GMS 200 Chapter Notes - Chapter 3: Foreign Direct Investment, Insourcing, Franchising

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

Document Summary

Resource supplies, product markets and business competition are worldwide rather than local. The process of growing interdependence of these components in the global economy. Global sourcing: is the practice of sourcing from the global market for goods and services across geopolitical boundaries. Franchising: the practice of using another firm"s successful business model. Foreign direct investment is a direct investment into production or business in a country by an individual or company of another country, either by. Buying a company in the target country or. By expanding operations of an existing business in that country. Insourcing: having people within the company do jobs that would normally be done by contractors. Operates in a foreign country through co-ownership by foreign and local partners. Foreign and domestic firms share resource"s and knowledge. Local operation completely owned by a foreign firm. Nafta north american free trade agreement (regional trade alliance) Wto world trade organization: organized by un.