GMS 200 Chapter Notes - Chapter 3: Greenfield Project, Global Sourcing, Insourcing

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

Document Summary

Objectives: explain what management challenges are going global, define global business and explain what things it undertakes, explain what culture is and how it impacts global management, explain the benefits of developing global management skills. Why companies go global: profits, customers, suppliers, capital, labour. How companies go global: global sourcing- materials purchased around the world, exporting/ importing, licensing, franchising fee paid for rights to locally operate. Joint ventures and strategic alliances- foreign direct investment, insourcing (creating jobs), joint ventures, global strategic alliance: foreign subsidiaries- local operation completely owned by a foreign firm, greenfield investment (starting a new operation in a foreign country) Global businesses: global corporation- multinational business with extensive operations in more than one foreign country. Types of global businesses: transnational corporation- is an nmc that operates worldwide on a borderless basis. Pros and cons of global corporations: pros: growth, income, learning, development, cons: host-country issues- excessive profits, domination, hire best local talent, disrespect for customs.