GMS 200 Lecture Notes - Lecture 3: Multinational Corporation, Individualism, Insourcing

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

Document Summary

Key concepts in the challenges of globalization: global economy, globalization. Global economy: resource supplies, product markets and business competition worldwide rather than locally. Globalization: the process of growing interdependence of these components in the global economy. Types of market entry strategies: global sourcing: services across geopolitical boundaries. Is the practice of sourcing from the global market for goods and: exporting. Is the practice of using another firm"s successful business model. Insourcing: having people within the company do jobs that would normally be done by contractors. Joint ventures: operates in a foreign country through co-ownership by foreign and local partners. 1) foreign and domestic firms share resources and knowledge. 2) foreign subsidiaries, which local operations are completely owned by foreign firms. Regional economic alliance: nafta north american free trade agreement, eu european union, wto world trade organization. Global corporation: multinational corporation with extensive business operations in more than one foreign country. Transactional corporation: multinational corporation operates worldwide on a borderless basis.