ADMS 1000 Study Guide - Final Guide: Foreign Direct Investment, Free-Trade Area, Trade Bloc

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Peter Modir

Document Summary

Globalization: process involving the integration of world economies, process that is expanding the degree and forms of cross border transactions, growth in direct foreign investment in regions across the world, shift towards increasing economic interdependence. Pull factors: reasons a business would gain from entering the international context. Push factors: forces that acts upon all businesses to create an environment where competing successfully means competing globally. The force of competition: domestic economies are being filled with foreign competitors so business may be forced to go global or some business go global in response to competitor"s actions. Also, business may go global after domestic competitors go global. First mover advantage: underscores the benefits of being among the first to establish strong positions in important world markets. Reduction in trade barriers: most powerful source of influence encouraging increased international business is the reduction in trade and investment restrictions ( i. e. nafta)