ADM 3318 Lecture Notes - Lecture 1: 18 Months, Multinational Corporation, International Business

• School: University of Ottawa
• Department: Administration
• Course: ADM 3318
• Professor: Ado Abdoulkadre

Document Summary

Globalization: the shift toward a more integrated and interdependent world economy. Globalization of markets: the merging of historically distinct and separate national markets into one huge global marketplace. Firms benefit from this trend and facilitate it. The most global markets currently are not markets for consumer products, but markets for industrial goods and materials that serve a universal need. Globalization of production: sourcing goods and services from locations around the globe to take advantage of national differences in the cost and quality of various factors of production. By doing this, companies hope to compete more effectively by either (1) lower their overall cost structure, (2) improve the quality/functionality of their product. Factors of production: components of production such as labor, energy, land, and capital. Rationale of outsourcing to foreign suppliers: they are in the best in the world in what they do. Combining their efforts yield to a better final product.