GMS 200 Chapter Notes - Chapter 3: Southern African Development Community, North American Free Trade Agreement, Foreign Direct Investment

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Sui Sui

Document Summary

Key concepts in the challenges of globalization: Resource supplies, product markets, and business competition are worldwide, rather than local. The process of growing interdependence of these components in the global economy. Management in organizations with business interests in more than one country. Aware of regional developments in a changing world. Conduct for-profit transactions of goods and services across national boundaries. Involve the sale of goods or services to foreign markets but do not require expensive investments. Figure 3. 1 common forms of global business from market entry to direct investment strategies. Process of purchasing materials or services around the world for local use. Selling locally made products in foreign markets. Buying foreign-made products and selling them domestically. One firm pays fee for rights to make or sell another company"s products. Fee is paid for rights to use another firm"s name and operating methods. Foreign direct investment is building, buying all, or buying part ownership of a business in another country.