BUSI 1600U Lecture Notes - Protectionism, Franchising, Foreign Direct Investment
Document Summary
Globalization : companies manufacture, finance and market worldwide. Canada represents a potential market of only 33. 6million customers. Dumping : selling cheaper in foreign markets than at home. Protectionism: using government regulations to keep foreign goods out. Social policy: a political strategy of doing something significantly towards the population. Balance of trade: the relationship between exports and imports. Balance of payments:the difference between money coming into a country (from exports) and money leaving the country (for imports). Current account: the difference between money coming in and going out of the country from all sources. Franchising : is an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory. Contract manufacturing: involves a foreign company"s production of private-label goods to which a domestic company then attaches its own brand name or trademark.
