GMS 200 Lecture Notes - Lecture 3: Franchising, Global Sourcing, North American Free Trade Agreement
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GMS 200 Full Course Notes
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Types of market entry strategy: global sourcing, exporting, importing, licensing agreement, franchising: fee paid for rights to use another firm"s name & operating method, forms of global management: Global strategic alliances: partnership, foreign & domestic firms. Foreign subsidiaries: local operation completely owned by foreign firm. Green field investment: builds new operation in foreign country: choosing joint venture: familiar with firms major business, strong workforce, expansion, values customers, local market, complications in global business environment: Political risk: potential loss in value of foreign investment due to instability. Local legal system: complex & unfamiliar laws can create problems. World trade org: resolves trade & tariff disputes among countries. Protectionism: complicate global trading relationships: economic alliances: nafta, eu, sadc (southern africa development community). Global corporation: mnc with business operations in 1+ countries. Excessive profits, economic domination: ethical issues for mnc"s about host countries: profit limit, overprices resources, foreign exchange restrictions, corruption, sweatshops, child labour, sustainable developments.