GMS 200 Lecture Notes - Lecture 3: Future Orientation, Egalitarianism, Sustainable Development

• 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. 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. Exporting is a form of international business that involves selling locally made products in foreign markets. Importing is a form of international business that involves buying foreign-made products and selling them in domestic markets. A licensing agreement occurs when a firm pays a fee for the rights to make or sell another company"s products in a specified region. Franchising involves buying the rights to use another"s name and operating methods in its home country. Foreign direct investment (fdi) is building, buying all, or buying part ownership of a business in another country. A joint venture operates in a foreign country through co-ownership arrangements that pool resources and share risks and control of business operations.