Term
| What are the 6 pro-active reasons companies go international |
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Definition
| Profit Reasons; Unique product or technology; Managerial urge; Tax benefits; Economies of Scale; Diversification |
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Term
| What are the 6 pro-active reasons companies go international |
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Definition
| Profit Reasons; Unique product or technology; Managerial urge; Tax benefits; Economies of Scale; Diversification |
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Term
| What are the reactive reasons companies go international |
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Definition
| Domestic competitive pressures; Declining domestic sales; Saturated domestic markets; Overproduction/Excess capacity; Protectionism Abroad |
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Term
| What are the indications of a stage 1 firm? |
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Definition
| Occasional exporter; Company has no export dept or export division. |
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Term
| What stage is a partially interested & involved firm? |
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Definition
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Term
| What are the indications of a stage 2 firm? |
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Definition
| the company actively looks for foreign markets; exports are handled through the company's own export department. |
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Term
| What stage is an experienced and highly involved firm? |
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Definition
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Term
| What is a stage 3 company? |
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Definition
| Foreign Direct Investment. |
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Term
| What are the modes of foreign markets entry? |
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Definition
| 1. Export Mode 2. Contractual Arrangements Mode 3. Investment Mode. |
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Term
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Definition
| Produced domestically, then try and find a foreign buyer. |
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Term
| What is the investment mode |
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Definition
| The product is produced in the country where it is sold (a foreign market) |
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Term
| What is contractual arrangements mode? |
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Definition
| Something intangible is sold - intellectual property rights for royalty. Product know-how |
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Term
| What is indirect exporting? |
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Definition
| Indirect exporting: company RELIES on intermediaries to perform most functions involved in export process. |
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Term
| What is direct exporting? |
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Definition
| Company does not rely on intermediaries. |
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Term
| What are characteristics of contractual arrangements |
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Definition
| Focus is on licensing or know-how. |
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Term
| What are examples of contractual arrangements mode? |
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Definition
| Licensing; franchising; mgmt contracts; turnkey operations |
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Term
| What are modes of foreign markets entry, investment entry mode? |
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Definition
| FDI; Joint Ventures; Strategic Alliances |
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