Ch4.4 Conducting Business Internationally Flashcards
Global strategy, what is it?
A strategy of selling a standardized (or homogeneous) product across the globe
Standardized products are what
Universal needs
What is a multidomestic strategy
A strategy in which domestic products are customized to meet the unique local needs, tastes or preferences of customers abroad.
What is a transnational strategy
Offers a customized product while simultaneously selling it at the lowest possible price.
How do firms enter foreign markets?
Export their products, implement turnkey projects, sell franchises,enter licensing agreements(joint ventures or strategic alliances), engage in contract manufacturing and establish wholly owned subsidiaries.
How do many firms I orally enter foreign markets
By exporting
Turnkey projects,what are they?
Occur when firms export their technological know-how in exchange for a fee.
What is franchising
Selling a well-known brand name or a proven method of doing business to an investor in exchange for a fee and a percentage of sales or profits.
What is licensing?
An agreement in which the licensors intangible property (trademarks, copyrights,trade secrets etc) may be sold or made available to a licensee in exchange for a royalty fee.
What are joint ventures
Involve shared ownership in a subsidiary firm. They team up to take an advantage . They are better together than alone.
What are strategic alliances
Are cooperative arrangements between actual or potential competitors.
Contracting manufacturing what is it.
Occurs when a firm subcontracts part or all of its goods to an outside firm as an alternative to owning and operating its own production facility.
What are wholly owned subsidiaries
A firm owned entirely by another firm rather than individual shareholders.
