Term
| Two modes of entry strategy |
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Definition
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Term
| 4 types of non-equity modes |
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Definition
| exports, direct exports, indirect exports, contractual agreements |
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Term
| three contractual agreements |
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Definition
| licensing, turnkey, contractual manufacturing |
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Term
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Definition
| joint venture/strategic alliance; wholly owned subsidiaries; greenfield investments; acquisitions |
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Term
| 3 types of JV's and Strategic Alliances |
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Definition
| Minority JV; 50-50 JV's; Majority JV's |
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Term
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Definition
| lower per unit cost; overcome domestic market size limitations; offset market cyclicality/ low asset exposure to political risk; flexibility of switching to geographical direction of products; concentration of resources on production |
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Term
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Definition
| trade barrier costs; lower control over market/ local government obj.; transportation costs; locating and maintaining relationships with importers; less control over distribution; conflict between exporters' and importers' goals; inability to learn how to operate overseas |
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Term
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Definition
| exclusive/ non-exclusive/ cross-licensing |
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Term
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Definition
| extends product life cycle/ allows penetration of small markets especially those with high trade barriers/ builds goodwill/ reduces piracy loss/ requires limited resources/ quick entry |
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Term
| disadvantages of licensing |
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Definition
| lost control over technology/ quality control/ gov't restrictions/ development of potential competitors/ opportunity costs/ post-agreement costs |
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Term
| two types of turnkey projects |
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Definition
| self-engineered/ construction to specification |
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Term
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Definition
| can earn a return on knowledge asset/ less risky than conventional FDI |
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Term
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Definition
| lack of long-term presence in the foreign country/ may create a competitor/ selling process technology may be selling competitive advantage as well |
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Term
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Definition
| what type? What can we learn? How to manage? |
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Term
| SA 7 levels of interaction from lowest to highest |
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Definition
1.Informal cooperation agreements
2.Licensing/franchising arrangements
3.Cross-licensing arrangements
4.R&D Consortia
5.Minority on-way investments
6.Minority two-way investments
7.Joint Ventures |
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Term
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Definition
sharing of resources and risks
host government requirements
overcoming strong nationalistic sentiments
quicker entry
benefit from partner's local knowledgw |
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Term
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Definition
learning from one another
attain global scale economies
rising R&D costs
industry convergence |
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Term
| Main risk of strategic alliance |
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Definition
| partner opportunism and loss of competitive edge |
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Term
| Prevention of partner opportunism |
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Definition
walling off critical technology
establishing contractual safeguards
swapping skills and technologies
seeking credible commitments |
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Term
| US CEO's two main reasons for partnering |
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Definition
| increase sales of existing products and improving competitive positions |
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Term
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Definition
| Capability/ Compatibility/Commitment/control |
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