Lecture 6 + chapter 7 & 8 Flashcards
What is an ethnic entrepreneur?
Individuals whose group membership is tied to a common cultural heritage or origin
What is a middleman minority?
Entrepreneurs who take advantage of ethnic resources such as language, network and skills
What is an enclave entrepreneur?
Entrepreneurs who are bound by a certain location
What are all the entry modes, as a reply on ‘how should Expatica internationalize into new markets’?
1) Exporting
2) Turnkey contracts
3) Licensing
4) Franchising
5) Joint ventures
6) Wholly owned subsidiaries
Give advantages & disadvantages for exporting
Advantage: ability to realize location and experience curve economies
Disadvantage: high transport costs, trade barriers
Give advantages & disadvantages for Turnkey contracts
Advantage: FDI restricted countries can earn returns
Disadvantage: Creates efficient competitors
Give advantages & disadvantages for Licensing
Advantage: Low development costs and risks
Disadvantage: Lack of control over technology
Give advantages & disadvantages for Franchising
Advantage: Low development costs and risks
Disadvantage: Lack of control over quality
Give advantages & disadvantages for Joint ventures
Advantage: Access to local partner’s knowledge
Disadvantage: Lack of control over technology
Give advantages & disadvantages for Wholly owned subsidiaries
Advantage: Protection of technology
Disadvantage: High costs and risks
What are the four suggested factors by Amit and Zott (2001) for creating value in e-business?
1) Efficiency: speeding up of transaction throughput
2) Complementarities: offering new products
3) Lock-in: keep customers in repeated transactions
4) Novelty: new ways of providing services (innovation)
What is the dynamic network and why can Expatica be seen as a broker?
Network of:
-> Designers: creating
-> Producers: manufacturing
-> Suppliers: supply
-> Distributors: distribution
-> Brokers: coordinate interactions between the others
Expatica connects various stakeholders.
