Shared Flashcard Set

Details

Import Export SFSU IBUS 430
Non-Export Modes of Entry
12
Business
Undergraduate 4
12/18/2011

Additional Business Flashcards

 


 

Cards

Term
reasons for expanding a manufactuering company's operations into some form of overseas production
Definition
profit motive
Term
type of expansion: defensive
Definition
response to pressure from some outside source, as a foreign government, competition, or nationalistic-oriented buyers
Term
type of expansion: offensive
Definition
difference in attitude; done by choice and according to the plan
Term
alternative modes of entry
Definition
manufacturing, assembly, strategic alliance
Term
disadvantages of manufacturing facilities
Definition
large investment in capital, personnel problems, relations with government
Term
advantages of manufacturing facilities
Definition
control and flexibility, easier protection of trademarks, integration of worldwide production program
Term
advantages of assembling in foreign country using imported parts
Definition
cost saving in manufacturing at the home plant, value added and technology to remain at home
Term
strategic alliances:
Definition
companies from two or more countries forming long term collaborative arrangements.  licensing, contracting, and joint venture are activities between companies known as strategic alliances.  to enhance the long-run competitiveness of strategic partners.  both parties have something to offer
Term
strategic alliances: licensing
Definition

may involve technology, trademark, designs, knowledge, various payments and fees

 

advantages: ease and low cost

disadvantages: create porential competitor, loss of control, lack of flexibility

Term
strategic alliances: contracting manufacturing
Definition

contract to have a company's product manufactured by local manufacturer.

 

advantages: minimum investment; control over marketing

disadvantages: loss of manufacturing profit; create potential competitor; difficult to find good manufacturer

Term
strategic alliances: management contracting
Definition

local investors provides the capital for the enterprise, while the international marketer provides the know-how to manage the company

 

advantages: low risk way into foreign market; quick return

disadvantages: complex agreements with potential for conflict

Term
how to succeed in joint venture/strategic alliance
Definition
  1. top management must be continually involved
  2. meet frequently, and often informally
  3. use a matchmaker
  4. maintain independence
  5. allow no "sacrifice" deals
  6. have a monitor
  7. anticipate cultural differences
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