ADMS 1000 Lecture Notes - Lecture 8: Foreign Direct Investment, Tim Hortons, Multinational Corporation

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Peter Modir

Document Summary

The generation of a single world economic system. Expansion of the degree and forms of cross border transactions. The growth in direct foreign investment in regions acorss the world. Raw materials in order to produce goods and services. Internal motivating factors for a business to go global. Have non core business contracted out to a third party. You can contract it outside of current country. You dont own the product or process. Arrangement whereby the owner of a product or process is paid a fee or royalty from another company in return for granting them permission to reproduce or distribute the product or process. Shares some of the advantages of licensing, in that both are relatively lower risk forms of global business. Common type of business activity in canada and elsewhere. Tim hortons is an example of canadian corporation that franchised its business across canada and the u. s. Direct investment in foreign operations - foreign direct investment (fdi)