Untitled Flashcards Set

1. Trips Agreement-free trade agreement that replaced NAFTA

• Trade Related preds of Intellectual Property

• Governs ip rights & Part of WTO

2. Doha Round-Part of WTO negotiation. 

• Slash tariffs, strengthen IP Protection

• Cut in 2006

• 1st round to improve 

• lower arg. subsidies econ dev. in developed countries. to start exports from developing countries.

• • Free up trade in services

• •Strengthen IP Protection.

• Suspended

3. EU countries, 

•THE UK left!!

Austria, Belgium Bulgaria, Croatia, Cyprus, Gech Rep., Denmark, Estonia, Finland, Frand, Germany, Greece, Hungary, Ireland, Italy, Latina, Lithuania, Luxembourg, Malta, Netherlands Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden

4. Free Trade Area- group of countries w/o trade barriers amongst e/o

ex:EU

• or no tariffs. on Goods

• Product standards

• Fair treatment

• Can sell to gov.

• more Competitiveness

• More efficient

5. Customs union- external Policies on non Participants to stop trade diversion

• One step beyond FTA

• Group of countries w/one common system for most imports exports

• Allows for free movement of goods

• Free trade among themselves

6. Monetary Union- agreement btwn 2+ Places to make one currency

ex:EU

• Lower transaction costs 

• more efficiency

7. Schengen Area-Passport free travel zone

Ex: EU

• No border checks

8. USMCA-FTA that replaced NAFTA

•US-Mex.- Can-Agreement

• Protects labor, digital trade, Ip

•Bans data localization requirements

9. Andean Community- Customs union in South America

• Pro Free trade

• Not effective

• Only 5-20% is in it

• Biggest trading Partner is the USA ***

10. ASEAN-Association of SE Asian Nations

• Inspired by EU 

• Most trade is from out community

• Main trading. Partners are US, EU, Japan & Ching

• Inside trade <25% of their total

11. Business Procedures

• Easy to start in rich country, hard in Poor 

• Electricity, infrastructure, etc. makes it hard

• High income spends 4%. on launch, but poor spends up to 50%

• registration, licensing and incorporation.

  •  hard in Poor

• Formal institutions are getting lax

FDI-Foreign Dived Investment Proprietary-relating to rights

12. Letter of credit -financial contract that says Importer's bank will pay a specific sum of money to exporter upon delivery of merchandise

• transaction costs go down bc less risk

13. FDI Entry Can involve subsidiaries, alliances w/foreign firms, or

acquisitions of foreign firms 

14. SMEs in the US

• <500 employees & In EU <250

15. Internationalization Methods

• Dual headquarters FDI

• Exporting

• Licensing

• Franchising

16. Export Intermediaries. 

• Do middleman stuff

17. Control in foreign Markets 

• Control in franchising is used in service industry

  • Must have own capital

• FDI may have wholly owned subsidiaries, strategic alliances, or acquisition of foreign firms 

  • FDI has less control propriety

• Costly & Complex

• Licensings Franchising is best for Proprietary

18. Harvest and Geit-selling equity stake or firm to foreign entrants

• Helps save business

19. Start up rates

• Japan has lowest of developed countries

20. Franchising & Licensing.

• licensing is for manufacturing Proprietary tech

  • Ex: A gives B Patent

• Franchising is for service industry. 

21. Customer Discrimination

• Foreign firms are discriminated against 

  • Formally & informally

• most govs discriminate

22. Agglomeration-location specific advantages From clustering in econ. activities in certain locations

• Come from spillover knowledge

• Pool of suppliers stay in region

• if skilled labor force needed, PPI who work for diff firms may help 

23. Stage Model-model of internationalization that gives step by step to internationalize

?

• Firms enter similar cultures in 1st stage of internationalization

24. First Mover advantage

• Proprietary tech

• Drive comp abroad.

• Investments

• Build relationships w/ customers & gov.

• Make Entry Barriers

25-Non Equity Modes - exports & contractual agreements

• FDI, Joint Venture,wholly Owned subsidiaries 

• Exports, Greenfields, acquisition

26. Strategic Alliances-cooperation btwn firms.

• Licensing/Franchising 

• Comarketing

• Joint Ventures

• Turnkey Projects

• R&D Contracts

27. Licensing & Franchising

Cons

• No tight control over Production's marketing 

28. Turnkey Projects Clients pay contractors to Design & construct new facilities

• Process tech where FDI is restricted

29. Country of Origin Effect- Pos. or neg Perception of firms & product from certain Country

30 Consumer preferences- some PPI will or want buy if from diff country