Ch 13 Entering Foreign Markets

  1. Timing of Entry
    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
  2. First-Mover Advantages
    Advantages accruing to the first to enter a market
  3. First-Mover Disadvantages
    Disadvantages associated with entering a foreign market before other international businesses
  4. Pioneering Costs
    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
  5. Exporting
    Sale of products produced in one country to residents of another country
  6. Turnkey Project
    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
  7. Licensing Agreement
    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
  8. Franchising
    A specialized form of licensing in which the franchiser sells intangible property to the franchisee and insists on rules to conduct the business
  9. Joint Venture
    Establishing a firm that is jointly owned by two or more otherwise independent firms
  10. Wholly Owned Subsidiary
    A subsidiary in which the firm owns 100 percent of the stock
Card Set
Ch 13 Entering Foreign Markets
Chapter 13 Business terms