Term
| Transactional-cost Analysis |
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Definition
| Framework that uses the comparative costs of running the operation to determine whether to adopt a high-control or low-control mode of entry to a market |
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Term
| Transaction-specific Assets |
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Definition
| Assets that are valuable for only a very narrow range of applications |
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Term
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Definition
| Exporting in which an organization uses an intermediary based in its home market to do the exporting |
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Term
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Definition
| Exporting in which the organization enters an agreement with another local or foreign organization in which the partner will use its distribution network to sell the exporter’s goods |
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Term
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Definition
| Exporting in which the organization sets up its own export organization within the organization and relies on an intermediary based in a foreign market |
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Term
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Definition
| Exporting in which the organization uses the overseas distribution network of another local or foreign organization for selling its goods in the foreign market |
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Term
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Definition
| Contractual transaction where the organization, the licensor, offers some propriety assets to a foreign organization, the licensee, in exchange for royalty fees |
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Definition
| Organization that gives the franchisee the right to use its trade names, business models and know-how in a given territory for a specific time in return for payment |
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Term
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Definition
| Organization that pays a franchisor for the right to use its trade names, business models and know-how in a given territory for a specific time |
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Definition
| Franchisor gives a master franchise to a local entrepreneur who, in turn, sells local franchises within his or her territory |
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Term
| Cooperative Joint Venture |
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Definition
| Agreement between the partners to collaborate, that does not involve any equity investments |
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Term
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Definition
| Arrangement where the partners agree to raise capital in proportion to the equity stakes agreed upon |
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Term
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Definition
| Market entries by buying existing organizations |
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Term
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Definition
| Market entries by starting new operations from scratch |
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Term
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Definition
| Partnership between businesses with the purpose of achieving common goals while minimizing risk, maximizing leverage, and benefiting from those facets of their operations that complement each other |
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Term
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Definition
| Cultural and economic knowledge generated in markets the organization already operates in that are similar to the target market |
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