MGCR 382 Study Guide - Final Guide: Foreign Exchange Risk, Cultural Homogenization, Offshoring

• School: McGill University
• Department: Management Core
• Course: MGCR 382
• Professor: xxx

Document Summary

Globalization: widening set of interdependent relationship among people, firms, and countries. Economies of scale: cost advantages due to size, output or scale of operation . Bargaining power: superior ability to exert influence due to size, output or scale of operation vis a vis suppliers and retailers, labor. Learning: you want to play with the best customers who are discerning . Differentiation: distinguishing product from others in a way that increases customer"s willingness to pay. Outsourcing: someone else does the work for us. Reshoring: is the practice of bringing outsourced personnel and services back to the location from which they were originally offshored. Normalizing risk: sources of risk: political risk, demand volatility, supply volatility, operational risk, foreign exchange risk volatility pool risk across locations . Culture: is learned - shared by a group - norms - values - beliefs - behaviours . Cultural homogenization absorption of local cultures by a dominant one.