GMS 200 Chapter Notes - Chapter 3: Asia-Pacific Economic Cooperation, Joint Venture, Global Sourcing

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Peter Rambert

Document Summary

Management & globalization: global economy: resources, markets and competition are worldwide in scope not national or local, globalization: growing interdependence among elements of the global economy. Involves managing operations in more than one country: global manager: culturally aware and informed on international affairs. Why companies go global: profits- greater profit potential, customers- nerw markets to sell products, suppliers- access to needed products and services, capital- access to financial resources, labour- access to lower labour costs. Global sourcing: materials or services are purchased around the world for local use. Joint ventures and strategic alliances: foreign direct investment: building, buying all or buying part ownership of a business in another country. Joint venture: operates in a foreign country through co-ownership by foreign and local partners agree to pool resources, share risks type of global strategic alliance: partnership in which foreign and domestic firms share resources and knowledge for mutual gains. Foreign subsidiaries risks and problems with strategic alliances and joint ventures solution.