lec 7 Flashcards
pros of exporting
risk is passed onto importer
less customer support
new business relationships
cons for exporting
lower profit margin
decreased brand awareness
vaulnrable to external factros
sources of financing
investors
banks
suppliers
buyers
types of exporting customers ( 3 types )
foreign distributors
trading companies
export management company
what are the main 2 drivers of global
competition
technology
what are 2 benefits of global sourcing
cheaper prices
better quality
risks of global sourcing
external factors
not developing the skills and culture
what is offshoring
bringing the whole company
what is licensing
its when you sell the right for someone to use something think of logos and disney
what is franchising
when someon buys the right to operate the same business model with the same name
what is contract manufacturing
having someone maufacture on your behaf
what is a turnkey operation
ment for industry specific large projects that are too large to fail, they bring in a company specillized and they have things fully opperational before leaving
what are management contracts
when someohting is built locally but outsourcing the managment to a forign country
what is foreign direct investment
usually the last step when the company wants to enter a new market, they make a purchase ( new wharhouse)
what is a joint venture
when 2 companies join forces 50/50 to make a new company
