GMS 200 Chapter 3: Chapter 3 - Global Dimensions of Management.docx

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Shavin Malhotra

Document Summary

There are 3 market entry strategies: global sourcing, exporting and importing, licensing and franchising. There are also 2 direct investment strategies, joint ventures and foreign. Each of these has increased ownerships and involvement in foreign operations. In the list below it goes form least involvement to highest involvement: global sourcing. Materials and services are purchased around the world for local use. This saves money by taking advantage of international wage gaps, by sourcing products in countries that can produce them at the lowest cost (ex: china: exporting and importing. Exporting local products are sold abroad to foreign customers: growth of export industries creates local jobs. The opposite side is importing selling products acquired abroad in the local market: this causes local markets to lose jobs, because the money goes to foreign countries, licensing and franchising. In a licensing agreement, a foreign firm pays a fee for rights to make or sell another company"s products in a specified region.