Chapter 10 Peng Flashcards
Build-operate-transfer (BOT) agreement
A non-equity mode of entry used to build a longer-term presence by building and then operating a facility for a period of time before transferring operations to a domestic agency or firm.
Co-marketing
Efforts among a number of firms to jointly market their products and services.
Country-of-origin effect
The positive or negative perception of firms and products from a certain country
Cultural distance
The difference between two cultures along identifiable dimensions such as individualism.
Equity mode
A mode of entry (JV and WOS) that indicates relatively larger, harder-to-reverse commitments to overseas markets.
First-mover advantages
Benefits that accrue to firms that enter the market first and that late entrants do not enjoy.
Greenfield operations
Building factories and offices from scratch (on a proverbial piece of “green field” formerly used for agricultural purposes).
Institutional distance
The extent of similarity or dissimilarity between the regulatory, normative, and cognitive institutions of two countries.
Joint venture (JV)
A new corporate entity created and jointly owned by two or more parent companies.
Late-mover advantages
Benefits that accrue to firms that enter the market later and that early entrants do not enjoy.
LLL advantages
A firm’s quest for linkage (L) advantages, leverage (L) advantages, and learning (L) advantages. These advantages are typically associated with multinationals from emerging economies.
Location-specific advantages
The benefits a firm reaps from the features specific to a place.
Mode of entry
Method used to enter a foreign market.
Non-equity mode
A mode of entry (exports and contractual agreements) that tends to reflect relatively smaller commitments to overseas markets.
R&D contract
Outsourcing agreement in R&D between firms.
