User:Cwech003/sandbox

The first entry mode is exporting. Exporting is manufacturing the product in a centralized location and exporting it to other national markets. In this way, the firm may realize substantial scale economies from its global sales revenue. As an example, many Japanese automakers made inroads into the U.S. market through exporting.

A second entry mode is something called a Turnkey project. A Turnkey Project is when a company allows a contractor to handle every detail of the project in a foreign market, including the training of operating personnel. At completion of the contract, the contractor hands a plant that is ready for full operation. This is a way of exporting process technology to other countries. Licensing and franchising are two more entry modes and are pretty similar definition wise. Licensing is the ability for a licensor to grant the rights to intangible property to the licensee for a specified period of time, and in return, receives a royalty fee from the licensee. Franchising on the other hand, is a specialized form of licensing in which the franchisor not only sells intangible property to the franchisee, but also insists that the franchisee agree to abide by strict rules as to its business strategy and methods. Lastly, a joint venture and wholly owned subsidiary are two more entry modes in international business. A joint venture is when a firm created is jointly owned by two or more companies (Most joint venture are 50-50 percent partnership). This is in contrast with a wholly owned subsidiary, when a firm owns 100 percent of the stock of a company in a foreign country because it has either set up a new operation or acquires an established firm in that country.

A terrorist attack is a violent attack against a company or country that was done with the intention of hurting or damaging that company or country. Hate is usually the motivating factor and can be based on religion, culture, political ideas, etc. The World Trade Center attack on 9/11 is an example of a terrorist attack that affected the entire United States in addition to the companies that operated in those buildings. It can be difficult to operate in a place where the environment is tense and scary and in countries that are likely to be attacked.