Flashcard Set Preview
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| 1 |
what are the basic entry decisions?
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-which markets to enter? (weight costs, benefits, risks)
-timing of entry? (timing is critical)
-scale...
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| 2 |
which foreign markets?
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-evaluate markets for profit potential
-balance benefits, costs, risks
-size of market, present...
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| 3 |
timing of entry?
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-timing of entry into a foreign market is critical
-first mover advantages: establishing brand...
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| 4 |
scale of entry?
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-small scale- allows a firm to learn about a foreignmarket, gather information about a foreign...
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| 5 |
exporting: advantages and disadvantages
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-advantages- avoids costs of establishing manufacturing operations; helps a firm achieve experience...
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| 6 |
turnkey projects: advantages and disadvantages
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-pros: know how to assemble and run a technoligcally complex process = valuable asset; attractive...
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licensing: pros and cons
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-pros: licensee puts up necessary capital; avoid developmental costs and risks; firm possesses...
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| 8 |
franchising: pros and cons
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-pros- firm is relieve of costs and risks; a service firm can build market presence quickly...
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| 9 |
joint ventures: pros and cons
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-pros- local partners knowledge of host country; sharing costs and risks with local partner;...
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| 10 |
wholly owned subsidiaries: pros and cons
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-pros- reduces risk of losing control of core competence; tight control over operations; realize...
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| 11 |
how do firms establish wholly owned subsidiaries?
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1) set up a new operation in that country (greenfield venture)
2) acquire an established firm...
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| 12 |
greenfield veture: pros and cons
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-pros- ability to build subsidiary it wants; transferring products, competencies, skills, strategies,...
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| 13 |
acquisitions: pros and cons
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-pros- firm rapidly builds presense in target foreign market; preempt competito; less risky...
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