GMS 200 Chapter Notes - Chapter 5: North American Free Trade Agreement, Franchising, Ethnocentrism

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

Document Summary

Key concepts in the challenges of globalization: global economy, globalization, global manager. Political and economic alliance european countries that agreed to support mutual economic growth. Expanding to at 22 member countries with 375 million consumers. The americas: north american free trade agreement (nafta) Agreement for free flow of goods and services between the canada, mexico, and united states. Free trade of the americas (ftaa) alaska to chile is a possibility. South african development community (sadc) links 14 countries in trade and economic development. Reasons for engaging in international business: profits, customers, capital. Market entry strategies involve the sale of goods or services to foreign markets but do not require expensive investments. Types of market entry strategies: global sourcing. Direct investment strategies require major capital commitments but create rights of ownership and control over foreign operations. Criteria for choosing a joint venture partner: Strong local market for partner"s own products: good profit potential.