GMS 200 Lecture Notes - Lecture 3: World Trade Organization, Foreign Direct Investment, Joint Venture

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

Document Summary

Process of growing interdependence among the components of the global economy. Global sourcing: buying materials/services from around the world for local use (part of inte. Out sourcing: going out there for other types of services/ materials. Exporting: selling locally made products in foreign markets. Importing: buying foreign products & selling them in domestic markets. Foreign exchange transactions (also known as 4x): transactions made w/ foreign countries their currency = can add on costs) Licensing agreement - firm pays a fee for right to make/sell product of another country in. People have to pay royalty fee to use this. Licensing ip address to other people, limit use so other have to pay for it. Risky to use (even if patent- originally your idea, first one to think of it, other people giving you credit) Franchising - buying the rights to another company"s name & operating method in its hom.