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

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

Document Summary

Resource supplies, product markets, and business competition are worldwide, rather than local. The process of growing interdependence of these components in the global economy. Opens doors for opportunities and threats for you company. Management in organizations with business interests in more than one country. Aware of regional developments in a changing world. Conduct for-profit transactions of goods and services across national boundaries. Market entry strategies: involves the sale of goods or services to foreign markets but do not require expensive investments. Figure 3. 3 common forms of global business from market entry to direct investment strategies. Market entry strategies: global sourcing, exporting and importing, licensing and franchising (franchising is like owning a mcdonalds) Increasing involvement in ownership and control of foreign operations (from top of the list to bottom of the list) Global sourcing: the process of purchasing materials or services around the world for local use. Exporting: selling locally made products in foreign markets.