Introduction to IB chapter 11 Flashcards

1
Q

Direct export

A

When a company sells products made in its own country directly to customers in other countries

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2
Q

Free on board (FOB)

A

A contract term where the seller must deliver goods onto a ship or train for transport

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3
Q

Cost, Insurance and Freight (CIF)

A

A contract term where the seller pays for all transportation costs, including insurance, to get the goods to a destination port

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4
Q

Bill of Lading (B/L)

A

A document that proves the goods have been delivered onto a ship or train for transport

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5
Q

Letter of Credit (L/C)

A

A financial agreement where the importer’s bank promises to pay the exporter a certain amount once the goods are delivered

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6
Q

Indirect exports

A

A way for small and medium-sized MNEs to sell to customers in other countries by using local export companies

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7
Q

Export intermediaries

A

companies that help connect sellers in one country with buyers in other countries

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8
Q

Sales agents

A

Intermediaries who earn a commission for helping make sales

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9
Q

Cross-border services

A

services that are sent across national borders

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10
Q

Servicing foreign residents

A

delivery of services to people visiting from another country

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11
Q

Turnkey projects

A

projects where clients pay contractors to design, build and set up new facilities, including training the staff

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12
Q

Build-operate-transfer (BOT)

A

A contract where a company builds and runs a project for a certain period, then transfers it to a new owner

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13
Q

Design-and-build contract (DB)

A

A contract where the same company handles both the design and construction of a project

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14
Q

Tender

A

A process where companies compete for a bigger contract

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15
Q

Consortium

A

A temporary business partnership where several companies work together on a project

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16
Q

Subcontracting

A

A contract that involves outsourcing of an intermediate stage of a value chain (typically to a place where this activity can be done for cheaper)

17
Q

R&D contract

A

A subcontracting of R&D between firms

18
Q

Management contract

A

A contract over the management of assets or a firm owned by someone else

19
Q

Experiential knowledge

A

Knowledge learned by engaging in the activity and context

20
Q

Uppsala model

A

A model of how companies expand internationally, focusing on learning and gradually gaining experience in foreign markets

21
Q

Network internationalization model

A

a model that explains how companies grow internationally by expanding their business networks in different countries

22
Q

Stages models

A

models that describe internationalization as a slow, step-by-step process that small companies must follow to enter foreign markets

23
Q

International new venture (born global)

A

A start-up that aims to gain competitive advantage by using resources and selling products in multiple countries from the very beginning

24
Q

Mimetic behavior

A

Imitating the behavior of others as a means to reduce uncertainty

25
Q

E-businesses

A

Businesses that create and coordinate the value chain of their business online