GMS 200 Study Guide - Ingvar Kamprad, North American Free Trade Agreement, Multinational Corporation

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

Document Summary

Reasons why businesses go global: profits, customers, suppliers, capital, labour. Types of market entry strategies: global sourcing, the process of purchasing materials or services around the world for local use, exporting and importing, comes with different risk; direct export, directly selling to a consumer, has advantages of direct feedback an response from consumers, one firm pays fee for rights to make or sell another company"s products (eg. coca cola bottlers; private companies, a fee is paid for the rights to use another firm"s name and operating, licensing agreement, franchising methods (eg. kfc) Joint ventures: operates in a foreign country though co ownership by foreign and local partners; difficult to find good partners, at times choosing the wrong partner can end up jeopardizing a company, global strategic alliances (hp and microsoft); can bring lots of opportunity and, foreign subsidiaries also lots of profit, local operations completely owned by a foreign firm o.