List the Seven Various Aspects of Culture.
List the seven various aspects of culture.
Explain the major factors an entrepreneur needs to consider in choosing the best distribution channel in a foreign country.
What are the major reasons why an entrepreneur would go global?
What is a nonequity arrangement? Define the two major types of nonequity arrangements: licensing and turn-key projects,and give at least one advantage and disadvantage for each. A.Licensing - involves an entrepreneur who is a manufacturer (licensee)giving a foreign manufacturer (licensor)the right to use a patent,trademark,technology,production process,or product in return for the payment of a royalty. Benefit: Low development costs and risks. Disadvantages: Lack of control over technology,inability to realize location and experience curve economies,inability to engage in global strategic coordination. B.Turn-key projects - A method of doing international business whereby a foreign entrepreneur supplies the manufacturing technology or infrastructure for a business and then turns it over to local owners. Benefits: relatively low risk,ability to earn returns from process technology skills in countries where FDI is restricted. Disadvantages: Creation of efficient competitors,lack of long-term market presence.