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54 Cards in this Set
- Front
- Back
timing of entry
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when business enters a foreign market. either early or late
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pioneering costs
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costs early entrant must bear that later entrant avoids
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strategic commitment
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decision that has long-term impact and is difficult to reverse
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turnkey project
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firm agrees to set up an operating plant for foreign client and hand over controls when plant is fully operational
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cross-licensing agreement
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arrangement in which company licenses valuable intangible property to foreign partner and receives license for partner's valuable knowledge
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franchising
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company sells intangible property to another entity. the company also insists that the entity agree to abide by strict rules as to how it does business
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joint venture
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establishing firm that is owned by two or more otherwise independent firms
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wholly owned subsidiary
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subsidiary in which firm owns 100 percent of stock
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export management company
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export specialists that act as an export marketing or international department for their client firms
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letter of credit
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document issued by bank indicating that it will make payments to a beneficiary upon presentation of particular documents
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bill of exchange
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sometimes called a draft. instrument normally used in international commerce to effect payment
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draft
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order written by an exporter instructing an importer, or an importer's agent, to pay a specified amount of money at specified time
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sight draft
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payable upon presentation to drawee
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time draft
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allows for delay in payment to set future date
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bill of lading
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document issued to an exporter by common carrier transporting the merchandise; serves as receipt, contract and document of title
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export-import bank
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independent agency of US gov't whose mission is to provide financing aid that will facilitate exports, imports and commodities exchanges between US and countries
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countertrade
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trade of goods and services for other goods and services via whole range of barterlike agreements
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barter
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direct exchange of goods or services between two parties without cash transaction
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counterpurchase
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when firm agrees to purchase a certain amount of materials back from country to which it made a sale
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offset
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when firm agrees to purchase goods or services from any firm within country to which it made a sale
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switch trading
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using specialized third-party trading house in countertrade agreement
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buyback
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when firm builds plant in a country and agrees to take certain percentage of plant's output as partial payment of contract
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production
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activities involved in creating product
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logisitics
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procurement and transmission of material thru supply chain, from suppliers to customers
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total quality management (TQM)
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philosophy of management that focuses on improving quality of company's products and services
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six sigma
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modern successor to tqm. statistically based management philosophy that aims to reduce defects, boost productivity, eliminate waste, and cut costs throughout company
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ISO 9000
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certification process requires certain quality standards to be met
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minimum efficient scale
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level of output at which most plant-level scale economies are exhausted
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flexible manufacturing technology (lean production)
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manufacturing technology designed to reduce setup time, improve job scheduling and quality control
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mass customization
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ability of companies to use flexible manufacturing technology to achieve product customization at low cost
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flexible machine cells
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grouping of various types of machinery, common materials handler, and centralized cell controller computer that produces a family of products
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global learning
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idea that valuable knowledge resides not only in firm's domestic operations but in its foreign subsidiaries as well.
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make or buy decisions
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whether firm should make or outsource making component parts
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specialized asset
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asset whose value is contingent upon particular persisting relationship
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marketing mix
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choices about product attributes, distribution strategies, communication strategies, and pricing strategies that firm offers its targeted markets
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market segmentation
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identifying distinct groups of consumers whose purchaseing behavior differs from others in important ways. based on criteria such as geography, demographics, sociocultural factors and physchological factors
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concentrated retail system
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few retailers supply most of market
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fragmented retail sustem
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many retailers supply market, with no one having a major share
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channel length
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number of intermediaries between the producer and consumer
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exclusive distribution channel
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channel that outsiders find difficult to access
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channel quality
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expertise, competencies, and skills of established retailers in nation and their ability to sell and support products of international business
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source effects
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when receiver of message evaluates message on basis of status or image of sender
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country of origin effects
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extent to which place of a product's manufacturing influences its evaluations in the market
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noise
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amount of other messages competing for potential consumer's attention
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push strategy
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emphasizes personal selling to potential customers rather than mass media advertising
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pull strategy
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depends more on mass media advertising to communicate the marketing message to potential customers
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strategic pricing
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pricing strategy aimed at giving a company a competitive advantage over its rival
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predatory pricing
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pricing products below fair market values as competitive advantage weapon to drive weaker competitors out of market
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multipoint pricing
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occurs when pricing strategy in one market may have an impact on rival's pricing strategy in another market
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experience curve pricing
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aggressive pricing designed to increase volume and help firm realize experience curve economies
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ethnocentric staffing policy
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staffing approach in which all key management positions are filled by parent-country nationals
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polycentric staffing policy
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policy where firm recruits host-country nationals to manage subsidiaries in their own country, while parent-country nationals occupy key positions at corporate headquarters
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geocentric staffing policy
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policy under which firm seeks best people for key jobs throughout company regardless of nationality
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expatriate failure
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premature return on expatriate manager to his or her own country
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