GMS 200 Lecture Notes - Lecture 3: Market Entry Strategy, International Trade, Femininity

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

Document Summary

Chapter 3 global dimensions of management (lecture 3 & 4) Process of growing interdependence among the components of the global economy. Types of globalization methods: international trade, international finance, international migration, international technology: global economy. A worldwide network of interdependent countries that share resource supplies, product markets and a competitive business environment. 5 reasons: larger target audience, larger profits outside country, cheaper labour, access to supplies, in search of financial resources and opportunities. How can companies effectively participate in the global market: market entry strategies, direct exporting: sell your product directly to foreign customers. Advantages: can establish and maintain relationships with foreign customers; can control the pricing; get larger share of profit if any. Disadvantages: managers must learn about foreign markets; cost of working in new market; time; risk: indirect exporting: sell your product to foreign customers through an agent or distributor abroad. Advantages: requires limited knowledge of foreign market; cost of doing business is less;