GMS 200 Lecture Notes - Lecture 3: Franchise Agreement, Reliance Industries, Market Entry Strategy

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Horatio Morgan

Document Summary

A worldwide network of interdependent countries that share resource supplies, product markets and a competitive business environment. Why would a company want to conduct business in global markets: customers (searching for new customers, cheaper labour, profitability (offer greater potential profit, financial advantages, cheaper supplies. Direct exporting: sell your product directly to the foreign customers. Indirect exporting: sell your product to foreign customers through an agent or distributor aboard. What are the advantages of direct exporting: can establish and maintain a relationship with foreign customers, can control the pricing of your product, get a larger share of the profit, if any. What are the disadvantages of direct exporting: managers have to learn about foreign markets, communication barriers- must know a common language. What are the advantages of indirect exporting: required limited knowledge of foreign markets, there is a middle person .