Marketing Strategy in a Global Context - International Market Entry Strategies

Vocabulary flashcards covering international market entry strategies, organizational roles, and specific case examples from the global marketing lecture notes.

Exporting

Selling domestically produced products to foreign markets, serving as the least risky option with lower potential return for entering international markets.

Licensing

A legal process in which one firm pays to use or distribute another firm's resources, such as products, trademarks, patents, intellectual property, or proprietary knowledge.

Franchising

A contractual arrangement in which a franchisor provides a franchisee the right to use its name and marketing and operational support in exchange for a fee and a share of profits.

Joint Venture

An international entry strategy where a domestic firm partners with a foreign company to create a new entity, sharing equity and profit while acquiring local market insight.

Direct Ownership

An international market entry strategy in which a domestic firm actively manages a foreign company or overseas facilities, representing the riskiest option with higher potential return.

Licensor

The domestic firm in a licensing agreement that permits a foreign company to use its resources and proprietary technology.

Licensee

The foreign, typically locally owned firm that pays to use or distribute another firm's resources and provides unique insight about local consumers.

Franchisor

The parent entity that provides brand rights, operational support, and business systems to a local owner-operator in exchange for fees and profit shares.

Franchisee

The local owner-operator who assumes the majority of capital costs and human resource issues while paying fees to use a franchisor's name and systems.

Political Risk

The risk of local government unrest, which must be minimal for direct ownership to be a viable strategic option.

Small Business Exporters

Small companies that account for 98 percent of all U.S. exporters.

Lavazza and Yum China Joint Venture

A 2020 partnership in mainland China where Yum China owns 65 percent and Lavazza holds 35 percent to expand coffee cafes using Yum's supply chain infrastructure.

Target Canada Liquidation

A direct ownership outcome in 2015 where Target liquidated all 133 stores in Canada, costing over $2 billion since its start in 2011.