Global Business Today Chapter 12-17
Latest Update 2024/2025
2. What are the risks associated with pursuing an acquisition-based entry strategy? How can these risks
be reduced? (Hill, 385) - ANSWER-Hill, pgs.383-384
3, When might establishing a greenfield venture be the best vehicle for entering a foreign market? (Hill,
385) - ANSWER-Hill, pg. 385
Barter - ANSWER-The direct exchange of goods or services between two parties without a cash
transaction
Bill of Exchange - ANSWER-An order written by an exporter instructing an importer, or an importer's
agent, to pay a specified amount of money at a specified time
Bill of Lading - ANSWER-A document issued to an exporter by a common carrier transporting
merchandise. It serves as a receipt, a contract, and a document of title
Buyback - ANSWER-Agreement to accept a percentage of a plant's output as payment for contract to
build a plant
Channel Length - ANSWER-
Channel Quality - ANSWER-The expertise, competencies, and skills of established retailers in a nation
and their ability to sell and support the products of international businesses
Concentrated Retail System - ANSWER-
Contributor Factory - ANSWER-A factory that serves a specific country or world region
Controls - ANSWER-The metrics used to measure the performance of subunits and make judgements
about how well managers are running those subunits
Core Competence - ANSWER-Firm skills that competitors cannot easily match or imitate
Corporate Culture - ANSWER-The organizations norms and value systems
Countertrade - ANSWER-The trade of goods and services for other goods and services
Country of Origin Effects - ANSWER-A subset of source effects, or the extent to which the place of
manufacturing influences product evaluations
Downstream Supply Chain - ANSWER-The portion of the supply chain from the production facility to the
end-consumer
Draft - ANSWER-An order written by an exporter telling an importer what and when to pay
Economies of Scale - ANSWER-Cost advantages associated with large-scale production
Elastic - ANSWER-A small change in price produces a large change in demand
, Global Business Today Chapter 12-17
Latest Update 2024/2025
Ethnocentric Staffing Policy - ANSWER-A staffing approach withing the MNE in which all key
management positions are filled by parent-country nationals
Exclusive Distribution Channel - ANSWER-
Expatriate Failure - ANSWER-The premature return of an expatriate manager to the home country
Expatriate Manager - ANSWER-A national of one country appointed to a management position in
another country
Experience Curve - ANSWER-Systematic production cost reductions that occur over the life of a product
Experience Curve Pricing - ANSWER-Aggressive pricing designed to increase volume and help the firm
realize experience curve economies
Export Management Company (EMC) - ANSWER-Export specialists who act as an export marketing
department for client firms
Export-Import Bank - ANSWER-Agency of the U.S. government whose mission is to provide aid in
financing and facilitate exports and imports
Ex-Im Bank
Exporting - ANSWER-Sale of products produced in one country to residents of another country
First-Mover Advantages - ANSWER-Advantages accruing to the first to enter a market
First-Mover Disadvantages - ANSWER-Disadvantages associated with entering a foreign market before
other international businesses
Flexible Machine Cells - ANSWER-Flexible Manufacturing technology in which a grouping of various
machine types, a common materials handler, and a centralized cell controller produce a family of
products
Flexible Manufacturing Technology - ANSWER-Manufacturing technology designed to improve job
scheduling, reduce setup time, and improve quality control
Fragmented Retail System - ANSWER-
Franchising - ANSWER-A specialized form of licensing in which the franchiser sells intangible property to
the franchisee and insists on rules to conduct the business
Geocentric Staffing Policy - ANSWER-A staffing policy where the best people are sought for key jobs
throughout an MNE, regardless of nationality
Global Distribution Center - ANSWER-A facility that positions and allows customization of products for
delivery to worldwide wholesalers or retailers, or directly to consumers anywhere in the world; also
called a global distribution warehouse
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