Chapter 7

Chapter 7 - Outline for Chapter 7-Multinational...

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Key Terms for the Chapter… Multinational Corporation- A corporation that owns manufacturing and/or marketing facilities in two or more countries Small Business Enterprise- Formally, in the United States, a business that meets the small business size standard of the Small Business Administration. Less formally, abroad, a small venture that is typically family-owned and fits into the entrepreneurial category of either a “lifestyle firm” or a foundation company that is severely limited in one or more of the traditional operating areas, typically in the distribution area. Joint Venture- A cooperative business arrangement that takes place between two or more firms that jointly owns a third firm. The newly created third firm is known as a joint venture, while the owner firms are called parent firms. Wholly Owned Facilities- A facility with a parent company owning 100% of its stock. Market Seeker- A firm that pursues business opportunities abroad to expand and conquer untapped and/or growing markets. Resource Seeker- A firm that expands business abroad for the purpose of searching for cheaper of higher-quality resources—from cheaper raw materials to skilled labor and anything in between. Knowledge Seeker- A firm that expands overseas in pursuit of new technologies and ideas, innovation, and research and development capabilities. Foreign Affiliate- That part of a multinational corporation located outside of a corporation’s home country. Internalization- The replication of world trade and marketplace conditions within the confines of one’s own company. Intrafirm Trade- International trade transactions that take place among firms that are owned by the same business entity. Green-field entry- The establishment of a wholly new corporation in a foreign country. Multilocal strategy- A firm’s future global business plan that is formulated to adapt to various local economic conditions in different countries. Trade Barriers-
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This note was uploaded on 04/25/2008 for the course IB 201 taught by Professor Engle during the Spring '07 term at Quinnipiac.

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Chapter 7 - Outline for Chapter 7-Multinational...

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