GMS 200 Chapter 3: Chapter 3.docx

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

Document Summary

Globalization the process of growing interdependence among elements of the global economy. Global management involves managing operations in more than one country. Global manager one who is culturally aware and informed of international affairs. Global business conducts commercial transactions across national borders. Reasons include greater profits, more customers, access to suppliers, lower labour costs and easier access to financial resources (capital). A common first step into international business is global sourcing the process of purchasing materials, manufacturing components or business services from around the world. A second form of international business is importing selling locally made products in foreign markets. The opposite of importing is exporting buying foreign made products and selling them in domestic markets. A third form of international business is the licensing agreement, where foreign firms pay a fee for rights to make or sell another company"s products in a specified region.