GMS 724 Lecture Notes - Lecture 9: Retained Earnings, Mercosur, Trade Bloc

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

Document Summary

Because all companies have limited resources, they must be careful in making the following decisions: In which countries to locate sales, production, and administrative and auxiliary services. The amount of resources and eforts to allocate to each country where they operate. Expansion of sales is probably the most important factor motivating companies to engage in international business, because they assume that more sales will lead to more proits. Thus it is vital for them to decide where best to make those sales. Companies must consider variables other than income and population when estimating potential demand for their products in diferent countries. Consumers in developing economies do not necessarily follow the same patterns as those in higher-income countries. In china, for example, consumers have leapfrogged the use of landline telephones by jumping from having no telephones to using cellular phones almost exclusively.