GMS 522 Study Guide - Final Guide: Economic Integration, Institute For Operations Research And The Management Sciences, Sildenafil
24 Apr 2018
School
Department
Course
Professor
Document Summary
The cost of transferring the technology of a company to a company in a foreign jurisdiction. Transfer pricing: pricing of products sold to members of the same corporate family. Implications of transfer pricing: global taxation, competitiveness, motivation of subsidiary managers. Methods of calculating transfer prices: input is transferred from parent to subsidiary at a price that equals, cost based approach the parent"s cost of acquisition. Parallel distribution (gray trade: sale of authentic and legitimate products sold by non authorized dealers. Conditions for gray trade (to develop: wide price discrepancies, limited availability. Individualism vs. collectivism: power distance, uncertainty avoidance, masculine vs. feminine. Political risk index (pdi: focuses on socio-political conditions in the country primarily the fractionalization of groups. Globalization: process by which businesses develop international influence or start operating on an international scale. Types of globalization: globalization of production (dispersal of production activities, globalization of markets (buyer preferences) Drivers of globalization: market factors, cost factors, environmental factors, competitive factors.
