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
First-Mover Advantages
Advantages accruing to the first to enter a market
First-Mover Disadvantages
Disadvantages associated with entering a foreign market before other international businesses
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
Exporting
Sale of products produced in one country to residents of another country
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
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
Franchising
A specialized form of licensing in which the franchiser sells intangible property to the franchisee and insists on rules to conduct the business
Joint Venture
Establishing a firm that is jointly owned by two or more otherwise independent firms
Wholly Owned Subsidiary
A subsidiary in which the firm owns 100 percent of the stock