COMM 223 Chapter Notes - Chapter 16: North American Free Trade Agreement, Contract Manufacturer, Global Marketing

• School: Concordia University
• Department: Commerce
• Course: COMM 223
• Professor: Bonnie Feigenbaum

Document Summary

Global firm: a firm that, by operating in more than one country, gains r&d, production, marketing and financial advantages in its costs and reputation that are not available to purely domestic competitors. Minimizes the importance of national boundaries and develops global brands. Raises capital, obtains materials and components, and manufactures goods wherever it can do the best job. Global firms ask a number of basic questions: Who will our global competitors be, and what are their strategies and resources. Where should we produce, or source our product. Tariffs or duties; taxes on certain imported products designed to raise revenue or to protect domestic firms. used to force favorable trade behaviors from other nations. Quotas: limits on the amount of foreign imports they will accept in certain product categories. Exchange controls; limits the amount of foreign exchange and the exchange rate against other currencies. Nontariff trade barriers: biases against its bids, restrictive product standards, excessive host-country regulations or enforcement.