GMS 200 Lecture Notes - Lecture 3: Foreign Direct Investment, Global Sourcing, Franchising

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Deborah De Lange

Document Summary

Globalization is the process of growing interdependence among the components of the global economy. Global sourcing: a common first step into international business is global sourcing, which is the process of purchasing materials or services from around the world for local use. Foreign subsidiaries: a foreign subsidiary is a local operation completely owned and controlled by a foreign firm. While the subsidiary can be acquired, it may be build entirely by new greenfield investments: asian global business [wto video] http://www. youtube. com/watch? v=uyanj2smyqk. The world trade organization is an international organization that monitors international trade and tries to resolve disputes among countries about tariffs and trade restrictions. The wto members agree to give one another most favored nation status which gives trading partner most favourable treatment for imports and exports. Protectionism is a call for tariffs and favourable treatment to protect domestic industries from foreign competition. Nafta (the north american free trade agreement) is a trade agreement that links.