Entrepreneurship in International Business - Week 12 Course Review

This set of flashcards contains key vocabulary terms and definitions relevant to the course on Entrepreneurship in International Business, essential for understanding the dynamics of international entrepreneurship, SMEs, entrepreneurial ecosystems, and strategic business models.

International Entrepreneurship

The discovery, enactment, evaluation, and exploitation of opportunities across national borders to create future goods and services.

SMEs (Small and Medium-sized Enterprises)

Businesses whose personnel numbers fall below certain limits, crucial for economic development and innovation.

Opportunity Recognition

The ability of entrepreneurs to identify unmet market needs that can be addressed through new ventures.

Innovation

The introduction of new ideas or improvements to existing products, processes, or services that create value.

Risk-Taking

The willingness of entrepreneurs to undertake financial, career, and psychological risks in pursuit of their business goals.

Entrepreneurial Ecosystem

A network of organizations and individuals that interact to promote and support entrepreneurship.

Cluster Theory

A theory explaining entrepreneurial ecosystems through the geographic concentration of interconnected businesses and institutions.

Global Value Chains (GVCs)

The fragmented stages of production where different aspects of the product development occur in multiple countries.

Liability of Foreignness

The inherent disadvantages faced when operating outside one’s home country.

Value Proposition

The promise of value to be delivered to customers, highlighting why a consumer should choose one product over another.

Franchising

A business model in which a firm allows others to operate using its brand and business model under agreed conditions.

Guanxi

A Chinese term referring to the networks of relationships among various parties that cooperate together and support one another.

Export Prohibitions

Restrictions placed on certain products that limit or prevent them from being exported.

Incoterms

International Commercial Terms that define the responsibilities of buyers and sellers in international transactions.

Venture Capital

Funding provided by investors to startup firms and small businesses with perceived long-term growth potential.

Strategic Alliances

Formal agreements between two or more parties to pursue a set of agreed-upon objectives while remaining independent organizations.

Market Entry Modes

The various strategies that a business can use to enter a new international market, including exporting, franchising, and joint ventures.

Smile Curve of Value-Adding Activities

A model illustrating how value is added at various stages of the supply chain, depicting the most value at R&D and marketing.

Environmental Sustainability

Practices that ensure resources are used responsibly to maintain long-term ecological balance.

Brand Equity

The commercial value that derives from consumer perception of the brand name of a particular product or service.

Customer Segmentation

The process of dividing a consumer market into smaller groups of consumers with distinct needs, characteristics, or behaviors.

Stakeholder Theory

A theory suggesting that the interests of all stakeholders (not just shareholders) should be taken into account by a business.