GMS 200 Chapter Notes - Chapter 3: Foreign Direct Investment, Proxemics, Ethnocentrism

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

Document Summary

Gms200 chapter 3 global dimensions of management. Global economy = a worldwide network of interdependent countries that share resource supplies, product markets, and a competitive business environment. Globalization = process of growing interdependence among the components of the global economy. Global manager = culturally aware and informed on international affairs. There are market-entry strategies: 1) global sourcing, 2) exporting/importing, 3) licensing & franchising. There are also direct investment strategies: 1) strategic alliances + joint ventures, 2) foreign subsidiaries. 1) global sourcing = materials/services are purchased around the world for local use. 2) exporting/importing: exporting = local products are sold abroad to foreign customers. Direct exporting = selling your product directly to foreign customers: advantages: Can establish and maintain a relationship with foreign customers. Can control the pricing of your product. Get a larger share of the profit, if any: disadvantages: Managers have to learn about foreign markets.