Mana chapter 8

10/21/23, 11:16 AM MindTap - Cengage Learning 1. 2. risk profile export-import business 3. 4., licensing Franchising 5. 6. Strategic alliances international joint venture 7. 8. acquisitions subsidiaries 9. 10. Multinational enterprises maximize shareholder wealth 1/4
10/21/23, 11:16 AM MindTap - Cengage Learning 2. a relatively low-risk business operation that involves penetrating foreign markets (by exporting) or importing merchandise (of all kinds) at competitive prices for domestic consumption 1. the potential financial loss that entrepreneurs are willing to take in a business 4, the practice in which the parent firm is obligated to provide specialized equipment and/or service (e.g., product specification and adaptation, pricing, promotion, and distribution strategies), and sometimes to fund some startup costs, to franchisees in return for an annual fee 3. the practice in which a company or individual provides the foreign partner with the technology (patented technology, copyright, process, trademark, etc.) to manufacture and sell products or services in a target country for an annual license fee 6. a business that is jointly owned and operated by two or more firms (usually one from the host country and the other from another country) that pool their resources (labor, capital, technology, and management) to penetrate host country markets, generate and split profits, and share commercial risk 5. an agreement between two or more firms that do not involve the creation of a separate entity with joint ownership and in which the firms stand to gain revenues and maximize profits through cooperation for a given period of time 8. new facilities built and operated overseas that require large investment of capital because these new establishments are tailored to the exact needs of the home country firm 7. purchase of established firms abroad with the goal of using the existing production, marketing, and distribution networks and of having instant access to foreign markets that fit the purchasing firm's global strategy 10. to maximize the net present value of future cash flows of foreign investment adjusted for exchange rate movements or to maximize profits so that shareholders could receive larger dividends and see their share prices rise over time 9. firms that are headquartered in one country, but own and control manufacturing, services, R&D (research and development) facilities, or other business entities on foreign soil 2/4
10/21/23, 11:16 AM MindTap - Cengage Learning 1. 12. product life cycle theory Governance 13. 14. acquisition maximizing shareholder wealth 3/4
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