ITM 100 Lecture Notes - Lecture 4: Foreign Direct Investment, Global Sourcing, Insourcing

• School: Ryerson University
• Department: Information Technology Management
• Course: ITM 100
• Professor: Alexander Cram

Document Summary

Key concepts in the challenges of globalization: global economy, globalization, global manager can go anywhere in the world. Global economy: resource supplies, product markets, and business competition are worldwide, rather than local. Globalization: the process of growing interdependence of these components in the global economy. Insourcing having people within the company do jobs that would normally be done by contractors. Joint ventures: operates in a foreign country through co-ownership by foreign and local partners, ex. Global strategic alliances: an agreement between two or more parties to pursue a set of agreed upon objectives needed while remaining independent organizations. A strategic alliance will usually fall short of a legal partnership entity, agency, or corporate affiliate relationship foreign subsidiaries. In 2001, the coca-cola company and procter & gamble declared a joint venture to make use of coca cola"s massive distribution system to improve reach of p&g products. Amazon web services and mcafee: the alliance helps clients adopt amazon web.