management contact

Back 23

practice by which one company supplies another with managerial expertise for a specific period of time

Front 24

turnkey project

Back 24

practice by which on company designs, constructs, and tests a production facility for a client firm

Front 25

wholly owned subsidiary

Back 25

facility entirely owned and controlled by a single parent company

Front 26

joint-venture

Back 26

separate company that is created and jointly owned by two or more independent entities to achieve a common business objective

Front 27

strategic alliance

Back 27

relationship whereby two or more entities cooperate to achieve the strategic goals of each