GMS 200 Chapter Notes - Chapter 3: Protectionism, Ecological Fallacy, Most Favoured Nation
28 Jun 2018
School
Department
Course
Professor
GMS Chapter 3 - Global Dimensions of Management
Global economy - resources, markets and competition are worldwide in scope
Globalization - the process of growing interdependence among elements of the
global economy
World 3.0 - is a world where nations cooperate in the global economy while still
respecting different national characters and interests
Global management - involves managing operations in more than one country
Global manager - is culturally aware and informed on international affairs
Informed about international developments, transnational in outlook,
competent in working with people from different cultures, and always aware
of regional developments in a changing world
How businesses naturally grow and go international for these reasons
Profits
Customers
Suppliers
Capital (financial resources)
Labour
Global business - conducts commercial transactions across national boundaries
Getting started: being with global sourcing, exporting/importing, and
licensing and franchising (market entry strategies)
Direct investment strategies - joint ventures and foreign subsidiaries
oRequire major capital investments
Global sourcing - materials or services are purchased around the world for local
use
International division of labour in which activities are performed in
countries where they can be done well at the lowest cost
Exporting - local products are sold abroad to foreign customers
Importing - involves the selling in domestic markets of products acquired abroad
Because the growth of export industries creates local jobs, governments often offer
special advice and assistance to businesses that are trying to develop or expand
their export markets
Licensing agreement - a local firm pays a fee to a foreign firm for rights to make or
sell its products
Franchising - a fee is paid to a foreign business for rights to locally operate using its
name, branding, and methods
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GMS 200 Full Course Notes
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Document Summary
Gms chapter 3 - global dimensions of management. Global economy - resources, markets and competition are worldwide in scope. Globalization - the process of growing interdependence among elements of the global economy. World 3. 0 - is a world where nations cooperate in the global economy while still respecting different national characters and interests. Global management - involves managing operations in more than one country. Global manager - is culturally aware and informed on international affairs. Informed about international developments, transnational in outlook, competent in working with people from different cultures, and always aware of regional developments in a changing world. How businesses naturally grow and go international for these reasons. Global business - conducts commercial transactions across national boundaries. Getting started: being with global sourcing, exporting/importing, and licensing and franchising (market entry strategies) Direct investment strategies - joint ventures and foreign subsidiaries: require major capital investments. Global sourcing - materials or services are purchased around the world for local use.
