Chapter 10 Entering Foreign Markets

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1
institutional voids
Institutional conditions of a country lacking market-supporting infrastructure
2
location-specific advantages
the benefits a firm reaps from the features specific to a place
3
First-mover advantage
benefits that accrue to firms that enter the market first and that late entrants don't enjoy
4
Late-mover advantage
benefits that accrue to firms that enter market later and that early entrants don't enjoy
5
Scale of entry
the amount of resources committed to entering a foreign market
6
non-equity mode
A mode of entry (exports and contractual agreements) that tends to reflect relatively smaller commitments to overseas markets.
7
Equity mode
A mode of entry (JV and WOS) that indicates relatively larger, harder-to-reverse commitments
8
entry mode
a form of operation that a firm employs to enter foreign markets
9
Turnkey project
A project in which clienterm-22ts pay contractors to design and construct new facilities and train personnel.
10
Build-operate-transfer (BOT) agreement
A non-equity mode of entry used to build a longer-term presence by building and then operating a facility for a period of time before transferring operations to a domestic agency or firm.
11
Research and development (R&D) contract
outsourcing agreements in R&D between firms
12
co-marketing
efforts among a number of firms to jointly market their products and services
13
Joint Venture (JV)
new corporate entity created and jointly owned by two or more parent companies
14
Wholly owned subsidiary (WOS)
A subsidiary located in a foreign country that is entirely owned by the parent multinational.
15
Greenfield operation
Building factories and offices from scratch (on a proverbial piece of "green field" formerly used for agricultural purposes).
16
country-of-origin effect
positive or negative perception of firms and products from a certain country
17
LLL advantage
firm's quest of linkage, leverage, and, learning advantages. these advantages are typically associated with multinationals from emerging economies
18
reciprocity
an informal agreement based on mutual exchange of gratifications
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