BUS 346 Chapter Notes - Chapter 7: Vertical Integration, Gasoline, North American Free Trade Agreement

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 346
• Professor: monica semeniuk

Document Summary

M&as: reasons for m&as, get into a new geographic market, fill gaps i(cid:374) (cid:272)o(cid:373)pa(cid:374)ies" p(cid:396)odu(cid:272)t li(cid:374)es i(cid:374) a glo(cid:271)al industry. So many korean manufacturers open facilities in tijuana to avoid those tariffs. Rather than trade a short- term gain (fee charged another company) for a long-term loss (lost competitiveness) a company will prefer to undertake investment. Internalization advantage: advantages of internalizing the business rather than leaving it to a relatively inefficient market. When it acquires companies in its distribution chain it is called forward integration. If the company has old equipment, bad relationship with workers or it is i(cid:374) a (cid:271)ad a lo(cid:272)atio(cid:374) a a(cid:272)(cid:395)uisitio(cid:374) (cid:449)o(cid:374)"t (cid:271)e suita(cid:271)le: greenfield investment can have benefits if you find a place with skilled but cheap workers. International transactions that result in payments (outflows) are reductions in the balance of payments accounts and are recorded with a minus sign. Canadian citizen buys stock in mexican company in the.