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Four types of participants in International Business
- 1. Focal firm
- 2. Distribution channel intermediary
- 3. Facilitator
- 4. Government
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Focal firm
The initiator of an international business transaction, which conceives, designs, and products offering intended for consumption by customer worldwide. Primarily MNEs and SMEs
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Distribution channel intermediary
A specialist firm that provides various logistics and marketing services for focal firms as part of the international supply chain both in the home country and abroad.
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Facilitator
A firm or an individual with special expertise in banking, legal advice, customs clearance, or related support service that assists focal firms in the performance of international business transactions
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Freight forwarder
A specialized logistics service provider that arranges internationals hipping on behalf of exporting firms.
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Multinational enterprise (MNE)
Large company with substantial resources that performs various business activities through a network of subsidiaries and affiliates located in multiple countries
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Small and medium sized enterprise (SME)
A company with 500 or fewer employees (as defined in Canada and the U.S.)
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Born global firm
Young entrepreneurial company that initiates international business activity early in its evolution, moving rapidly into foreign markets.
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Licensor
A firm that enters a contractual agreement with a foreign partner to allow the partner the right to use certain intellectual property for a specified period of time in exchange for royalties or other compensation.
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Franchisor
A firm that grants another the right to use an entire business system in exchange for fees, royalties, or other forms of compensation
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Turnkey contractors
Focal firms or a consortium of firms that plan, finance, organize, manage, and implement all phases of a project and then hand it over to a foreign customer after training local personnel.
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Joint venture partner
A focal firm that creates and jointly owns a new legal entity through equity investment or pooling of assets
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Project-based non-equity venture partners
A collaboration in which the partners create a project with a relatively narrow scope and a well-defined timetable without creating a new legal entity.
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Foreign distributor
Foreign market-based intermediary that works under contract for an exporter, takes title to, and distributes the exporter's products in a national market or territory, often performing marketing functions such as sales, promotion, and aftersales service.
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Agent
Intermediary (often an individual or a small firm) that handles orders to buy and sell commodities, products, and services in international business transactions for a commission.
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Manufacturer's representative
An intermediary contracted by the exporter to represent and sell its merchandise or services in a designated country or territory.
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Trading company
Intermediary that engages in import and export of a variety of commodities, products, and services.
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Export management company (EMC)
A domestically based intermediary that acts as an export agent on behalf of a client company
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Logistics service provider
Transportation specialist that arranges for physical distribution and storage of products on behalf of focal firms, as well as controlling information between the point of origin and the point of consumption.
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Customs brokers
Specialist enterprises that arrange clearance of products through customs on behalf of importing firms.
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Sovereign wealth fund (SWF)
A state-owned investment fund that undertakes systematic, global investment activities.
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