International Business Flashcards
What is a counter trade agreement
It involves bartering products for other products instead of currency
What is the job of an export agent
is a person or entity that facilitates the sale and distribution of goods or services to foreign markets on behalf of a domestic company.
What is a trading company
A trading company acts as an intermediary between manufacturers and buyers, facilitating the exchange of goods. They may also engage in import/export activities, sourcing products from one country and selling them in another. They handle logistics, distribution, and sometimes even marketing and sales support.
What is licensing?
A licensor allows another the license to use its company name, product, brand trademark, materials and or production processes in exchange for a fee or royalty
What is franchising?
A franchiser agrees to provide a franchisee the name logo method of operation advertising products and other elements associated with their franchise business in exchange for financial commitment and agreement to contact business in accordance with the franchise operation standard
What is contract manufacturing?
Is where a firm hires a foreign company to produce a specified product or part of a product for the firm to specifications with the final product carrying the domestic firms name
What is outsourcing and insourcing
Outsourcing is the practice of contracting out certain business functions or processes to external parties rather than handling them in-house
Insourcing involves bringing certain business functions or processes back in-house that were previously outsourced to external parties.
What is offshoring
relocating certain business activities or processes to another country, often to take advantage of lower labor costs, tax benefits, or other favorable economic conditions.
Explain a joint venture
When a company finds a local company to share cost an operation of the business
Explain strategic alliance
A partnership formed to create a competitive advantage on a worldwide basis
What is direct investment?
It involves the development and operation of new facilities or the purchase of all or part of an existing operation in a foreign country
What is a multi national corporation MNC?
A company that operates at a worldwide scale without significant ties to any one nation or region
What is a multinational strategy?
To standardize products, services, and operations across multiple countries or regions while also adapting to local market differences when necessary.
What are the advantages of franchise?
Management training and support is provided
Standardise quality of goods and service
National and local advertising programs
Financial assistance
Site selection and territorial power
Great chance for success
What are the disadvantages of franchise?
Restriction on purchasing
Franchise fees and profit sharing with franchiser
Limited product line
Possible market saturation
Less freedom on business decisions
