GMS 200 Lecture Notes - Lecture 3: Kfc, Insourcing, Protectionism

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Helene Moore

Document Summary

Exporting; selling locally made products in foreign markets. Importing; buying foreign made products and selling them domestically. $ value exports - $ value imports= balance of trade. Airplane best example for parts being made worldwide. Us bought a lot because they can"t be self sufficient since they can"t supply their citizens with all the goods they need/want just based off american products. Hello kitty; phenomenom licensing in the world. Fdi; foreign direct investment is building, buying all or buying part ownership of a business in another country (direct investing strategy) Joint ventures; operates in foreign country through co-ownership by foreign and local partners risk sharing-need complex contracts- less control0sometimes takeover. Global strategic alliances- partnership in which foreign and domestic firms share resources and knowledge for mutual gains---potential win win for local partner and outside partner. Foreign subsidiaries- local operation completely owned by a foreign firm. Greenfield investement- builds an entirely new operation in foreign country.