International Business 4344-830 Exam 3

International Business 4344-830
Exam 3




Firstmmovermadvantage:m-manswers--
advantagesmaccruingmtomthemfirstmtomentermammarket

First-movermdisadvantage:m-manswers--
Disadvantagesmassociatedmwithmenteringmamforeignmmarketmbeforemotherminternationa
lmbusinesses.

Exporting:m-manswers--
Salesmofmproductsmproducedminmonemcountrymtomresidentsmofmanothermcountry

DisadvantagesmofmExporting:m-manswers--lower-
costmlocationsmformmanufacturingmabroad,mhighmtransportmcostsmcanmmakemexporting
muneconomical,mtrafficmbarriersmcanmmakemexportingmuneconomical


Licensing:m-manswers--
Occursmwhenmamfirmm(themlicensor)mlicensesmthemrightmtomproducemitsmproduct,musemi
tsmproductionmprocesses,mormusemitsmbrandmnamemormtrademarkmtomanothermfirmm(th
emlicensee)

LicensingmAgreements:m-manswers--
Agreementminmwhichmamlicensormgrantsmthemrightsmtomintangiblempropertymtomamlicens
eemformamspecifiedmperiodmandmreceivesmamroyaltymfeemtomreturn

DisadvantagemofmLicensing:m-manswers--
doesn'tmgivemamfirmmthemtightmcontrolmovermmanufacturing,mmarketing,mandmstrategymi
smrequiredmformrealizingmexperiencemcurvemandmlocationmeconomies;msecondmismcom
petingminmamglobalmmarketmmaymrequiremamfirmmtomcoordinatemstrategicmmovesmacros
smcountriesmbymusingmprofitsmearnedminmonemcountrymtomsupportmcompetitivemattacks
minmanother;mthirdmismtechnologicalmknow-
howmtomforeignmcompaniesmwheremmostmcompaniesmwantmtomcontrolmbutmwithmlicensi
ngmtheymcanmlosemcontrol

, Franchising:m-manswers--
foodmandmhotels;mamspecializedmformmofmlicensingminmwhichmthemfranchisermsellsmthe
mintangiblempropertymtomthemfranchiseemandminsistsmonmrulesmtomconductmthembusines
s

Tariffs:m-manswers--amtaxmleviedmonmimports

StrategicmAlliances:m-manswers--
aremcooperativemagreementsmbetweenmpotentialmormactualmcompetitors;mnon-
contractualmmarketmofmtwomcompanies;malliancesmcanmbemterminatedminmamsnap

TimingmofmEntry:m-manswers--
Entrymismearlymwhenmamfirmmentersmamforeignmmarketmbeforemothermforeignmfirmsman
dmlatemwhenmamfirmmentersmaftermotherminternationalmbusinessesmhavemestablishedmt
hemselves.

Pioneeringmcost:m-manswers--
Costsmanmearlymentrantmbearsmthatmlatermentrantsmavoid,msuchmasmthemtimemandmeffo
rtminmlearningmthemrules,mfailuremduemtomignorance,mandmthemliabilitymofmbeingmamforei
gner.

Turnkeymcontracts:m-manswers--
amprojectminmwhichmamfirmmagreesmtomsetmupmanmoperatingmplantmformamforeignmclient
mandmhandmovermthem"key"mwhenmthemplantmismfullymoperational.


JointmVentures:m-manswers--amcooperativemundertakingmbetweenmtwomormmoremfirms

Whollymownedmsubsidiaries/mgreenfieldmsubsidiaries:m-manswers--
amsubsidiaryminmwhichmthemfirmmownsm100mpercentmofmthemstock

Fewermthanm1%mareminvolvedmanminternationalmtrademmostmUSmbusinessesmaremsmal
lmlocalmcompanies.m-manswers--

DirectmInvestment:m-manswers--
occursmwhenmamfirmminvestsmdirectlyminmfacilitiesmtomproducemormmarketmamgoodmorm
serviceminmamforeignmcountry

MITI:m-manswers--Japan'smMinistrymofmInternationalmTrademandmIndustry

SogomShosha:m-manswers--
Japanesemtradingmcompanies:mamkeympartmofmthemkeiretsu,mthemlargemJapanesemindu
strialmgroups

ExportmManagementmCompanym(EMC):m-manswers--
anmexportmspecialistmthatmactsmasmanmexportmmarketingmdepartmentmformclientmfirms