ADMS 1000 Lecture Notes - Lecture 8: Tim Hortons, Joe Fresh, Multinational Corporation
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The generation of a single world economic system. The expansion of the degree and forms of cross-border transactions. The growth in direct foreign investment in regions across the world. Channels of global business activity: exporting and importing. Channels of global business activity: outsourcing and offshoring. Channels of global business activity: licensing and franchising. Channels of global business activity: direct investment in foreign operations (fdi) Channels of global business activity: joint ventures and strategic alliances. Channels of global business activity: mergers and acquisitions. Benefits: encourage economic development, offer management expertise, introduce new technologies, provide financial support, and , create employment, encourage international trade, bring countries closer together, facilitate global cooperation. Risks: mncs have no allegiance to the host country, profits are returned to the home country, decision-making can be highly centralized, mncs can be difficult to control. Regional economic integration: free trade area, customs union, common market, economic union.