a multilateral trading system and the organization underpinning this system since 2005.
What is the WTO
100
Firms with fewer than 500 employees.
What are SMEs
100
the benefits that a firm reaps from the features specific to a place.
What are location-specific advantages
100
the transfer of the control of operations and management from one firm to another, the former becoming a unit of the latter.
What is an acquisition
100
Strategy that relies on the development and distribution of standardized products worldwide to reap the maximum benefits from low-cost advantages.
What is global standardization strategy
200
A multilateral agreement governing the international trade of goods (merchandise).
What is GATT (General Agreement on Tariffs and Trade)
200
Firms that attempt to do business abroad from inception
What are Born Global Firms
200
the location-specific advantages that arise from the clustering of economic activities in certain locations.
What is agglomeration
200
a business strategy in which each partner in an alliance holds stocks in the other firm
What is cross-shareholding
200
Strategy that emphasizes duplicating home-based competencies in foreign countries.
What is home replication strategy
300
a crucial principle of a multilateral trading system, which prevents a country from making distinctions in trade among its trading partners
What is nondiscrimination
300
a way for SMEs to reach overseas customers by exporting through domestic-based export intermediaries.
What are indirect exports
300
the benefits that accrue to firms that enter a market first, and which later entrants do not enjoy.
What is first-mover advantage
300
a combination of the operations and management of two firms to establish a new legal entity
What is a merger
300
the need to be responsive to different customer preferences around the world.
What is local responsiveness
400
a group of countries that remove trade barriers among themselves.
What is an FTA (free trade area)
400
a model of internationalization that asserts that a firm must go through a slow, step-by-step process in order to internationalize its business
What is the stage model
400
The practice of exporting products at prices that are below what it costs to manufacture them, with the intent to raise prices after eliminating local rivals.
What is dumping
400
refers to a situation in which alliance partners aim to learn the other firm’s “tricks” as fast as possible.
What is learning race
400
a charter to be responsible for one MNE function throughout the world.
What is worldwide or global mandate
500
a free trade agreement between Canada, Mexico, and the United States.
What is NAFTA
500
a financial contract that states that the importer’s bank will pay a specific sum of money to the exporter upon delivery of the merchandise.
What is a letter of credit
500
A wholly owned subsidiary is created by building new factories and offices from scratch.
What is a green-field operation
500
refers to a manager’s exaggerated pride or overconfidence in one’s capabilities.
What is hubris
500
knowledge that is non-codifiable, and its acquisition and transfer require hands-on practice