MAN 3025 Lecture Notes - Lecture 6: North American Free Trade Agreement, Mercosur, International Trade
15 Oct 2018
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Conditions: economic development- countries are categorized as either developed or developing based on per capita income, government policies, market size, financial markets, infrastructure, resource and product markets, companies must evaluate market demand. The current economic crisis has highlighted how interconnected economies are around the world. The legal-political environment: political risk- risk of lost assets, earning power, or managerial control, government involvement differs. 4: instability, takeovers, level of protectionism, reparation of natural resources, laws and regulations, managers must be concerned with the political instability of global markets. 5 (cid:862) tylized(cid:863) fa(cid:272)ts a(cid:271)out mnes: foreign-owned mnes employ 1 worker in every 5 (or 20%) in. European manufacturing, and 1 in every 7 (or 14. 3%) in us manufacturing: mnes sell 1 euro in every 4 (or 25%) of manufactured goods in. R&d: why companies expand internationally, (1) availability of supplies, (2) new markets, (3) lower labor costs, (4) access to finance capital, (5) avoidance of tariffs & import quotas.
