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59 Cards in this Set

  • Front
  • Back
Contractual entry strategies in international business
cross border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit contract
Intellectual property rights
the legal claim through which the proprietary assets of firms and individuals are protected from unauthorized use by other parties
a fee paid periodically to compensate a licensor for the temporary use of its intellectual property; often based on a percentage on gross sales generated from using the licensed asset
know how agreement
contract in which the focal firm provides technological or management knowledge about how to to design, manufacture, or deliver a product or a service
master franchise
arrangement in which an independent company is licensed to establish, develop, and manage the entire franchising network in its market and has the right to subfranchise to other franchisees, thus assuming the role o local franchisor
build operate transfer
arrangement in which the firm or a consortium of firms contracts to build a major facility abroad, operate it for a specified period, and then hand it over to the project sponsor, typically the host country government or public, utility.
management contract
arrangement in which a contractor supplies managerial know how to operate a hotel, resort, hospital, airport, or other facility in exchange for compensation
infringement of intellectual property
unauthorized use, publication, or reproduction of products or services that are protected by a patent, copyright, trademark, or other intellectual property right.
global marketing strategy
a plan of action that guides the firm in how to position itself and tis offering in foreign markets, which customer segments to target, and the degree to which its marketing program elements should be standardized and adapted
global market segment
a group of customers that share common characteristics across many national markets
firm efforts to modify one or more elements of its international marketing program to accommodate specific customer requirements in a particular market
firm efforts to make its marketing program elements uniform, with a view to targeting entire regions, or even the global marketplace, with a similar product or service
global brand
a brand whose positioning, advertising strategy, look, and personality are standardized worldwide
gray market activity
legal importation of genuine products into a country by intermediaries other than authorized distributors (also known as parallel imports)
international price escalation
the problem of enduser prices reaching exorbitant levels in the export market caused by multilayered distribution channels, intermediary margins, tariffs, and other international customer costs
transfer pricing
the practice of pricing intermediate or finished products exchanged among the subsidiaries and affiliates of the same corporate family located in different countries
global account management
servicing a key global customer in a consistent and standardized manner, regardless of where in the world it operates
international human resource management
the planning, selection, training, employment, and evaluation of employees for international operations
host-country national
an employee who is a citizen of the country where the MNE subsidiary or affiliate is located
parent-country national
an employee who is a citizen of the country where the MNE is headquartered
third country national
an employee who is a citizen of a country other than the home or host country
an employee who is assigned to work and reside in a foreign country for an extended period, usually a year or longer
expatriate failure
the premature return of an employee from an international assignement
culture shock
confusion and anxiety, often akin to mental depression, that can result from living in a foreign culture for an extended period
area studies
factual knowledge of the historical political and economic environment of the host country
practical information
knowledge and skills necessary to function effectively in a country, including housing, health care, education, and daily living
cross-cultural awareness
ability to interact effectively and appropriately with people from different language and cultural backgrounds
the return of the expatriate to his or her home country following the completion of a lengthy foreign assignment
cultural intelligence
the capability of an employee to function effectively in situations characterized by cultural diversity
global talent pool
a searchable database of employees, profiling their international skill sets and potential for supporting the firm's global aspirations
global team
an internationally distributed group of people with a specific mandate to make or implement decisions that are international in scope
performance appraisal
the formal processes of assessing how effectively employees perform their jobs
collective bargaining
collective negotiations between management and hourly labor and technical staff regarding wages and working conditions
an industrial relations practice where labor representatives sit on the corporate board and participate in company decision making
equity financing
the issuance of shares of stock to raise capital from investors an the use of retained earnings
debt financing
the borrowing of money from banks or other financial intermediaries, or selling corporate bonds to individuals or institutions to raise capital
global money market
the collective financial markets where firms and governments raise short-term financing
global capital market
the collective financial markets where firms and governments raise intermediate-term and long-term financing
global equity market
the worldwide market of funds for equity financing- the stock exchanges throughout the world where investors and firms meet to buy and sell shares of stock
US dollars held in banks outside the United States, including foreign branches of US banks
Any currency deposited in a bank outside its country of origin
debt instrument that enables the issuer (borrower) to raise capital by promising to repay the principal along with interest on a specified date (maturity)
global bond market
the international marketplace in which bonds are bought and sold, primarily through banks and stockbrokers
foreign bond
a bond sold outside the issuers country and denominated in the currency of the country in which it is issued
a bond sold outside the issuer's home country but denominated in its own currency
intracorporate financing
funds provided from sources inside the firm (both the headquarters and subsidiaries) such as equity, loans, and trade credits
fronting loan
a loan between the parent and its subsidiary, channeled through a large bank or other financial intermediary
tax haven
a country hospitable to business and inward investment because of its low corporate income taxes
multilateral netting
strategic reduction of cash transfers within the MNE family through the elimination of offsetting cash flows
transaction exposure
the currency risk that firms face when outstanding accounts receivable or payable are denominated in foreign currencies
translation exposure
the currency risk that results when a firm translates financial statements denominated in a foreign currency into the functional currency of the parent firm, as part of consolidating international financial results
the process of combining and integrating the financial results of foreign subsidiaries into the financial statements of the parent firm
economic exposure
the currency risk that results from exchange rate fluctuations affecting the pricing of products, the cost of inputs, and the value of foreign investments
spot rate
the exchange rate applicable to the trading of foreign currencies in which the current rate of exchange is used and delivery is considered immediate
forward rate
the exchange rate applicable to the collection or delivery of a foreign currency at some future date
direct quote
the number of units of the domestic currency needed to acquire one unit of the foreign currency (also known as the normal or American quote)
indirect quote
the number of units of the foreign currency obtained for one unit of the domestic currency (also known as the reciprocal or European/Continental terms)
currency traders who seek to minimize the risk of exchange rate fluctuations, often by buying forwards or similar financial instruments
currency traders who seek profits by investing in currencies with the expectation that they will rise in value in the future