Ch 8 Bus498

  1. Greenfield Investment
    The establishment of a new operation in a foreign country
  2. Flow of FDI
    The amount of foreign direct investment undertaken over a given time period (normally one year)
  3. Stock of FDI
    The total accumulated value of foreign-owned assets at a given time
  4. Outflows of FDI
    Flow of foreign direct investment out of a country
  5. Inflows of FDI
    Flow of foreign direct investment into a country
  6. Eclectic Paradigm
    Argument that combining location specific assets or resource endowments and the firm's own unique assets often requires FDI; it requires the firm to establish production facilities where those foreign assets or resource endowments are located
  7. Exporting
    Sale of products produced in one country to residents of another country
  8. Licensing
    Occurs when a firm (the licensor) licenses the right to produce its product, use its production processes, or use its brand name or trademark to another firm (the licensee). In return fro giving the licensee these rights, the licensor collects a royalty fee on every unit the licnesee sells
  9. International Theory
    Marketing imperfection approach to foreign direct investment
  10. Market Imperfections
    Imperfections in the operation of the market mechanism
  11. Oligopoly
    An industry composed of a limited number of large firms
  12. Multipoint Competition
    Arises when two or more enterprises encounter each other in different regional markets, national markets, or industries
  13. Location-Specific Advantages
    Advantages that arise from using resource endowments or assets that are tied to a particular foreign location and that a firm finds valuable to combine with its own unique assets (such as the firm's technological, marketing, or management know-how)
  14. Externalities
    Knowledge spillovers
  15. Balance-of-Payments Accounts
    National accounts that track both payments to and receipts from foreigners
  16. Current Account
    In the balance of payments, records transactions invovling the export or import of goods and services
  17. Offshore Production
    FDI undertaken to serve the home market
Card Set
Ch 8 Bus498
Bus498 Exam 2