COMMERCE 1E03 Lecture Notes - Lecture 4: Joint Venture, Franchising, Free Trade
17 Jan 2018
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** note: must know acronyms on the exam. Strategies for reaching global markets (listed from least to most amount of commitment, control, risk and profit potential: licensing, exporting, franchising, contract manufacturing, foreign direct investment. 2018-01-16 lecture #4: shared knowledge of the market, disadvantages, lose intellectual capital / processes, shared technology may become obsolete. Kfc, taco bell and pizza hut are subsidiaries of yum! How protectionism affects world trade: tariffs: increase prices, decrease world trade, quotas: limit supply, decrease world trade. Protectionism practices: non-tariff barriers: non-tariff barriers are not as specific or formal as tariffs, import quotas, or embargoes, but can be as detrimental, restrictive paperwork or port facilities can act as non-tariff barriers. The human development report (canada ranking = 10) not tested: economic (macroeconomic) performance, government efficiency, business efficiency, infrastructure, measured by, life expectancy, expected schooling, ability to achieve a decent standard of living. Exporting: selling products to another country ($ comes in)
