COMM 200 Chapter Notes - Chapter 3: Outsourcing, Offshoring, Protectionism
18 Oct 2015
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The global marketplace: whether it is through operational growth, strategic alliance, formal partnerships, mergers, or acquisitions, the global marketplace is becoming home to an increasing number of businesses seeking to operate via an international based business model. Why do global: companies look to move beyond their domestic markets for a combination of reasons which are categorized as the following. Cost reduction opportunity: with labour representing one of the largest cost sectors for many manufactures, the ability to significantly impact the cost base lies with the ability of firms to reduce such labour costs. Closeness to markets: companies look to expand their business operations across the globe for the purpose of being close to markets, emerging developing economies in asia, eastern europe, the middle east and south. Its overriding objective is to ensure that trade flows smoothly, fairly, and predictability: the wto key service is listed as follows. Act as a forum for trade negotiations.
