Chapter 10 Flashcards
Build-operate-transfer (BOT) agreement
A nonequity mode of entry used to build a longer-term presence by building and then operating a facility for a period of time before transferring operations to a domestic agency or firm.
Co-marketing
Efforts among a number of firms to jointly market their products and services.
Country-of-origin effect
The positive or negative perception of firms and products from a certain country.
Cultural distance
The difference between two cultures along identifiable dimensions such as individualism.
Equity mode
A mode of entry (JV and WOS) that indicates a relatively larger,harder-to-reverse commitment.
First-mover advantage
Benefits that accrue to firms that enter the market first and that late entrants do not enjoy.
Greenfield operation
Building factories and offices from scratch (on a proverbial piece of “greenfield” formerly used for agricultural purposes).
Institutional distance
The extent of similarity or dissimilarity between the regulatory, normative, and cognitive institutions of two countries.
Joint venture (JV)
A new corporate entity created and jointly owned by two or more parent companies.
Late-mover advantage
Benefits that accrue to firms that enter the market later and that early entrants do not enjoy.
LLL advantages
A firm’s quest of linkage (L) advantages, leverage (L) advantages, and learning (L) advantages. These advantages are typically associated with multinationals from emerging economies.
Location-specific advantage
The benefits a firm reaps from the features specific to a place.
Mode of entry
Method used to enter a foreign market.
Non-equity mode
A mode of entry (exports and contractual agreements) that reflects relatively smaller commitments to overseas markets.
Research and development (R&D) contract
An outsourcing agreement in R&D between firms.
