ADMS 1000 Lecture Notes - Lecture 8: Outsourcing, Massu Engira Masilamani, Foreign Direct Investment

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Eytan Lasry

Document Summary

Global context: selling to foreign markets when when getting movie sales to other countries. capital of boat, guy will have to work for 3-4 years, and will put aside saing to get back capital: how much does each person spend on food. Global context (channels for global business activity: exporting, outsourcing, licensing/franchising. Coke, mcdonalds: foreign direct investment, joint ventures/ strategic alliances. When so much money involved and not certein: mergers and acquisitions, establishing subsidiaries. Licensing// franchising: frachisee gives the capital, lower risks in both. Global context: knowledge and goodwill are taking advantage of. Foreign/ direct investment: buying a company in foreign country, setting up your own, securing source of raw materials , any company with huge resources wanting to control huge amount of empire. Mergers and acquitions: economies of scale-cheaper unit costs, don"t necessarily pass on savings to consumers, mergers may/may not create synergy-note cultureproblems, most often mergers and acquisitions fail.