Glossary

L
Seria

Key Points

l No.
1.

Lag Strategy

Definitions

Examples

Lag strategy refers to adding capacity PRAN-RFL

only after the organization is running They first observed the
at full capacity or beyond due to market and demand
increase in demand

conditions, then they

had added logistics and
IMC support to boost
up the sale or market

2.

Late Mover

share.
The advantage that a company has Like Banglalink and GP

Advantages

when it is the last to introduce a new

product,

service,

or

because

it

learn

can

had over its competitor

technology, Teletalk.
from

3G and 3.5 G

developments that have taken place,

3.

Late mover

or from what others have done.

Handicap that late entrants to a Loss of market share.

disadvantages market suffer.

Like: RC Cola and Pran

Cola have a very few of
market

4.

Law of one
price

shares

than

Coke and Pepsi.

The theory that the price of a given Mostly
happen
security, commodity or asset will typically

in

RMG

have the same price when exchange sectors all over the
5.

Lead market

rates are taken into consideration.

world.
Lead Market is a term used in USA in terms of having
innovation theory and denotes a the Drone in countries

country or region, which pioneers the Defense sector.

successful adoption of an innovative
6.

Lead strategy

design or product.
Collecting
foreign

currency Practiced all over the

receivables early when a foreign world

to

have

currency is expected to depreciate, competitive advantage.

and paying foreign currency payables
before they are due when a currency
7.

Lean
production
systems

is expected to appreciate
Lean production is a systematic Its

method for the elimination of waste approach to cut out

within a manufacturing system.

waste

and

quality.
8.

Japanese
ensuring

Like

Jaguar

Learning

follows this technique.

Its the process by which education First observed by the

effects

increases productivity and results in 19th century German

higher wages.

psychologist Hermann
Ebbinghaus investigati
ng

the

difficulty

memorizing
numbers
9.

Legal risk

varying
of

regulatory obligations
Legal system

verbal

stimuli.
Legal risk is the risk arising from In Japan, to conduct
failure to comply with statutory or business

10.

of

companies

must have to follow

and comply govt. rules.

Legal systems are the systems of civil Every country has a
law, common law and religious law. law, like Japan it is
Each

country

variations

on

often

develops very

to

each system and conduct business due

incorporates many other features into to

the system.

difficult
high

restrictions

govt.
because

they want to encourage

their

own

manufacturers.
11.

Leontief

Leontief's paradox in economics is

paradox

that the country with the world's

highest capital-per worker has a
lower capital/labor ratio in exports

USthe most capital

abundant country in
the

world

by

any

criterionexported

than in imports.

labor-intensive
commodities
imported

and
capital-

intensive commodities.
This result has come to
be
12.

known

as

the

Letter of

Leontief Paradox.
An LC is a commitment by a bank on Samia Telecom ( One

credit

behalf of the importer (foreign buyer) of the largest mobile

that payment will be made to the parts accessories ) had
beneficiary (exporter) provided that an agreement with City
the terms and conditions stated in Bank Ltd. to work as
the LC have been met, as evidenced their

trustee

while

by the presentation of specified importing from China.

13.

Licensing

documents.
Licensor grants the rights to licensee KFC & Transom Group
to use its intangible property at a

14.

Licensing

royalty fee
A licensing

agreement

contract between two parties, known Tobacco International

agreement is

legal Akij Tobacco Japan

as the licensor and the licensee. In a ( Recently signed up )

typical licensing

agreement,

the Basically, JTI will use

licensor grants the licensee the right all

the

distribution

to produce and sell goods, apply a channels of Akij.

brand name or trademark, or use
patented technology owned by the

15.

Local content

licensor.
Local content requirements (LCRs) In 2009, the Canadian

requirement

are

regulations

that

of

Ontario

defined proportion of a final good be passed

the

Green

produced

and

Green

within

specify
a

a province

specific Energy

jurisdiction.

Economy Act, aiming

to

expand

renewable

the
energy

sector and create green

16.

Localization

The practice of adjusting a product's f

jobs.
McDonalds

strategy

unctional properties and characteristi

different

cs to accommodate the language, while

cultural,

pursue
strategies

having

their

political business typically

and legal differences

of

in

a Asia and Europe.

foreign market or country.

17.

Location
economies

In business,

Honda

established

the economics of location is the study their manufacturing at

of strategies used by firms in a India due to low cost of
monopolistically

competitive labor.

environment in determining where to

18.

Location

locate.
The ability of an individual, company, Both Intel and Apple

specific

or economy to conduct an activity bet

company

ter than any

manufacturing

other for reasons related to location.

China due to expertise

advantages

19.

Logistics

have

their
at

availability.
The planning, execution, and control Orion group and Toma
of the movement / placement of group have the biggest
goods and / or people, and the Logistics
related

supporting

activities,

support

of

all their own. Thats why

within a system designed to achieve they are able to handle

specific objectives.

big projects.