ECON 1 Lecture Notes - Lecture 3: Individualism, Multinational Corporation, Franchising
Document Summary
Globalization = process of closer integration & exchange between different countries and peoples worldwide, made possible by falling trade & investment barriers, advances in telecommunications & reductions in transportation costs. >combined, factors recue costs of doing business around the world world"s market economies are becoming more integrated & interdependent. > after world war 2 : germany /japan industrial powerhouses. More recently: asian tigers (hong kong, singapore, south korea, taiwan) Engine behind globalization: multinational enterprise (mne)= a company that deploys resources & capabilities in the procurement, production, and distribution of goods and services in at least 2 countries. Mne"s engage in foreign direct investment (fdi)= a firm"s investments in value-chain. Mne"s need effective global strategy = a firm"s strategy to gain and sustain ca when competing activities abroad against other foreign & domestic companies around the world. Boeing, caterpillar, cnn, coca-cola, ibm, p&g, walmart, etc. P. 273, highlight 10. 1: stages of globalization (globalization 1. 0/2. 0/3. 0)
