Chapter 3 - Organisational Participants That Make International Business Happen Flashcards
Focal Firm
The initiator of an international business transaction, including multinational enterprises and small and medium-sized enterprises, that conceives, designs and produces the offerings intended for consumption by customers worldwide
Distribution Channel Intermediary
A specialist firm that provides a variety of logistics and marketing services for focal firms as part of the international supply chain, both in the home country and abroad
Facilitator
A firm or individual with special expertise in legal advice, banking, customs clearance or related support services that assists focal firms in the performance of international business transactions
Freight Forwarder
A specialised logistics service provider that arranges international shipping on behalf of exporting firms, much like a travel agent for cargo
Multinational Enterprise MNE
A large company with substantial resources that performs various business activities through a network of subsidiaries and affiliates located in multiple countries
Small Sized Enterprise
A company with fewer than 15 employees in Australia
Medium Sized Enterprise
A company with 15-200 employees
Born-Global Firm
A young entrepreneurial company that initiates international business activity very early in its evolution, moving rapidly into foreign markets
Licensor
A firm that enters into a contractual agreement with a foreign partner that allows the latter the right to use certain intellectual property for a specified period of time in exchange for royalties or other compensation
Franchisor
A firm that grants another the right to use an entire business system in exchange for fees, royalties or other forms of compensation
Turnkey Contractors
Focal firms or a consortium of firms that plan, finance, organise, manage and implement all phases of a project and then hand it over to a foreign customer after training local personnel
Joint Venture Partner
A focal firm that creates and jointly owns a new legal entity through equity investment or pooling of assets
Project-Based, Non-Equity Venture Partners
Focal firms that collaborate through a project, with a relatively narrow scope and a well defined timetable, without creating a new legal entity
Foreign Distributor
A foreign-Market-Based intermediary that works under contract for an exporter, takes title to and distributes the exporter’s products in a national market or territory, often performing marketing functions such as sales, promotion and after sales services
Agent
An intermediary firm that handles orders to buy and sell commodities, products and services in international business transactions for a commission
