GMS 200 Lecture Notes - Lecture 3: Foreign Direct Investment, Franchising, North American Free Trade Agreement

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

Document Summary

Ethics issue: firms engage in public and government lobbying. Inputs- intelligence info- from stakeholders and external environment. Example: boeing and rivals fight in the media over contracts. Lobbying involves conversations behind closed doors between corporate lobbyists and politicians. The issue with lobbying is that it can be seen a waste of valuable resources politicians time is very valuable and scarce and therefore should lobbyists really. Globalization- worldwide interdependence of resource flows, product markets, and business competition. Global sourcing- materials or services are purchased around the world for local use. Exporting- is a form of international business that involves selling locally made products in foreign markets. A licensing agreement occurs when a firm pays a fee for rights to make or sell another company"s products in a specified region. Franchising involves buying the rights to use another"s name and operating methods in its home country. This is good because you do not have to be everywhere that you run your business.