GMS 200 Lecture Notes - Lecture 1: Southern African Development Community, North American Free Trade Agreement, Multinational Corporation

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Lori Anne Heckbert

Document Summary

Political risk: potential loss in value of a foreign investment due to instability and changes in host country. Local legal systems: complex and unfamiliar laws can create problems. World trade organization resolves trade and tariff disputes among countries. Regional economic alliances: nafta (north american free trade agreement, eu (european union, sadc (southern africa development community) Global corporation: mnc (multinational corporation) with extensive business operations in moer than one foreign country. Transnational corporation: mnc operates worldwide on a borderless basis. Host-country benefits of multinational corporations: larger tax bases. Wednesday, april 6, y: increased employment opportunities, technology transfers, introduction of new industries, development of local resources. Host-country complaints of multinational corporations: excessive profits, economic domination, interference with government, hire best local talent, limited technology transfer, disrespect for local customs. Culture: the shared set of beliefs, values, and patterns of behaviour common to a group of people. Wednesday, april 6, y: confusion and discomfort a person experiences in an unfamiliar culture.