GMS 200 Study Guide - Ethnocentrism, Masculinity, Multinational Corporation

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Helene Moore

Document Summary

Foreign direct investment (fdi) is building, buying all, or buying part ownership of a business in another county. In sourcing- job creation through foreign direct investments (call. Joint ventures- operates in a foreign country through co-ownership by foreign and local partners----->risk sharing --need complex contacts-less control-sometimes takeover. Global strategic alliances- a partnership in which foreign and domestic firms share resources and knowledge for mutual gains ------>potential win win for the local partner and outside partner. Foreign subsidiaries- local operation completely owned by foreign firms. Greenfield investment-builds an entirely new operating in a foreign country. Political risk- the potential loss in value of a foreign investment due to instability and changes in host country. Local legal systems- complex and unfamiliar laws can create problems. World trade organization- resolves trade and tariff disputes among countries. Protectionism- discourage foreigners to come into there country to sell to protect there own local business. Quotes- after a certain amount you can not import anymore.