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9 Cards in this Set
- Front
- Back
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Strategic Alliances |
Cooperative agreements between potential or actual competitors. |
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Timing of Entry |
The time when an international business enters an attractive market. |
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First-mover advantages |
Advantages frequently associated with entering a market early. 1) Ability to preempt rivals and capture demand by establishing a strong brand name. 2) Ability to build sales volume in the country. 3) Ability of early entrants to create switching costs that tie customers into their products or services |
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Exporting |
Advantages include it avoids the often substantial costs of establishing manufacturing operations in the host country. Also helps firm achieve experience curve and location economies. Disadvantages occur if lower-cost locations for manufacturing the product can be found abroad. High export costs can make exporting uneconomical. Lastly there may be high tariffs. |
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Turnkey Project |
when the contractor agrees to handle every detail of the project for a foreign client, including the training of operating personnel. |
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Licensing Agreement |
An agreement whereby a licensor grants the rights to intangible property to another entity for a specified period, and in return receives a royalty fee. |
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Franchising |
A specialized form of licensing in which the franchiser not only sells intangible property to the franchisee but also insists that the franchisee agree to abide by strict rules as to how it does business |
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Joint Venture |
Establishing a firm that is jointly owned by two or more otherwise independent firms |
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Wholly Owned Subsidiary |
When a firm owns 100 percent of the stock of operations in a foreign country |
