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Lecture 1

GEO 334 Lecture Notes - Lecture 1: North American Free Trade Agreement, Human Capital


Department
Geography
Course Code
GEO 334
Professor
michael lecky
Lecture
1

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FDI- is when companies decide they want to invest in another country
Ex. Rolls royce wants to move into Ireland from the UK, thats an example of FDI
The main types of FDI are
1. Acquisition of a subsidiary- country comes in and buys over a company
2. Joint Ventures
3. Licensing
4. Investing in new facilities or expansion- after NAFTA, alot of American cars are being
built outside of the US, because of trade deals- people gain confidence in certain regions
Results show confidence in the economic recovery of the United States and Europe.
Rapidly developing economies continue to struggle for foreign investor confidence.
Opportunity vs. Risk
Challenges to Globalization
-Backlash against capitalism and rekindling of nationalism
-Increased protectionism of high demand resources
-Need to develop top managers with international understanding and experience
-Increasing pressure and publicity for companies to consider the social responsibility of
their actions
Ex. Occupy Wall Street- backlash trying to stop globalization- rich people 1% profit, but
poor countries get exploited
Benefits of Globalization
-Access to more markets
-Growth in developing economies
-Increased flexibility
-Less ties to specific locations
-Increased access to human capital
-Opportunity for increased efficiency
>Small and medium sized enterprises can benefit
Globalization of Information Technology
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