GMS 200 Lecture Notes - Lecture 3: Market Entry Strategy, Self-Awareness, Proxemics

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Horatio Morgan

Document Summary

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. 5 reasons a company would want to conduct business in global markets. Direct exporting sell your product directly to foreign customers. Indirect exporting sell your product to foreign customers through an agent or distributor abroad. Can establish and maintain a relationship with foreign customers. Can control the pricing of your product. Get a larger share of profit, if any. Managers have to learn about foreign markets. Takes more time, energy and money than you may be able to afford. Allows you to continue to concentrate on your domestic business. No opportunity to develop a relationship with foreign customers. Licensing agreement pay another company a fee for the right to make or sell a product in a particular country or region.