Entrepreneur
Founders and owners of new businesses or managers of existing firms who identify and exploit new opportunities.
Entrepreneurship
The identification and exploitation of previously unexplored opportunities.
International entrepreneurship
A combination of innovative, proactive, and risk-seeking behavior that crosses national borders and is intended to create wealth in organizations.
Small- and medium-sized enterprise (SME)
Firm with fewer than 500 employees in the United States and with fewer than 250 employees in the European Union.
Born global firm
A start-up company that attempts to do business abroad from inception.
Direct export
The sale of products made by firms in their home country to customers in other countries.
Export intermediary
A firm that acts as a middleman by linking domestic sellers and foreign buyers that otherwise would not have been connected.
Franchising
Firm A's agreement to give Firm B the rights to use A's proprietary assets for a royalty fee paid to A by B. This is typically done in service industries.
Indirect export
A way for SMEs to reach overseas customers by exporting through domestic-based export intermediaries.
Letter of credit (L/C)
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.
Licensing
Firm A's agreement to give Firm B the rights to use A's proprietary technology (such as a patent) or trademark (such as a corporate logo) for a royalty fee paid to A by B. This is typically done in manufacturing industries.
Sporadic (or passive) exporting
The sale of products prompted by unsolicited inquiries from abroad.
Stage model
Model of internationalization that involves a slow step-by-step (stage-by-stage) process a firm must go through to internationalize its business.