Term
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Definition
| the theory that companies will favor foreign direct investment over such nonequity operating forms as licensing arrangements so that potential competitors will be less likely to gain access to proprietary information |
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Term
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Definition
| the joining together of several entities, such as companies or governments, in order to strengthen the possibility of achieving some objective. |
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Definition
| a situationi in which a cooperating company takes an equity position (almost always a minority) in the company with which it has a collaborative arrangement. |
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Definition
| control through selfhandling of foreign operations, primarily because such control is less expensive to deal with in the same corporate family than to contract with an external organization |
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Term
| resource-based view (of the firm) |
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Definition
| a perspective that holds that each company has a unique combination of competencies |
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Term
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Definition
| horizontal constraints that follow from having specific employees only do specific jobs in specific units and the vertical constraints that separate employees into specific levels of the heirarchy. |
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Definition
| the situation in which decision making is done at the home office rather than at the country level |
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Term
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Definition
| regulate the allocation and utilization of resources |
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Term
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Definition
| linking or integrating activities into a unified system |
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Term
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Definition
| the situation in which decisions tend to be made at lower levels in a company or at the country-operating level rather than at headquarters |
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Term
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Definition
| an organization that contains separate divisions based around individual product lines or based on the geographic areas of the markets served |
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Term
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Definition
| an organization that is structured according to functional areas of business |
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Term
| horizontal differentiation |
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Definition
| how the company specifies, divides, and assigns the set of organizational tasks |
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Term
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Definition
| an organizational structure in which foreign units report (by product, function, or area) to more than one group, each of which shares responsibility over the foreign unit |
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Term
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Definition
| a structure that integrates various aspects of the other forms of structures |
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Term
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Definition
| a situation in which a group of companies is interrelated and in which the managemnet of the interrelation is shared among so-called equals |
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Term
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Definition
| how the company defines the formal structure that specifies the framework for work, develops the systems that coordinate and control what gets done, and cultivates a set of shared values and ideals among employees around the world |
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Term
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Definition
| the values, beliefs, business principles, traditions, ways of doing things, and nature of internal work environment within a company |
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Term
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Definition
| the formal arrangement of roles, responsibilities, and relationships within an organization |
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Term
| unity-of-command principal |
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Definition
| holds that an unbroken chain of command and communication should flow from the senior executive to the worker on the factory floor |
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Term
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Definition
| determining where in the heirarchy the authority to make decisions stands |
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Term
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Definition
| a form of company that acquires strategic capabilities by creating a temporary network of independent companies, suppliers, customers, and even rivals |
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Term
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Definition
| the stragtegy of pricing at a desired margin over cost |
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Term
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Definition
| the course--physical path or legal title--that goods take between production and consumption |
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Term
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Definition
| a tool used to discover why a company's sales of a given product are less than the market potential in a country; the reason may be a usage, competition, product line, or distribution gap |
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Term
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Definition
| available for anyone to use |
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Term
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Definition
| the handling of goods through unofficial distributors |
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Term
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Definition
| a strategy of introducing a product at a low price to induce a maximum number of consumers to try it |
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Term
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Definition
| promotion relying on mass media (as opposed to push which uses direct selling techniques) |
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Term
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Definition
| promotion which uses direct selling techniques |
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Term
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Definition
| charging a high price for a new product by aiming first at consumers willing to pay that price and then progressively lowering the price |
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Term
| acceptable quailty level (AQL) |
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Definition
| a concept of quality control whereby managers are willing to accept a certain level of production defects, which are dealt with through repair facilities and service centers |
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Term
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Definition
| the use of the internet to join together suppliers with companies and companies with customers |
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Term
| electronic data interchange (EDI) |
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Definition
| the electronic movement of money and information via computers and telecommunications equipment |
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Term
| enterprise resource planning (ERP) |
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Definition
| solfware that can link information flows from different parts of a business and from different geographic areas |
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Term
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Definition
| the use of the internet to link a company with outsiders |
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Term
| foreign trade zones (FTZs) |
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Definition
| a government designated area in which goods can be stored, inspected, or manufactured without being subject to formal customs procedures until they leave the zone |
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Term
| International Organization for Standardization (ISO) |
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Definition
| formed in Geneva in 1947 to facilitate the international coordination and unification of industrial standards. partnered with IEC (international electrotechnical commission) |
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Term
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Definition
| the use of the internaet to link together the different divisions and functions inside a company |
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Term
| logistics (or materials management) |
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Definition
| that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of comsumption, to meet customers' requirements; sometimes called materials management |
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Term
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Definition
| any manufacturing that takes place outside of a company's home country. a type of foreign direct investment |
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Term
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Definition
| where one company contracts with another company to perform certain functions, including manufacturing and back office operations. may be done in or close to the company's home country (nearshoring) or in another country (offshoring) |
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Term
| private technology exchange (PTX) |
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Definition
| an online collaboration model that brings manufacturers, distributors, value-added resellers, and customers together to execute trading transactions and to share information about demand production, availability, and more |
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Term
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Definition
| meeting or exceeding the expectations of a customer |
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Term
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Definition
| a highly focused system of quality control that uses data and rigorous statistical analysis to identify "defects" in a process or product, reduce variability, and achieve as close to zero defects as possible |
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Term
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Definition
| the strategy that a company pursues in purchasing materials, components, and final products; sourcing can be from domestic and foreign locations and from inside and outside the company |
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Term
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Definition
| the coordination of materials, information, and funds from the initial raw material supplier to the ultimate customer |
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Term
| total quality managment (TQM) |
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Definition
| the process that a company uses to achieve quality, where the goal is elimination of all defects |
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Term
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Definition
| the control of the different stages as a product moves from raw materials through production to final distribution |
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Term
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Definition
| the elimination of defects, which results in the reduction of manufacturing costs and an increase in consumer satisfaction |
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Term
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Definition
| income of a CFC that is derived from the active conduct of a trade or business, as specified by the U.S. Internal Revenue Code |
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Term
| American Depository Receipt (ADR) |
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Definition
| a negotiable certificate issued by a U.S. bank in the United States to represent the underlying shares of a foreign corporation's stock held in trust at a custodian bank in the foreign country |
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Term
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Definition
| A price between two companies that do not have an ownership interest in each other |
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Term
| controlled foreign corporation (CFC) |
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Definition
| a foreign corporation of which more than 50% of the voting stock is owned by U.S. shareholders (taxable entities that own at least 10% of the voting stock of the corporation) |
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Term
| economic (or operating) exposure |
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Definition
| the foreign-exchange risk that international businesses face in the pricing of products, the source and cost of inputs, and the location of investments |
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Term
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Definition
| a bond sold in a country other than the one in whose currency it is denominated |
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Term
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Definition
| a loan, line of credit, or other form of medium-or long-term credit on the Eurocurrency market that has a maturity of more than one year |
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Term
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Definition
| any currency that is banked outside of its country of origin |
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Term
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Definition
| an international wholesale market that deals in eurocurrencies |
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Term
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Definition
| dollars banked outside the U.S. |
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Term
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Definition
| the market for shares sold outside the boundaries of the issuing company's home country |
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Term
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Definition
| a bond sold outside the borrower's country but denominated in the currency of the country of issue |
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Term
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Definition
| a combination of domestic bond and Eurobond that is issued simultaneously in several markets and that must be registered in each national market according to that market's registration requirements |
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Term
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Definition
| the degree to which a firm funds the growth of the business by debt |
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Term
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Definition
| an operational strategy that involves either delaying collection of foreign-currency receivables if the currency is expected to strengthen or delaying payment of foreign-currency payables when the currency is expected to weaken; the opposite of a lead strategy |
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Term
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Definition
| an operational strategy that involves either collecting foreign currency recievables before they are due when the currency is expected to weaken or paying foreign-currency payables before they are due when the currency is expected to strengthen; the opposite of a lag strategy |
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Term
| London Inter-Bank Offered Rate (LIBOR) |
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Definition
| the interest rate for large interbank loans of Eurocurrencies |
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Term
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Definition
| a common measure of the size of a stock market, which is computed by multiplying the total number of shares of stock listed on the exchange by the market price per share |
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Term
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Definition
| the sum of the present values of the annual cash flows minus the initial investment |
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Term
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Definition
| the transfer of funds from subsidiaries in a net payable position to a central clearing account and from there to the accounts of the net receiver subsidiaries |
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Term
| offshore financial centers |
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Definition
| cities or countries that provide large amounts of funds in currencies other than their own and are used as locations in which to raise and accumulate cash |
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Term
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Definition
| the provision of financial services by banks and other agents to nonresidents |
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Term
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Definition
| the number of years required to recover the initial investment made |
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Term
| Subpart F (or passive) income |
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Definition
| income of a CFC that comes from sources ofhter than those connected with the active conduct of a trade or business, such as holding company income |
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Term
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Definition
| cooperation by a lead bank and several other banks to make a large loan to a public or private organization |
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Term
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Definition
| countries with low income taxes or no taxes on foreign source income |
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Term
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Definition
| foreign-exchange risk arising because a company has outstanding accounts recievable or accounts payable that are denominated in a foreign currency |
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Term
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Definition
| foreign-exchange risk that occurs because the parent company must translate foreign-currency financial statements into the reporting currency of the parent country |
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Term
| balance sheet compensation plan |
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Definition
| MNEs use this to manage expatriate accounts. it develops a salary structure that equalizes purchasing power accross countries so expatriates have the same living standard in their foreign posting that they had at home--no matter which country their assignment takes them |
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Term
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Definition
| a process by which both labor and management participate in the management of a company |
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Term
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Definition
| a generalized trauma one experiences in a new and different culture because of having to learn and cope with a vast array of new cues and expectations |
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Term
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Definition
| noncitizen of the country in which they are working |
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Term
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Definition
| the premature return of expatriate manager to the home country |
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Term
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Definition
| expatriate employees who are citizens of the country in which the company is headquartered |
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Term
| human resource management (HRM) |
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Definition
| the primary staffing function of the organization. it includes the activities of human resource planning, recruitment, selection, performance appraisal, compensation, and retention |
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Term
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Definition
| an expatriate's return to his or her home country |
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Term
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Definition
| expatriate employees who are neither citizens of the country in which they are working nor citizens of the country where the company is headquartered |
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