market entry strategy
An organizational strategy for entering a foreign market
global outsourcing
engaging in the international division of labor so as to obtain the cheapest sources of labor and supplies regardless of country
exporting
an entry strategy in which the organizaiton maintains it sproduction facilities within its home country and transfers its products for sale in foreign countries
counter trade
the barter of products for other products rather than their sale for currency
licensing
an entry strategy in shich an organization in one country makes certain resources available to compnaies in another in otder to participate in the production and sale of its products abroad
franchising
a form of licensing in which an organization provides its foreign franchisees with a complete package of materials and services
direct investing
an entry strategy in which the organization is involved in managing its production facilities in a foreign country
joint venture
a variation of direct investment in which an organization shares costs and risks with another firm to build a manufacturing facility develop new products, or set up a sales and distribution network
wholly owned foreign affiliate
a foreign subsidiary over which an organizaiton has complete control
greenfield venture
the most risky type of direct investment, whereby a company builds a subsidiary from scratch in a foreign country
international management
the management of business operations conducted in more than one country
infrastructure
a country's physical facilities that support economic activities
political risk
a company's risk of loss of assets, earning power or managerial control due to politically based events or actions by host governments
political instability
events such as riots, revolutions, or government upheavals that affect the operations of an international company
power distance
the degree to which people accept inequality in power anong institutions, organizations, and people
uncertainty avoidance
a value characterized by people's intolerance for uncertainty and ambiguity and resulting support for beliefs that promise certainty and conformity
individualism
preference for aloosely knit social framework in which individuals are expected to take care of themselves
collectivism
a preference for a tightly knit social frame work in which individuals look after one sanother and organizaitons protect their members' interests
masculinity
a cultural preference for achievement, heroism, assertiveness, work centrality, and material success
femininity
a cultural preference for relationships cooperation, group decision making and quality of life
long-term orientation
greater concern for the future and high value on thrift and perseverance
shot-term orientation
aconcern with the past and present and a high value on meeting social obligations
ethnocentrism
a cultural attitude marked by the tendency to regard one's own culture as superior to others
most favored nation
a term describing a GATT clause that calls for memeber countries to grant other memeber countries the most vaorable treatment they accord any country concerning imports and exports
euro
a single European currency that replaced the currencies of 12 European nations
multinational corporation (MNC)
An organization that receives more than 25 percent of its total sales revenues from operations outside the parent company's home country also called global corporation, or transnational corporation
cultural intelligence (CQ)
a person's ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses
culture shock
feelings of confusion, disorientation , and anxiety that result from being immersed in a foreign culture