AGEC 318 Lecture Notes - Lecture 2: Gary Hamel, Agribusiness, Multinational Corporation
14 Dec 2016
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Document Summary
Globalization the trend of the world economy toward becoming a more interdependent system. Minifirms operating world wide: small agribusinesses or related firms can get started more easily and can maneuver faster. Multinational corporation: agribusiness firm with operations in several countries. Multinational organization: non-profit organization with operations in several countries. Ethnocentric managers: believe that their native country, culture, language, and behavior are superior to all others. Geocentric manager: accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective. Why companies expand internationally: availability of supplies, newer markets, lower labor costs, access to finance capital, avoidance of tariffs and import quotas. 5 ways to expand internationally low to high risk: global outsourcing importing, exporting, and countertrading licensing and franchising joint ventures, wholly-owned subsidiaries. Global outsourcing: using suppliers outside the us to provide labor, goods, or services. Counter trading bartering goods for goods.
