BSM 600 Chapter Notes - Chapter 9: Multinational Corporation, Comparative Advantage, Dry Cleaning

• School: Ryerson University
• Department: Business Essentials
• Course: BSM 600
• Professor: Tim Pervin

Document Summary

Foundations of strategy: chapter 9 - global strategies and the multinational. Glossary: sheltered industries, trading industries, multidomestic industries, global industries, comparative advantage, clusters, strategic alliances, cross-subsidization. If a country spends more than it raises in taxation in a year, then it has an annual deficit. Because of trade and financial links, problems in one part of the global economy are now quickly transmitted around the world in a chain reaction. There is a power of internationalization to transmit and amplify local economic factors. Internationalization is the most important and pervasive force that has reshaped the competitive environment of business during the past half century. It has been a source of expanding opportunity for both firms and individuals resulting in widening consumer choice, huge increases in efficiency and growth options for both large and small firms. It occurs through 2 mechanisms: trade and direct investment.