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CHAPTER 9

MARKET ENTRY AND EXPANSION

Chapter Outline

A. Stimuli to Internationalize

1. Proactive Stimuli

2. Reactive Stimuli

B. Change Agents

1. Internal Change Agents

2. External Change Agents

C. Going International

D. Export

1. Export Management Companies

2. Trading Companies

3. E-Commerce

E. Licensing and Franchising

1. Licensing

2. Franchising

F. Foreign Direct Investment

1. Major Foreign Investors

2. Reasons for Foreign Direct Investment

3. A Perspective on Foreign Direct Investors

4. Types of Ownership

Chapter Objectives

This chapter discusses on how firms continuously progress through a process of internationalization. It highlights the benefits and repercussions of entering international markets. The different means for entering international markets are discussed. The chapter then discusses the responsibilities of international intermediaries. The opportunities and challenges of cooperative market development are explained. The chapter ends with a discussion on the means different firms adopt to overcome market barriers.

Suggestions for Teaching

A good starting point in class is to ask students why a firm goes abroad. Surprisingly often, the profit motive only emerges after some time. It is very useful to ask students then how firms can evaluate international profitability before having entered the international market. Doing so highlights the difference between perception and reality, a crucial difference often emerging painfully for firms only after some international experience.

In the context of future student careers, it is also useful to highlight the management differences between proactive and reactive firms. International success for the individual is likely to come quicker in a proactive firm, and students looking for international advancement should look toward such firms.

• At the same time, closer psychological proximity does make it easier for firms to enter markets.

Overall, the more successful international firms are motivated by proactive that is, firm-internal factors. The motivations of firms do not seem to shift dramatically over the short term but are rather stable.

B. Change Agents

Someone or something within the firm must initiate change and shepherd it through to implementation. This intervening individual or variable is here called a change agent. Change agents in the internationalization process are shown in Exhibit 9.3.

1. Internal Change Agents

The type and quality of management is key to a firm’s international activities. Dynamic management is important when firms take their first international steps. Over the long term, management commitment and management’s perceptions and attitudes are also good predictors of export success. Also key are the international experience and exposure of management.

A high level of commitment is crucial to endure setbacks and failure. It is important to involve all levels of management early on in the international planning process. Any international venture must be incorporated into the firm’s strategic management process. It is also important to establish a specific structure in which someone has the responsibility for international activities.

Another major change agent is a significant internal event. The development of a new product that can be useful abroad can serve as such an event, as can the receipt of new information about current product uses.

2. External Change Agents

The primary outside influence on a firm’s decision to go international is foreign demand. Inquiries from abroad and other expressions of demand have a powerful effect on initial interest in entering the international marketplace. Unsolicited international orders are one major factor that encourages firms to begin exporting. Customers from abroad can visit the site and place an international order, even though a firm’s plans may have been strictly domestic. Thus, a company can unexpectedly find itself an exporter. Such firms are called accidental exporters. Another major change agent may actually be the competition. Domestic distributors also initiate change.

Banks and other service firms, such as accounting offices, can alert domestic clients to international opportunities.

Chambers of commerce and other business associations that interact with firms locally can frequently heighten international marketing interests. Government efforts on the national or local level can also serve as a major change agent.

C. Going International

For many firms, internationalization is a gradual process. Particularly in small markets, however, firms may very well be born global, founded for the explicit purpose of marketing abroad because the domestic economy is too small to support their activities. There are three major methods to enter new markets:

• Export

• Licensing and franchising

• Foreign direct investment

D. Export

In some countries, more than a third of exporting firms commenced their export activities within two years of establishment. Such start-up or innate exporters play a growing role in an economy’s international trade involvement. In most instances today, firms begin their operations in the domestic market. From their home location, they gradually expand, and, over time, some of them become interested in the international market. The development of this interest typically appears to proceed in several stages, as shown in Exhibit 9.4.

In each one of these stages, firms are measurably different in their capabilities, problems, and needs. Initially, the vast majority of firms are not even aware of the international marketplace. Frequently, management does not even fill an unsolicited export order. Should unsolicited orders or other international market stimuli continue over time, however, a firm may gradually become aware of international market opportunities. While such awareness is unlikely to trigger much business activity, it can lead management to gradually become interested in international activities.

Prime candidates among firms to make this transition from aware to interested are those companies that have a track record of domestic market expansion. In the next stage, the firm gradually begins to explore international markets. Management is willing to consider the feasibility of exporting. In this trial, or exploratory, stage, the firm begins to export systematically, usually to psychologically close countries. However, management is still far from being committed to international marketing activities.

After some export activity, typically within two years of the initial export, management is likely to conduct an evaluation of its export efforts. If a firm is disappointed with its international performance it may withdraw from these activities. Alternatively, it can continue as an experienced small exporter. Success can also lead to the process of export adaptation. Here a firm is an experienced exporter to a particular country and adjusts its activities to changing exchange rates, tariffs, and other variables.

Firms in different stages are faced with different problems:

• Firms at the export awareness and interest stages are primarily concerned with operational matters such as information flow and the mechanics of carrying out international business transactions They understand that a totally new body of knowledge and expertise is needed and try to acquire it.

• Companies that have already had some exposure to international markets via trial or evaluation begin to think about tactical marketing issues such as communication and sales effort.

• Firms that have reached the export adaptation phase are mainly strategy- and service-oriented. They worry about longer-range issues such as service delivery and regulatory changes.

Firms who choose to export their products may do so in a number of different ways:

• They may export directly or use export intermediaries such as export management companies or trading companies.

• They can also sell to a domestic firm that in turn sells abroad. Market intermediaries specialize in bringing firms or their goods and services to the global market. They have detailed information about the competitive conditions in certain markets or have personal contacts with potential buyers abroad. Two key intermediaries are:

• Export management companies

• Trading companies

1. Export Management Companies

Export management companies (EMCs) are domestic firms that perform international marketing services as commissioned representatives or as distributors for several other firms. They have two primary forms of operation:

• They take title to goods and operate internationally on their own account.

• They perform services as agents.

As an agent, an EMC is likely to have a contractual relationship that specifies exclusivity agreements and sales quotas. Price arrangements and promotional support payments are also agreed on.

For the EMC concept to work, both parties must recognize the delegation of responsibilities, the costs associated with these activities, and the need for information sharing and cooperation. On the manufacturer’s side, use of an EMC is a major channel commitment.

2. Trading Companies

Today, the most famous trading companies are the sogoshosha of Japan. These general trading companies play a unique role in world commerce by importing, exporting, countertrading, investing, and manufacturing. Four major reasons have been given for the success of the Japanese sogoshosha:

• These firms are organized to gather, evaluate, and translate market information into business opportunities.

• Their vast transaction volume provides them with cost advantages.

• These firms serve large markets around the world and have transaction advantages.

• These firms have access to vast quantities of capital, both within Japan and in the international capital markets.

Export trading company (ETC) legislation designed to improve the export performance of small and medium-sized firms in the United States permits bank participation in trading companies and reduces the antitrust threat to joint export efforts. An ETC can apply for a certificate of review from the U.S. Department of Commerce that provides antitrust preclearance for specific export activities. Bank participation in ETCs was intended to allow better access to capital. The relaxation of antitrust provisions in turn was to enable firms to share the cost of international market entry. Firms participating in trading companies by joining or forming them need to consider the difference between product- and market-driven activities.

with an imitation of the product, the general style of operation, and even with a similar name.

Selection and training of franchisees present another concern. Although the local franchisee knows the market best, the franchiser still needs to understand the market for product adaptation purposes and operational details.

Exhibit 9.7 summarizes research findings regarding the challenges faced in international franchising.

To encourage better-organized and more successful growth, many companies turn to the master franchising system, wherein foreign partners are selected and awarded the rights to a large territory in which they can subfranchise in turn. As a result, the franchiser gains market expertise and an effective screening mechanism for new franchises while reducing costly mistakes.

F. Foreign Direct Investment

Foreign direct investment (FDI) represents international investment flows that acquire properties and plants. The international marketer makes such investments to create or expand a long-term interest in an enterprise with some degree of control. Portfolio investment in turn focuses on the purchase of stocks and bonds internationally. Portfolio investment is of primary concern to the international financial community. FDIs have grown rapidly.

1. Major Foreign Investors

The United Nations defines multinational corporations as “enterprises which own or control production or service facilities outside the country in which they are based.”

This definition makes all foreign direct investors multinational corporations. Many of the large multinationals operate in well over 100 countries. For some, their original home market accounts for only a fraction of their sales.

Through their investment, multinational corporations bring economic vitality and jobs to their host countries and often pay higher wages than the average domestically oriented firms. At the same time, however, foreign direct investors often bring with them imports on an ongoing basis.

2. Reasons for Foreign Direct Investment

• Marketing Factors: Marketing considerations and the corporate desire for growth are major causes for the increase in FDI. Corporations attempt to obtain low-cost resources and ensure their sources of supply. FDI permits corporations to circumvent current barriers to trade and operate abroad as a domestic firm, unaffected by duties, tariffs, or other import restrictions. Firms have been categorized as:

o Resource seekers: These seek for either natural resources or human resources.

o Market seekers: These corporations primarily search for better opportunities to enter and expand within markets.

o Efficiency seekers: These firms attempt to obtain the most economic sources of production.

A major cause for the increase in foreign direct investment is derived demand, which is the result of the move abroad by established customers. Large multinational firms like to maintain their established business relationships and, therefore, frequently encourage their suppliers to follow them abroad. As a result, a few initial investments can lead to a series of additional investments.

• Government incentives: Governments are under pressure to provide jobs for their citizens. Foreign direct investment can increase employment and income. Government incentives are mainly of three types:

o Fiscal: These are specific tax measures designed to attract the foreign investor. They typically consist of special depreciation allowances, tax credits or rebates, special deductions for capital expenditures, tax holidays, and other reductions of the tax burden on the investor.

o Financial: These offer special funding for the investor by providing land or buildings, loans, loan guarantees, or wage subsidies.

o Nonfinancial: These consist of guaranteed government purchases; special protection from competition through tariffs, import quotas, and local content requirements; and investments in infrastructure facilities.

Incentives may slightly alter the advantage of a region. By themselves, they are unlikely to spur an investment decision if proper market conditions do not exist.

3. A Perspective on Foreign Direct Investors

Foreign direct investors, and particularly multinational corporations, are viewed with a mixture of awe and dismay. Governments and individuals praise them for bringing capital, economic activity, and employment and for transferring technology and managerial skills.

At the same time, investment may lead to dependence. Just as the establishment of a corporation can create all sorts of benefits, its disappearance can also take them away again. Very often, international direct investors are accused of draining resources from their host countries. By employing the best and the brightest, they are said to deprive domestic firms of talent, thus causing a brain drain. Once they have hired locals, multinational firms are often accused of not promoting them high enough.

By raising money locally, multinationals can starve smaller capital markets. By bringing in foreign technology, they are viewed either as discouraging local technology development or as perhaps transferring only outmoded knowledge.

4. Types of Ownership

• Full Ownership: Many firms prefer to have 100 percent ownership. Sometimes, this is the result of ethnocentric considerations based on the belief that no outside entity should have an impact on management. To make a rational decision about the extent of ownership, management must evaluate how important total control is for the success of its international marketing

flexibility, as they can be formed, adjusted, and dissolved rapidly in response to changing conditions. Alliances can range from information cooperation in the market development area to joint ownership of worldwide operations. Market development is one reason for the growth in such alliances. Companies must carefully evaluate the effects of entering such a coalition, particularly with regard to strategy and competitiveness. The most successful alliances are those that match the complementary strengths of partners to satisfy a joint objective. Often the partners have different product, geographic, or functional strengths, which the alliance can build on in order to achieve success with a new strategy or in a new market. They can then either operate jointly as equals or have one partner piggyback by making use of the other’s strengths.

In a management contract, the supplier brings together a package of skills that will provide an integrated service to the client without incurring the risk and benefit of ownership. The activity is quite different from other contractual arrangements because people actually move and directly implement the relevant skills and knowledge in the client organization Management contracts have clear benefits for the client. They can provide organizational skills that are not available locally, expertise that is immediately available rather than built up, and management assistance in the form of support services that would be difficult and costly to replicate locally. Similar advantages exist for the supplier. The risk of participating in an international venture is substantially lowered because no equity capital is at stake.

In a dynamic business environment, alliances must be able to adjust to market conditions. Any agreement should therefore provide for changes in the original concept so that the venture can grow and flourish.

• Government Consortia: One form of cooperation takes place at the industry level and is typically characterized by government support or even subsidization. Usually, it is a reflection of escalating cost and a governmental goal of developing or maintaining global leadership in a particular sector. To combat the high costs and risks of research and development, research consortia have emerged in the United States, Japan, and Europe.

Key Terms

Safety-valve activity: Stimulating export sales with short-term price cuts in order to balance inventories or compensate for overproduction in the short term.

Psychological distance: The lack of symmetry between growing international markets with respect to cultural variables, legal factors, and other societal norms; a market that is geographically close may seem to be psychologically distant.

Change agent: Someone or something within the firm must initiate change and shepherd it through to implementation This intervening individual or variable is here called a change agent

Accidental exporters: Firms which become international unexpectedly due to unsolicited orders, such as those placed via a website, requiring export; unplanned participation in the international market.

Born global: Firms which are founded for the explicit purpose of marketing abroad since the domestic economy is too small to support their activities.

Innate exporters: Exporting firms which embark on their export activities within two years of establishment.

Awareness: The stage in corporate export where a firm gains knowledge about its international market opportunities.

Interest: The stage in corporate export where a firm shows attentiveness in its international activities.

Trial: In this exploratory stage, the firm begins to export systemically, usually to psychologically close countries.

Evaluation: The stage in corporate export where after some export activity, typically within two years of the initial export, management is likely to assess its expert efforts.

Adaptation: An experienced export firm which is able to adjust its activities to keep pace with changing exchange rates, tariffs, and other variables in the international market.

Sogoshosha: Large Japanese trading companies, such as Sumitomo, Mitsubishi, Mitsui, and C. Itoh.

Export trading company (ETC): Legal construct designed to encourage small and mediumsized companies that are encouraged to participate in the international marketplace; aimed to reduce the antitrust threat to joint export efforts.

E-commerce: The ability to offer goods and services over the Web.

Licensing: An agreement where one firm, the licensor, permits another to use its intellectual property in exchange for compensation designated as a royalty.

Transfer costs: All variable costs incurred in transferring technology to a licensee and all ongoing costs of maintaining the agreement.

R&D costs: Costs incurred on account of research and development of licensed technology. Opportunity costs: Costs incurred in the foreclosure of other sources of profit, such as exports or direct investment.

Trademark licensing: Permission for the use of the names or logos of designers, literary characters, sports teams, and movie stars on merchandise such as clothing.

Franchising: A parent company (the franchiser) grants another, independent entity (the franchisee) the right to do business in a specified manner.

Master franchising system: A system wherein foreign partners are selected and awarded the franchising rights to a large territory in which they can subfranchise in turn.

Foreign direct investment: It represents international investment flows that acquire properties and plants. The international marketer makes such investments to create or expand a long-term interest in an enterprise with some degree of control

Portfolio investment: It focuses on the purchase of stocks and bonds internationally.

Resource seekers: Firms that search for either natural resources or human resources.

Market seekers: Corporations primarily in search of better opportunities to enter and expand within markets

Efficiency seekers: Firms that attempt to obtain the most economic sources of production

Derived demand: It is the result of the move abroad by established customers. Large multinational firms like to maintain their established business relationships and, therefore, frequently encourage their suppliers to follow them abroad. As a result, a few initial investments can lead to a series of additional investments

Fiscal incentives: Specific tax measures designed by the government to reduce the burden on the investors and thereby attract foreign investment. They typically consist of special depreciation

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As there are no vibrators or independent coils used, the spark occurs exactly at the instant that the timer operates or breaks the primary circuit. It will be noted that the spark is produced with this magneto when the primary circuit is broken by the timer, instead of made as is the case with battery coils, or coils used with low tension magnetos. There is no lag and consequently the time of ignition is not affected by variations in the engine speed, which requires an advance and retard of the spark with batteries and vibrator coils.

When used with multiple cylinder engines the high tension magneto is provided with a distributor, which connects the high tension current with the different cylinders in their proper firing order. The timer determines the time at which the spark is to occur and the distributor determines the cylinder in which the spark is to take place.

the magneto must be “timed” with the engine, or must have its armature shaft connected to the shaft of the engine in such a manner that the timer contact is broken, and the single spark produced at the instant that ignition is required in the cylinder.

Unlike the dynamo, the alternating current magneto cannot be used with a storage battery, the alternating current producing no chemical change in the electrodes of the battery.

Four Cylinder “D4” High

Tension Bosch Magneto Showing Distributor.

The Bosch high tension magneto is a typical high tension magneto having the primary and secondary windings wound directly on the armature shaft, there being no external secondary coil. The end of the primary winding is connected to the plate (1) Fig. 107, which conducts the current to the platinum screw of the circuit breaker (3). Parts (2) and (3) are insulated from the breaker disc (4), which is in electrical contact with the armature core and frame. When the circuit breaker contacts are together the primary winding is short circuited, and when they are separated the current is broken and the spark occurs. The breaker contacts are simply two platinum pointed levers

that are separated and brought together by the action of a cam as they revolve. A condenser (8) is provided for the circuit breaker to suppress the spark and to increase the rapidity of the “break.”

The secondary winding of fine wire is a continuation of the primary winding, and the secondary is wound directly over the primary. The outer end of the secondary connects with the slip ring (9) on which slides the carbon brush (10), which conducts the high tension current from the armature. This brush is insulated from the frame by the insulation (11). From (10) the current is led through the bridge (12) through the carbon brush (13) to the distributor brush (15). Metal segments are imbedded in the distributor (16), the number of which corresponds to the number of cylinders. As the brush rotates, it makes consecutive contact with each of the segments in turn and therefore leads the current to the cylinders in their firing order. Wires from the cylinders are connected to sockets that in turn connect with the segments. The disc driving the distributor brush (15) is geared from the armature shaft in such a way that the armature turns twice for every revolution of the distributor, when four cylinders are fired, and three times for the distributors once when six cylinders are fired.

The voltage of the current generated in the secondary coil by the rotation of the armature is increased by the interruption of the

Fig. 108. Bosch High Tension Circuit.

Fig. 109. Elevation of Bosch Oscillating Magneto for Slow Speed Engines.

High Tension Type.

On cam shaft (c) two cams are mounted side by side. One of these cams (a) is to be used for starting the motor, or for the retarded spark position, while the second (b) is to be used for operation, or for the full advance position. These cams are mounted on a sleeve, which may be moved longitudinally on the shaft, so that the trip lever may be operated by cam (a) or cam (b) as desired. The sleeve is caused to rotate with the shaft by a key. Between the cam (b) and a fixed collar (f) a spiral spring is arranged, which tends to maintain the sleeves in the position when the cam (b) is in operation. A stop collar is also provided to limit the movement of the sleeve beyond this full advance position. Over this collar is fitted a hand wheel, which, in the position illustrated in the diagram, acts together with the collar as a stop. Around the collar is a circular key-way, and a brass bolt is located in the hand wheel to lock into this key-way when the hand wheel is pushed into the position indicated by the dotted lines. This movement of the wheel forces the cam sleeve forward, and brings the retarded cam (a) into the operating position to permit the engine to be started.

(102) The Mea High Tension Magneto.

Fig. 110. Diagram of Oscillating Magneto, Showing Cam and Trigger Arrangement.

The low tension winding of the ordinary type of magneto is shortcircuited by a breaker which opens at certain points of each revolution with the result that a high voltage is generated across the high tension winding at the moment of the break, and a spark produced across the spark gap in the cylinder to which it is connected. The quality of this spark, or in other words the heat value, depends among other factors upon the particular position of the armature in relation to the magnetic field at the moment the spark is produced. As the armature in this type of magneto is in a favorable position for obtaining a spark twice every revolution, two

Furthermore, the range of timing, which with the horse-shoe type of magneto is limited to 10° or 15° at low speeds (i. e. at speeds at which a retarded spark is of value) becomes limited only by the necessity of supplying a suitable support for the magnets. With the standard types of Mea magnetos described in the following, this range varies from about 45° to 70°, but if necessary this range can be increased to any amount desired.

The bell-shaped magnets are fixed to the casing which is mounted on a base supplied with the magneto. The timing is altered by turning the casing and magnets together on the base.

Fig. 112 shows a longitudinal section of a four cylinder Mea magneto. The armature F with the ball bearings 17–18 rotates in the bell-shaped magnets 100, the poles of the magnets being on a horizontal line opposite the armature 1. The armature is of the ordinary H type iron core wound with a double winding of heavy primary and fine secondary wire. On the armature are mounted the condenser 12, the high tension collector ring 4, and the low tension circuit breaker 26–39.

The circuit breaker consists of a disc 27 on which are mounted the short platinum 33, the other contact point 34 is movable and is supported by a spring 30 which is fastened to the insulated plate 28 mounted on disc 27. Fiber roller 31 in connection with cam disc 40 which is provided with two cams is located inside the breaker. Revolving with the armature the roller presses against the spring supported part of the breaker whenever it rolls over the two cams which of course is twice per revolution.

Magneto of Roberts Motor in Advanced Position.

112-a. Advance and Retard Mechanism

Used in the Roberts Motors. The Magneto is Driven by a Helical Gear from the Small Pinion. By Shifting the Gear Back and Forth on the Pinion, the Armature of the Magneto is Advanced or Retarded in Regard to the Piston Position. The Reason for this Change Will

(103) The Wico High Tension Igniter.

The Wico igniter produces a spark similar to that of the conventional high tension magneto except that the heat of the spark is independent of the engine speed. In other respects it is very different from the types described in the preceding pages for its motion is reciprocating instead of being rotary, and because all of the wire is stationary, the only movement being that of the iron core that passes through the center of the fields. The fact that the spark is of the same intensity at all speeds makes this device particularly desirable in starting the engine at which time the mixture is always of the poorest quality.

Fig. 113. Wico Igniter. High Tension Reciprocating Type.

It is very simple, and is without condensers, contact points or primary windings, and has no parts that require adjustment.

The current is generated by the reciprocating movement of two soft iron armatures shown as a bar across the bottom of the two coils, which move alternately into and out of contact with the ends of the soft iron cores. The movement of these armatures in the upward direction is produced by the motion of the engine and the speed of this movement is, of course, proportional to the speed of the engine. The downward movement, which produces the spark, is caused by the action of a spring, is much more rapid than the upward movement and entirely independent of the speed of the engine.

The magnets are made of tungsten steel, shown as two bars across the top of the coils, hardened and magnetized and are fastened by machine screws to the cast iron pole pieces, which serve to carry the magnetic lines of force from the poles of the magnets to the soft iron cores. The cores, which fit into slots milled in the pole pieces, are laminated or built up of thin sheets of soft iron, each sheet being a continuous piece, the full length of the core. Each core, extends from just below the top armature, down through the pole piece, and coil to just above the bottom armature.

Each armature consists of a number of laminations or sheets of soft iron mounted on a spool shaped bushing, which, in turn, is loosely fitted onto the squared end of the armature bar. The armature bar is supported with a sliding fit in a box shaped guide which is fastened in the case.

On the outer ends of the armature bar are spiral springs held in place by cup shaped washers and retaining pins, the combination making a self-locking fastening similar to the familiar valve spring fastening used almost universally on gas engines. These springs bear against the armatures and tend to force them against the shoulders of the armature bar.

The coils each have a simple high tension winding of many turns, thoroughly insulated and protected against mechanical injury. They

are connected together in series by means of a metal strip, thus making one continuous winding. In the single cylinder igniter, one end of the winding is grounded to the case of the igniter, while the other end is connected to the heavily insulated lead wire. This lead wire passes out through a stuffing box, packed with wicking and thoroughly water tight, direct to the spark plug in the cylinder.

In the two cylinder machine no ground connection is used, but both ends of the winding are connected to lead wires passing out of the case to the spark plugs.

The action of the igniter is as follows:—As the driving bar, through its connection with the engine, is moved downward to its limit of travel, carrying the latch with it, the shoulder on the side of the latch snaps under the head of the latch block. As the motion reverses the latch carries the latch block and armature bar upward. The lower armature, being in contact with the stationary cores, cannot rise with the armature bar, but the lower armature spring is compressed between its retaining washer and the armature, while the bar rises and carries with it the upper armature, which bears against the upper shoulders on the bar.

As the driving bar continues its upward motion the upper end of the latch meets the lower end of the timing wedge and, as the wedge is held stationary by the timing quadrant, a further movement of the latch causes it to be pushed aside until the shoulder on the latch clears the latch block and releases it.

As the lower armature spring is at this time exerting a pressure between the armature bar and cores through the medium of the lower armature, the instant the latch block is released, the armature bar is quickly pulled downward, carrying the upper armature with it.

Just before the motion of the upper armature is stopped by its coming in contact with the cores, the lower shoulders on the armature bar come in contact with the lower armature, and, as the bar has acquired considerable velocity, its momentum carries the lower armature away from the cores against the pressure of the upper armature spring, which thus acts as a buffer to gradually stop

the movement of the armature bar. The armature bar finally settles in a central position.

The timing of the spark is accomplished by releasing the armature bar earlier or later in the stroke. This is done by shifting the position of the eccentric timing quadrant, which in turn varies the position of the wedge so that the latch strikes it earlier or later in the stroke. The timing quadrant is furnished with several notches into one of which the top of the wedge rests, thus holding the quadrant in the desired position.

The motion should preferably be taken from an eccentric on the cam shaft of a single cylinder four cycle engine, or the crank shaft of a single cylinder two cycle or a two cylinder four cycle engine. On a two cylinder four cycle engine, it is sometimes more convenient to drive the igniter from the cam shaft, using a two throw cam to produce the required number of sparks. In this case the shape of the cam should be such as to duplicate the motion of the eccentric. That is, it should start the driving bar slowly from its lower position, move it most rapidly at mid stroke and bring it to rest gradually at the upper end of the stroke, exactly as is done by the eccentric motion.

When an eccentric is already on the engine the motion may be taken from it to an igniter with a driving bar through a properly proportioned lever that will give the required length of stroke. Where a plunger pump is used on the engine the motion can usually be taken from the pump rod. Where an eccentric has to be provided especially for the igniter, the driving bar is generally used with its roller running on the eccentric.

(104) Starting On Magneto Spark.

A four-cylinder engine in good condition will come to rest with the pistons approximately midway on the stroke and balanced between the compression of the compressing cylinder and of the power cylinder. When the cylinders of such an engine are charged with a proper mixture, the engine will start by the ignition of the mixture contained in the compressing cylinder, for the pressure produced by the ignited gas will be sufficient to rotate the crankshaft.

It is essential, for the ignition system to be so arranged that a spark can be produced at any point in the piston travel, and in this the Bosch dual, duplex and two independent systems are successful.

The Bosch dual system, Fig. 114, is part of the equipment of many of the cars and engines marketed, and is composed of two separate and distinct ignition systems, one supplying ignition by direct hightension magneto, and the other by a battery and high-tension coil. These two systems consist in reality of but two main parts; the dual magneto, incorporating a separate battery timer, and the single unit dual coil with its battery. The sparking current from either battery or

Fig. 114. Bosch Dual System.

magneto is brought to the magneto distributor, so that the only parts used in common are the distributor and the spark plugs; the common use of the latter for both magneto and battery systems is cause for the popularity of the dual system for motors having provision for only one set of plugs.

In both the magneto and the battery sides the spark is produced on the breaking of the circuit, and the coil is so arranged that by pressing a button when the switch is in the battery position, an intense vibrator spark is produced in the cylinder during that period when the circuit breaker is open, which will be the case during the first three-fourths of the power stroke. The current is transmitted to the distributor and passes through the spark plug of the cylinder that is on the power stroke.

Should the engine come to a stop in such a position that the battery timer is closed, it will not be possible to produce a vibrator spark by the pressing of the button, but the releasing of the button will produce a single contact spark that will ignite the mixture and thus start the engine.

Thus if the engine should stop in some odd position, and the spark is produced when the piston is slightly before top center, for instance, there will be a slight reverse impulse which will bring another

Fig. 115. Bosch Duplex Breaker.

cylinder on the power stroke and into the ignition circuit. The engine will thereupon take up its cycle in the proper direction.

In the Bosch duplex system the coil is in series with the magneto armature, but the spark is produced under the same condition, that is, on the breaking of the circuit. In consequence the Bosch duplex system will permit the production of a spark during the first threequarters of the power stroke by the pressing of the push button set on the switch plate.

The Herz High Tension Magneto in Which the Magnets are Built up of Thin Steel Plates Without Pole Pieces (Four Cylinder Type).

The Bosch two independent system is composed of a separate Bosch battery system and a separate Bosch magneto. Although the operation of the coil is somewhat similar to that of the dual system, the nature of the battery system is such as to require arrangements for two separate sets of spark plugs. The coil is not unlike that supplied with the dual system in that by pressing a button located

on the switch plate a series of intense sparks may be produced in the cylinder at all advantageous points of the power stroke.

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