INTL BUS 200 Study Guide - Final Guide: Double Taxation, Preempt, Extortion
8 May 2018
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Ungraded Quiz
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Map Q (2)
Currency (Should know)
Look at lecture notes0
Reasons overseas expatriate become expensive of int bus employer
-have to raise salary high enough to support Double taxation
-spending Various allowances
-Health Care (Medical/pension benefits)
-Cost of living adjustment
-Hardship premium
-Home leave
Only major time of potential failure of an expatriate is after arrival
False (All the time there is potential failure)
Curve (re-orientiation)
Two potential benefit of first-mover market entrant
Preempt rivals; Strong brand name; capture demand
Create switching cost; tie customer to first mover’s product
-Ex) Loyalty programs, critical mass of users creating a defacto standard
-Switching cost ex) switching software vendor
Establish social ties ahead of following foreign competitors
-Ex) develop government relations, develop connections universities/communities
What are INCOTERMS, what do/don’t they do
Standardized terms that have been created for international trade
What they do: Define how Cost,risk,responsibility are divided bet seller and buyer
What point does the curve move from the seller to the buyer
What they don’t do: Don’t to sales contract
Does not convey title (Don’t really say when the seller/buyer owns the ‘curds’)
Three factor that cause price escalation for exporters
Exporting from home country may be expensive due to transportation cost
Due to tariffs your oversea customers will have to pay
Goods can be damaged, have to add Packaging cost
Insurance/Security/Import, export compliance/Use of intermediaries
Two benefit of franchisors using entry strategies
Financial burden is not on you
You get the control to use the brand and other tangible assets
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Document Summary
Reasons overseas expatriate become expensive of int bus employer. Have to raise salary high enough to support double taxation. Only major time of potential failure of an expatriate is after arrival. False (all the time there is potential failure) Create switching cost; tie customer to first mover"s product. Ex) loyalty programs, critical mass of users creating a defacto standard. Establish social ties ahead of following foreign competitors. Standardized terms that have been created for international trade. What they do: define how cost,risk,responsibility are divided bet seller and buyer. What point does the curve move from the seller to the buyer. What they don"t do: don"t to sales contract. Does not convey title (don"t really say when the seller/buyer owns the curds") Three factor that cause price escalation for exporters. Exporting from home country may be expensive due to transportation cost. Due to tariffs your oversea customers will have to pay. Goods can be damaged, have to add packaging cost.
