GMS 200 Chapter Notes - Chapter 3: Most Favoured Nation, Ecological Fallacy, Ethnocentrism

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Shavin Malhotra

Document Summary

Global economy resources, markets and competition are worldwide in scope. Globalization process of growing interdependence among element of the global economy. Reasons to go global = more profit, customers, suppliers, capital and labour. Global management involves managing operations in more than one country. Global manager culturally aware and informed on international affairs. Global business conducts commercial transactions across national boundaries. Global sourcing material or services are purchase around the world for local use. Exporting local products are sold aboard to foreign customers. Importing involves the selling in domestic markets of products acquired aboard. Licensing agreement local firm pays a fee to foreign firm for rights to make or sell its products. Franchising - a fee is paid to foreign business for rights to locally operate using its name, branding and methods. Foreign direct investment building, buying all, or buying part ownership of a business in another country. Insourcing job creation through foreign direct investment.