A S L 3 Lecture Notes - Lecture 7: Foreign Direct Investment, Pest Analysis, Advantageous
Document Summary
Globalization the process of closer integration and exchange between different countries and peoples worldwide, made possible by falling trade and investment barriers, advances in telecommunications, and reductions in transportation costs. Allow companies to source supplies at lower cost and to further differentiate products the world"s market economies are becoming more integrated and interdependent. Globalization has led to a significant increase in living standards. Multinational enterprise (mne): company that deploys resources and capabilities in the procurement, production, and distribution of goods and services in at least two countries. Foreign direct investment (fdi) a firm"s investment in value chain activities abroad. Global strategy part of a firm"s corporate strategy to gain and sustain a competitive advantage when competing against other foreign and domestic companies around the world. Globalization 1. 0: 1900-1941: all the important business functions were located in the home country. Only sales and distribution operations took place overseas essentially exporting goods to other markets.
