Session 6 Flashcards
Which processes of internalization exist?
- Uppsala model
- network internalization model
- stages models of internalization
- born global
Which internalization processes exist?
- traditional internalization processes
- accelerated internalization processes
Which internalization strategies exist?
- sprinkler strategy
- waterfall strategy
What are the abilities of internationally inexperienced firms to engage in international business?
- institutional environment of the home country
2. institutional distance between the home and host countries
Which choices of entry modes exist?
- non-equity modes
- equity modes
On what does non-equity modes concentrate?
- export
- contractual agreements
On what does equity modes concentrate?
- equity joint ventures
- wholly owned subsidiary
Which methods of export exist?
- direct export
- indirect export
Which intermediaries exist?
- local sales agents
- distributors
Which international contracts exist?
- (contract) licensing
- franchising
Which two persons are needed for licensing?
licensor and licensee
Which two persons are needed for franchising?
franchisor and franchisee
What are the advantages of a franchisor?
- expansion risk
- cost advantages
What are the disadvantages of a franchisor?
- difficulty in finding quality franchisees
- franchisor does not have tight control over
production and marketing, and thus how their
technology and brand names are used - ability to maintain tight control over
franchises becomes difficult as their number
increases
What are the advantages of a franchisee?
- product acceptance
- management expertise
- capital requirements
- knowledge of the market
- operating and structural controls
