Foundations & Key Decisions
Name the term that describes the overall approach a firm uses to begin selling and operating in a foreign market.
Market entry method
Which timing strategy involves entering before competitors to build brand loyalty and first-mover advantage?
Early entry / First-mover strategy
Identify the simplest and most common starting point for international operations.
Exporting
Which contractual method lets a firm earn royalties by giving another the right to use its patents, trademarks or brand name?
Licensing
What is the term for 100 percent foreign ownership and control of operations abroad?
Foreign Direct Investment (FDI)
Identify the three core questions every company must answer before choosing an entry method – relating to control, risk, and cost.
Control – Risk – Cost (Three Fundamental Questions)
Name the timing approach where a firm waits to observe pioneers’ results before entering.
Late entry strategy
Which form of exporting uses home-country intermediaries so the firm has no direct contact with foreign buyers?
Indirect exporting
Identify the agreement that transfers an entire business system – including brand, training, and operations – for fees and royalties.
Franchising
Which partnership creates a new independent company shared by two or more firms to enter a market?
Joint venture (JV)
List the two types of factors that influence the selection of an entry method.
Company-specific and external factors
Which adaptive timing strategy adjusts entry according to product readiness or technology cycles?
Dynamic timing
Name the arrangement where a smaller “rider” company uses a larger “carrier” company’s international network.
Piggybacking
What is the term for outsourcing production abroad while keeping ownership of the brand?
Contract manufacturing
Identify the cooperative arrangement without creating a new entity, formed to share resources and goals.
Strategic alliance (non-equity)
What is the structured process used to evaluate and select target countries, starting with parameter preparation and ending with final selection?
Market selection process
What do we call an entry characterized by high resource commitment, rapid expansion, and high visibility?
Large-scale entry
Which specialized organizations act as export agents or distributors handling logistics and documentation for manufacturers?
Export Management Companies (EMCs)
Which entry mode involves operating another firm’s business for a fee, often seen in the hotel industry?
Management contract
Which alliance type involves partners buying shares in each other or a joint entity?
Equity strategic alliance
Give two examples of host-country constraints that might limit full foreign ownership or access to a market.
Legal restrictions and trade barriers (e.g., embargoes or ownership limits)
Define the concept that measures a firm’s degree of commitment abroad in terms of resources, time and control.
International involvement
State the main reason firms move from indirect to direct exporting as their confidence grows.
To gain greater control and direct market feedback
Name the project type where a contractor designs, builds, and equips a complete facility, delivering it fully operational to the client.
Turnkey project
According to the lecture, name the three main driving forces behind the global rise of strategic alliances in modern industries.
High R&D costs and limited resources; rapid technology change and shorter product life cycles; need for market access and government collaboration (plus competition management through combined capabilities).