GMS 200 Lecture Notes - Lecture 3: International Finance, Foreign Direct Investment, Market Entry Strategy

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

Document Summary

Global dimensions of management chapter 3 (part. Globalization: is the process of growing interdependence among elements of the global economy. Immigration (different ethnic communities) (different ethnic foods) Global economy: 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: 5 reasons: Customers the search for new customers. Labor the search for cheaper labor (cheaper labor is not always better) How can companies effectively participate in the global markets: global sourcing, exporting. No opportunity to develop a relationship with foreign customers. Direct exporting sell your product directly to foreign customers. 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. Managers have to learn about foreign markets. Cost of doing business: licensing agreement.