Ch 13 Entering Foreign Markets

Early entry when a firm enters a foreign market before other foreign firms and late when a firm enters after other international businesses have established

Advantages accruing to the first to enter a market

Disadvantages associated with entering a foreign market before other international businesses

Costs an early entrant bears that later entrants avoid, such as the time and effort in learning the rules, failure due to ignorance, and the liability of being a foreigner

Sale of products produced in one country to residents of another country

A project in which a firm agrees to set up an operating plant for a foreign client and hand over the "key" when the plant is fully operational

Arrangement in which a licensor grants the rights to intangible property to the licensee for a specified period and receives a royalty fee in return

A specialized form of licensing in which the franchiser sells intangible property to the franchisee and insists on rules to conduct the business

Establishing a firm that is jointly owned by two or more otherwise independent firms

A subsidiary in which the firm owns 100 percent of the stock