ADMS 1000 Chapter Notes - Chapter 6: Foreign Direct Investment, Franchising, Outsourcing

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Indira Somwaru

Document Summary

Involves many businesses than local and domestic market. Ex) nafta is a free trade bloc consisting of canada, u. s. , & mexico. Ex) european union (eu) consists of 25 countries. Ex) asian pacific economic corporation (apec)- consists of 21 countries forming free trade zone. Organizations are marketing goods and services worldwide (eg. mcdonald"s, nike, Process expanding the degree and forms of cross-border transactions among people, assets, goods and services. Refers to growth in fdi across world. Pull factors: reasons a business would gain from entering international context. Obtaining needed resources (can be cheaper, low labour cost) Push factors: forces that act upon all businesses to create an environment where competing successfully means competing globally. *first mover advantage: benefits of being among the first to establish strong positions in important world markets. Reduction in trade barriers- push to freer trade. Degree of involvement of a business has with a foreign country can vary: export/ import.