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Principals#4
| Question | Answer |
|---|---|
| What are 4 foreign operation decision (sub-decision) | 1,where (which country?) 2,why (it´s motives) 3,when (timing) 4,how (cost,risk,..) |
| What are two international entry mode choices | 1, Non-equity (without ownership) 2,Equity/FDI (with ownership) |
| What are Non-equity choices to join a foreign market (4) | 1, Exporting 2, Licensing 3, Franchising 4,other |
| What are Equity/FDI choices to join a foreign market (2) | 1,Joint veture 2, Wholly owned direct investment |
| What barriers to exporting (3) | 1, foreign business environment 2,trade barriers (including lack of market information & experience) 3,Differences in methods of promotion & distribution |
| What are advantages of export (4) | 1,economy of scales 2,avoids cost of new investment in host country 3,low exposure to political risk 4,low exposure to foreign exchange risk |
| What are disadvantages of export (4) | 1, tariff & non-tariff barriers 2,high transport costs 3,limited contac with customers & end-users 4,reliance on intermediaries |
| What are 3 key factors of Importing(Global sourcing) | 1,Technological advange in communications (faster & cheaper communication) 2,Falling costs of internation business (abolishmend of barriers,..) 3,Enterpreneurship & rapid economic transformation in emerging markets (development of suppliers) |
| What does 1,reshoring 2,nearshoring mean | 1,reshoring return of a business process or entire facility to home country 2,nearshoring offshoring or outsourcing into a nearby country, often with sharinga border with the home country |
| What is inbound & outbound licenses | 1,inbound licensing obtaining a licence from company to use its intellectual property 2,outbound licensing granting a licence for another party to use our intellectual property |
| What are 4 motives for Foreign direct investment (FDI) | 1,Market-seeking motives 2,Resource-seeking motives 3,Asset-seeking motives 4,Efficiency-seeking motives |
| What are characteristics of FDI (3) | 1, most advanced and complex 2,the riskiest form of investement 3,establishing plants or different facilities in foreign coutries |
| What are 3 types of FDI | 1,Greenfield investment completly new facilities 2,Brownfield investment-Acquisition purchase of assets,shares or equity of an existing company or facility 3,Brownfield investment-Merger unification with foreign company into one bigger company |
| What are differences between Equity JV & Strategic alliance | In strategic alliance partners is latter a non-equity cooperation (do not invest or commit equity in the alliance) |
| When do we speak about wholly-owned direct investment (2) | 1, when foreign investor retains 100% ownership in the entity 2, offers highest level of control over operation, with higher commitment & risk |
Created by:
semester1.IBWL
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