(See related pages)
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| cross-licensing agreement | An arrangement in which a company licenses valuable intangible property to a foreign partner and receives a licence for the partner’s valuable knowledge; reduces risk of licensing. (See page(s) 410) |
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| first-mover advantages | Advantages accruing to the first to enter a market. (See page(s) 402) |
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| first-mover disadvantages | Disadvantages associated with entering a foreign market before other international businesses. (See page(s) 402) |
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| franchising | A specialized form of licensing in which the franchiser sells intangible property to the franchisee and insists on rules to conduct the business. (See page(s) 410) |
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| joint venture | A cooperative undertaking between two or more firms. (See page(s) 412) |
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| licensing agreement | Arrangement in which a licensor grants the rights to intangible property to the licensee for a specified period and receives a royalty fee in return. (See page(s) 408) |
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| pioneering costs | Costs an early entrant bears that later entrants avoid, such as the time and effort in learning the rules, failure due to ignorance, and the liability of being a foreigner. (See page(s) 402) |
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| strategic commitment | A decision that has a long-term impact and is difficult to reverse, such as entering a foreign market on a large scale. (See page(s) 404) |
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| timing of entry | Entry is early when a firm enters a foreign market before other foreign firms and late when a firm enters after other international businesses have established themselves. (See page(s) 402) |
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| turnkey project | A project in which a firm agrees to set up an operating plant for a foreign client and hand over the “key” when the plant is fully operational. (See page(s) 408) |
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| wholly owned subsidiary | A subsidiary in which the firm owns 100 percent of the stock. (See page(s) 413) |