Introduction to IB chapter 11 Flashcards
Direct export
When a company sells products made in its own country directly to customers in other countries
Free on board (FOB)
A contract term where the seller must deliver goods onto a ship or train for transport
Cost, Insurance and Freight (CIF)
A contract term where the seller pays for all transportation costs, including insurance, to get the goods to a destination port
Bill of Lading (B/L)
A document that proves the goods have been delivered onto a ship or train for transport
Letter of Credit (L/C)
A financial agreement where the importer’s bank promises to pay the exporter a certain amount once the goods are delivered
Indirect exports
A way for small and medium-sized MNEs to sell to customers in other countries by using local export companies
Export intermediaries
companies that help connect sellers in one country with buyers in other countries
Sales agents
Intermediaries who earn a commission for helping make sales
Cross-border services
services that are sent across national borders
Servicing foreign residents
delivery of services to people visiting from another country
Turnkey projects
projects where clients pay contractors to design, build and set up new facilities, including training the staff
Build-operate-transfer (BOT)
A contract where a company builds and runs a project for a certain period, then transfers it to a new owner
Design-and-build contract (DB)
A contract where the same company handles both the design and construction of a project
Tender
A process where companies compete for a bigger contract
Consortium
A temporary business partnership where several companies work together on a project
Subcontracting
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)
R&D contract
A subcontracting of R&D between firms
Management contract
A contract over the management of assets or a firm owned by someone else
Experiential knowledge
Knowledge learned by engaging in the activity and context
Uppsala model
A model of how companies expand internationally, focusing on learning and gradually gaining experience in foreign markets
Network internationalization model
a model that explains how companies grow internationally by expanding their business networks in different countries
Stages models
models that describe internationalization as a slow, step-by-step process that small companies must follow to enter foreign markets
International new venture (born global)
A start-up that aims to gain competitive advantage by using resources and selling products in multiple countries from the very beginning
Mimetic behavior
Imitating the behavior of others as a means to reduce uncertainty
E-businesses
Businesses that create and coordinate the value chain of their business online
