GMS 200 Lecture Notes - Lecture 3: World Trade Organization, North American Free Trade Agreement, Protectionism

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

Document Summary

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 a domestic market. 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 name. Foreign direct investment (fdi) is building, buying all, or buying part ownership of a business in another country. A join venture operates in a foreign country through co-ownership arrangement that pool resources and share risks and control of business operations. A foreign subsidiary is a local operation completely owned and controlled by a foreign firm. While the subsidiary can be acquired it may be built entirely new by greenfield investments.