GMS 200 Lecture Notes - Lecture 4: Foreign Direct Investment, Global Sourcing, Starbucks

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

Document Summary

Key concepts in the challenges of globalization: global economy globalization international management global manager. Global management = management in organizations with business interests in more than 1 country. Global manager = informed about international developments, transnational in outlook, competent in working with multicultural people, aware of regional developments in a changing world. Conduct for pro t transactions of goods and services across national boundaries. Businesses go global for: pro ts(apple, starbucks), customers(coca-cola in africa, mcdonalds), suppliers(h&m, general motors), capital, labour. Market entry strategies (dip a toe in the pond) vs. Direct investment strategies (dive into the deep end) Market entry strategies = involve the sale of goods or services to foreign markets but do not require expensive investments. Contractual relationship with a rm to do something. Foreign direct investment: building, buying all, or buying part ownership of a business in another country.