IB 303 #3
global
Companies using this strategy need to keep costs as low as possible and seek to control foreign country operations in order to minimize surplus and to improve efficiency.
pioneering costs
Costs an early entrant bears that later entrants avoid such as time and effort in learning the rules
core competencies
Firm skills that competitors cannot easily match or imitate
Jamaica Agreement
Floating exchange rates were deemed acceptable under
exporting
High transporting costs and trade barriers are disadvantages for ______
differentiation
In a ______ strategy, a product offers a unique attribute that makes customers think it is better or superior to competitors' products.
is determined by market forces.
In a floating exchange rate, the relative value of a currency:
offset
In a(n) _________ arrangement, the seller assists in marketing products in the buying country or allows the buying country's manufacturers to perform part of the exported product's assembly.
Bretton Woods
In this city in 1944, at the height of World War II, representatives from 44 countries met to design a new international monetary system.
turnkey
In this type of project, the contractor agrees to handle every detail of the project for a foreign client, including the training of operating personnel.
economies
Location _______ arise from developing value-creation activities in the best location for these activities, wherever that location is.
licensing
Low development costs and risk is an advantage of _______
management know-how
The competitive advantage of many service firms is based on _________
incentives
The devices used to reward appropriate managerial behavior
fixed ??
The gold standard was a ______ exchange rate system.
process
The manner in which decisions are made and work is performed within any organization
control
The metrics used to measure the performance of sub-units and make judgments about how well managers are running those sub-units
organizational culture
The values and norms shared among an organization's employees
EXIM Bank
This independent bank provides financial assistance to companies that export to foreign markets.
IMF
This is an international agency established in New Hampshire to watch over the economic activity of member countries.
Malaysia
This is one of the countries most affected by the Asian financial crisis in 1997.
barter
This is the oldest countertrade arrangement, involving the direct exchange of goods and services having equivalent values.
silver
This metal was used for international transactions prior to the implementation of the gold standard in 1875.
transnational
This strategy balances the need for local responsiveness with the need to keep costs low.
currency
When a tourist participates in the foreign exchange market, he or she changes one of these into another.
international
When companies generate most activity from their domestic countries, they are employing a(n) ______ strategy.
floating
When the foreign exchange market determines the relative value of a currency, a ________ exchange rate system exists.
floating
When the foreign exchange market determines the relative value of a currency, the country is adhering to a ______ system.
Jamaica
Where did IMF members meet to formalize the floating exchange rate regime after the collapse of the fixed exchange rate system?
International monetary system
Which of the following refers to the institutional arrangements that govern exchange rates?
Nixon
Who ended the U.S. dollar's gold convertibility and devalued U.S. dollars in 1971?
halal
______ refers to a certificate that ensures compliance with all Islamic dietary laws.
dollarization
______ refers to a process in which a country "adopts" another country's currency rather than issuing its own currency.
buyback
______ refers to an arrangement in which a firm builds a plant in a country and agrees to take a certain percentage of the plant's output as partial payment for the contract.
licensing
______ refers to an arrangement whereby a licensor grants the rights to intangible property to another entity for a specified time period.
exporting
______ refers to shipping a company's goods from its home country to a designated international location.
switch trading
______ refers to the use of a specialized third-party trading house in a countertrade arrangement.
export
_______ management companies are specialists that act as the export department of manufacturers that want to export their products.
franchising
_____________ refers to a specialized form of licensing in which the franchisor not only sells intangible property to the franchisee but also insists that the franchisee agree to abide by strict rules as to how it does business.
joint venture
A ______ establishes a firm that is jointly owned by two or more otherwise independent firms.
pegged
A ______ exchange rate means that the value of a currency is fixed to a reference country; the exchange rate between that currency and other currencies is determined by the reference rate.
dirty
A ______ float occurs when the value of a currency is determined by market forces, but with central bank intervention if it depreciates too rapidly against an important reference currency.
freight forwarder
A ______ is a company that stores and ships merchandise for exporters.
letter of credit
A ______ is a contractual agreement prepared by an issuing bank on behalf of one of its clients (importers).
bill of lading
A ______ is a written agreement between the exporter of goods and the carrier.
draft
A ______ is a written order by one party (the drawer) to another (the drawee) to pay a fixed sum of money immediately or at a predetermined date for goods and/or services received.
counterpurchase
A reciprocal buying agreement is known as a(n) ______.
alliance
A strategic ________ is a partnership between two or more companies.
turnkey contract
Advantage for ___________ is the ability to earn returns from process technology skills in countries where FDI is restricted
First Mover Advantage
Advantages accruing to the first to enter a market
