GMS 200 Lecture Notes - Foreign Direct Investment, Civil Services Of India, Ramada

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Horatio Morgan

Document Summary

To access to new markets or customers (this point most important) To establish connections to foreign suppliers of raw materials. To tap into chapter funding sources (banks, venture capitalists) To take advantage of relatively abundant low-wage unskilled labour (cheap labour) immigration policy prevents low wage workers to come to canada so businesses go to them. Direct exporting selling directly to foreign customers: advantages: establish and maintain relationship with foreign customers; control pricing decisions, disadvantages: may demand managerial time and significant financial commitment. Indirect exporting selling to foreign customers through an agent or distributor: advantages: requires limited financial commitment and knowledge of foreign markets, disadvantages: no contact with foreign customers; smaller profit margin; lose opportunity to learn about foreign markets. Licensing agreement: an international marketer (i. e licensor) me permit another company to use intellectual capital (ip) such as trademarks in exchange for compensation in royalty fees.