INBU 3300 - CH 1

Terms in this set (16)

the widening set of interdependent relationships among people from different parts of a world that happens to be divided into nations

international business

defined as all commercial transactions, including sales, investments, and transportation, that take place between two or more countries

born-global companies

start out with a global focus because of their founders' international experience and because advances in comm give them a good idea of where global markets and supplies are

clustering/agglomeration

when companies locate in areas with numerous competitors

merchandise exports

tangible products, goods that are sent OUT of a country

merchandise imports

goods brought INTO a country

turnkey operations

construction projects performed under contract and transferred to owners when they're operational

management contracts

arrangements in which one company provides personnel to perform general or specialized management functions for another

licensing agreements

when one company allows another to use its assets such as trademarks, patents, copyrights, or expertise

come from franchise/licensing contracts

a mode of business in which one party allows another to use a trademark as an essential asset of the franchisee's business

the investor takes a controlling interest in a foreign company

when two or more companies share ownership of FDI

Portfolio Investment

a noncontrolling financial interest in another entity

strategic alliance

refers either to an agreement that is of critical importance to one or partners or to an agreement that does not involve joint owernship

Multinational Enterprise/Multinational Corporation/Transnational Company

refers to any company with FDI's

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