COMM 103 Chapter Notes - Chapter 3: Birmingham City Centre, Trade Facilitation, Black Market Activities

• School: Queen's University
• Department: Commerce
• Course: COMM 103
• Professor: Gregory Libitz

Document Summary

With the ongoing technological revolution, companies all over the world are able to actively compete beyond their domestic markets buy and sell on a worldwide basis. The global marketplace is becoming home to an increasing number of businesses via operational growth, strategic alliances, formal partnerships, mergers and/or acquisitions. Managers are faced with more challenges as operations become spread across the globe. As domestic markets become saturated with competition, they look for new markets: organizational growth from entering foreign markets. This is a two-way street you enter foreign markets, companies in foreign market enter your domestic market. Organizations will generally locate in, and purchase inputs from, countries where the cost of resources enables them to generate a competitive advantage: low labour costs & relatively high occupational skills lower costs = more profit. Outsourcing operations of a business is attractive because of lower labour costs.