GMS 724 Lecture Notes - Lecture 1: Foreign Direct Investment, International Business

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 724
• Professor: Howard Lin

Document Summary

Globalization: globalization is the ongoing process that deepens and broadens the relationships and interdependence among countries. International business is a mechanism to bring about globalization. International business: international business consists of all commercial transactions including sales, investments, and transportation that take place between two or more countries. Increasingly foreign countries are a source of both production and sales for domestic companies. Modes of operation in international business: merchandise exports and imports, service exports and imports, tourism and transportation, service performance, asset use. Investments: foreign direct investment (fdi, portfolio investment. Multinational enterprises: multinational enterprises (mnes) take a global approach to markets and production. Sometimes they are referred to as multinational corporations or companies (mncs) or transnational companies (tncs). Factors in increased globalization: increase in and expansion of technology, liberalization of cross-border trade and resource movements, development of services that support international business, growing consumer pressures, increased global competition, changing political situations, expanded cross-national cooperation.