ADMS 1000 Lecture Notes - Lecture 8: Foreign Direct Investment, Mercosur, General Agreement On Tariffs And Trade

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Eytan Lasry

Document Summary

The integration of national economies facilitated by institutions like nafta, eu, apec, wto. The generation of a single world economic system. The expansion of the degree and forms of cross-border transactions. The growth in direct foreign investment in regions across the world. Free movement of goods/services, capital and labour is critical to globalization. Joint ventures (two companies and creating a third company) Indicates that the nationality of the organization is unclear. There is no allegiance to a particular country or location. Financial, technological, human capital are easily transferred between countries. No allegiance to host country e. g. creates jobs! Centralized decision-making (power held in home country e. g. r&d investments) Facilitates global cooperation and unites different countries and cultures. The purchase, sale or exchange of goods or services across countries. Colonial powers (britain, france, spain, netherlands) conquered countries to gain access to raw materials and markets for finished products. Trade protectionism protects domestic economies through import restrictions.