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59 Cards in this Set
- Front
- Back
Contractual entry strategies in international business
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cross border exchanges where the relationship between the focal firm and its foreign partner is governed by an explicit contract
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Intellectual property rights
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the legal claim through which the proprietary assets of firms and individuals are protected from unauthorized use by other parties
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royalty
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a fee paid periodically to compensate a licensor for the temporary use of its intellectual property; often based on a percentage on gross sales generated from using the licensed asset
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know how agreement
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contract in which the focal firm provides technological or management knowledge about how to to design, manufacture, or deliver a product or a service
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master franchise
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arrangement in which an independent company is licensed to establish, develop, and manage the entire franchising network in its market and has the right to subfranchise to other franchisees, thus assuming the role o local franchisor
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build operate transfer
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arrangement in which the firm or a consortium of firms contracts to build a major facility abroad, operate it for a specified period, and then hand it over to the project sponsor, typically the host country government or public, utility.
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management contract
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arrangement in which a contractor supplies managerial know how to operate a hotel, resort, hospital, airport, or other facility in exchange for compensation
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infringement of intellectual property
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unauthorized use, publication, or reproduction of products or services that are protected by a patent, copyright, trademark, or other intellectual property right.
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global marketing strategy
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a plan of action that guides the firm in how to position itself and tis offering in foreign markets, which customer segments to target, and the degree to which its marketing program elements should be standardized and adapted
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global market segment
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a group of customers that share common characteristics across many national markets
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adaptation
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firm efforts to modify one or more elements of its international marketing program to accommodate specific customer requirements in a particular market
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standardization
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firm efforts to make its marketing program elements uniform, with a view to targeting entire regions, or even the global marketplace, with a similar product or service
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global brand
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a brand whose positioning, advertising strategy, look, and personality are standardized worldwide
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gray market activity
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legal importation of genuine products into a country by intermediaries other than authorized distributors (also known as parallel imports)
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international price escalation
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the problem of enduser prices reaching exorbitant levels in the export market caused by multilayered distribution channels, intermediary margins, tariffs, and other international customer costs
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transfer pricing
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the practice of pricing intermediate or finished products exchanged among the subsidiaries and affiliates of the same corporate family located in different countries
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global account management
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servicing a key global customer in a consistent and standardized manner, regardless of where in the world it operates
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international human resource management
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the planning, selection, training, employment, and evaluation of employees for international operations
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host-country national
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an employee who is a citizen of the country where the MNE subsidiary or affiliate is located
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parent-country national
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an employee who is a citizen of the country where the MNE is headquartered
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third country national
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an employee who is a citizen of a country other than the home or host country
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expatriate
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an employee who is assigned to work and reside in a foreign country for an extended period, usually a year or longer
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expatriate failure
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the premature return of an employee from an international assignement
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culture shock
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confusion and anxiety, often akin to mental depression, that can result from living in a foreign culture for an extended period
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area studies
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factual knowledge of the historical political and economic environment of the host country
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practical information
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knowledge and skills necessary to function effectively in a country, including housing, health care, education, and daily living
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cross-cultural awareness
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ability to interact effectively and appropriately with people from different language and cultural backgrounds
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repatriation
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the return of the expatriate to his or her home country following the completion of a lengthy foreign assignment
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cultural intelligence
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the capability of an employee to function effectively in situations characterized by cultural diversity
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global talent pool
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a searchable database of employees, profiling their international skill sets and potential for supporting the firm's global aspirations
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global team
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an internationally distributed group of people with a specific mandate to make or implement decisions that are international in scope
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performance appraisal
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the formal processes of assessing how effectively employees perform their jobs
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collective bargaining
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collective negotiations between management and hourly labor and technical staff regarding wages and working conditions
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codetermination
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an industrial relations practice where labor representatives sit on the corporate board and participate in company decision making
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equity financing
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the issuance of shares of stock to raise capital from investors an the use of retained earnings
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debt financing
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the borrowing of money from banks or other financial intermediaries, or selling corporate bonds to individuals or institutions to raise capital
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global money market
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the collective financial markets where firms and governments raise short-term financing
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global capital market
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the collective financial markets where firms and governments raise intermediate-term and long-term financing
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global equity market
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the worldwide market of funds for equity financing- the stock exchanges throughout the world where investors and firms meet to buy and sell shares of stock
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Eurodollars
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US dollars held in banks outside the United States, including foreign branches of US banks
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Eurocurrency
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Any currency deposited in a bank outside its country of origin
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bond
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debt instrument that enables the issuer (borrower) to raise capital by promising to repay the principal along with interest on a specified date (maturity)
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global bond market
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the international marketplace in which bonds are bought and sold, primarily through banks and stockbrokers
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foreign bond
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a bond sold outside the issuers country and denominated in the currency of the country in which it is issued
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eurobond
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a bond sold outside the issuer's home country but denominated in its own currency
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intracorporate financing
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funds provided from sources inside the firm (both the headquarters and subsidiaries) such as equity, loans, and trade credits
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fronting loan
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a loan between the parent and its subsidiary, channeled through a large bank or other financial intermediary
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tax haven
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a country hospitable to business and inward investment because of its low corporate income taxes
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multilateral netting
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strategic reduction of cash transfers within the MNE family through the elimination of offsetting cash flows
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transaction exposure
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the currency risk that firms face when outstanding accounts receivable or payable are denominated in foreign currencies
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translation exposure
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the currency risk that results when a firm translates financial statements denominated in a foreign currency into the functional currency of the parent firm, as part of consolidating international financial results
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consolidation
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the process of combining and integrating the financial results of foreign subsidiaries into the financial statements of the parent firm
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economic exposure
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the currency risk that results from exchange rate fluctuations affecting the pricing of products, the cost of inputs, and the value of foreign investments
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spot rate
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the exchange rate applicable to the trading of foreign currencies in which the current rate of exchange is used and delivery is considered immediate
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forward rate
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the exchange rate applicable to the collection or delivery of a foreign currency at some future date
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direct quote
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the number of units of the domestic currency needed to acquire one unit of the foreign currency (also known as the normal or American quote)
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indirect quote
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the number of units of the foreign currency obtained for one unit of the domestic currency (also known as the reciprocal or European/Continental terms)
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hedgers
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currency traders who seek to minimize the risk of exchange rate fluctuations, often by buying forwards or similar financial instruments
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speculators
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currency traders who seek profits by investing in currencies with the expectation that they will rise in value in the future
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