SOLVE FOR-EX
Name for protection against big rate movements
What is hedging?
Industries with big economies of scale or capital needs
What are center industries?
Entry mode with lowest investment and risk
What is exporting?
Term for the middle-men in an economy
What are intermediaries?
Document with buyer & seller info, description, price, terms
What is the commercial invoice?
Forward trades in standard amounts on exchanges
What are futures contracts?
Industries needing flexibility or local knowledge
What are periphery industries?
Entry mode that builds an operation from the ground up
What is greenfield?
Term when middle-men are weak
What are institutional voids?
Validation of where goods were produced
Bonds where issuer, buyer, and currency are all different
What are Eurobonds?
Reason companies with domestic saturation go abroad
What is market-seeking?
Entry modes when you need control over the full value chain
What are acquisition & greenfield?
Wholesalers, distributors, and retailers
What are product market intermediaries?
What is the packing list?
Bonds that come in musharakah, murabaha, and ijara types
What are Sukuk bonds?
Reason companies with limited input availability go abroad
What is resource-seeking?
Entry modes that risks IP leakage
What are licensing & franchising?
What are human talent intermediaries?
Form required for controlled goods
What is an export license?
Places like Luxembourg, Hong Kong, Cayman Islands
What are offshore financial centers?
Reason companies with huge economies of scale go abroad
What is efficiency-seeking?
Entry mode favored when regulations are hard to tackle
What is joint venture?
Banks, investment funds, exchanges
What are financial intermediaries?
A contract to transport goods
What is a bill of lading or air waybill?