Ibus Chap10

  1. Location-Specific Advantages?
    Favorable locations in certain countries may give firms operating there an advantage.
  2. Agglomeration?
    Beyond geographic advantages, location-specific advantages also arise from the clustering of economic activities in certain locations.
  3. Natural Resource Seeking?
    Firms' quest to pursue natural resources in certain locations.
  4. Market Seeking?
    Firms' quest to go after countries that offer strong demand for their products and services.
  5. Efficiency Seeking?
    Firms' quest to single out the most efficient locations featuring a combination of scale economies and low-cost factors.
  6. Innovation Seeking?
    Firms target countries and regions renowned for generating world-class innovations.
  7. Cultural Difference?
    The difference between two cultures along some identifiable dimensions.
  8. Institutional Distance?
    The extent of similarity or dis-similiarity between the regulatory, normative, and cognitive institutions of two countries.
  9. First-mover Advantages?
    Advantages that first movers obtain and that later movers do not enjoy.
  10. Later-mover Advatages?
    Advantages that later movers obtain and that first movers do not enjoy.
  11. Scale of Entry?
    The amount of resources commited to foreign market entry.
  12. Modes of Entry?
    The format of foreign market entry.
  13. Nonequity Mode?
    A mode of entry that tends to reflect relatively smaller commitments to overseas markets.
  14. Equity Mode
    • A mode of entry that tends to reflect relatively larger, harder commitments to
    • overseas markets.
  15. Liscencing/ Franchising?
    An agreeent in which the liscensor/ franchisor sells the rights to intellectual property such as pataents and know-how to the liscensee and franchisee for a fee.
  16. Turnkey Project?
    A project in which clients pay contractors to design and construct new facilities and train personnel.
  17. Build-Operate-Transfer Agreement?
    A nonequity form of entry used to build a longer term precense.
  18. Co-Marketing?
    Efforts among a number of firms to jointly market their products and services.
  19. Joint Venture?
    A new corporate entity given birth and jointly owned by two or more parent companies.
  20. Wholly Owned Subsidiary?
    A subsidiary located in a foreign country that is entirely owned by the parent multinational.
  21. Green-Field Operation?
    Building factories and offices from scratch (on kand formerly used for agricultural purposes).
Card Set
Ibus Chap10