GMS 200 Lecture Notes - Lecture 3: Franchising, Global Sourcing, Comparative Advantage

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

Document Summary

Comparative advantage occurs when one country can produce a good or service at a lower opportunity cost than another. Is the practice of sourcing form the global market for goods and services across geopolitical boundaries. Global sourcing often aims to exploit global efficiencies in the delivery of a product or service. These efficiencies include low cost skilled labor, low cost raw material and other economic factors like tax breaks and low trade tariffs. Global mindset is defined as one that combines an openness to and awareness of diversity across cultures and markets with a propensity and ability to see common patterns across countries and markets. What are the three dimensions of the global mindset: (midterm and final. Intellectual capital : information and knowledge of other parts of the exam) world that a company knows. (for example, if you"re going to china you need to know their culture and standards, you need to know about your competitors. )