Chapter 12 notes - and hand over the “key” when the...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 12 Entering Foreign Markets Timing of entry - entry is early when a firm enters a foreign market before other foreign firms and late when a firm enters after other international businesses have established themselves First-mover advantage - advantages accruing to the first to enter a market First-mover disadvantages - associated with entering a foreign market before other international businesses Pioneering costs - costs that an early entrant has to bear that a later entrant can avoid, such as the time and effort in learning the rules, failure due to ignorance, and the liability of being a foreigner Exporting - sale of products produced in one country to residents in another country Turnkey project - a project in which a firm agrees to set up an operating plant for a foreign client
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: and hand over the “key” when the plant is fully operational Licensing- occurs when a firm (the licensor) licenses the rights to produce its product, its production processes, or its brand name or trademark to another firm (the licensee); in return the licensor collects a royalty fee from the license Franchising- a specialized form of licensing in which the franchiser sells intangible property to the franchisee and insists on rules to conduct the business Joint venture- establishing a firm that is jointly owned by 2 or more otherwise independent firms Wholly owned subsidiary- a subsidiary in which the firm owns 100 percent of the stock...
View Full Document

This note was uploaded on 12/04/2011 for the course MKT 310 taught by Professor Tunga during the Summer '10 term at Michigan State University.

Ask a homework question - tutors are online