MGMT 300 1st Edition Lecture 4 Outline of Previous Lecture I News II Organizations Environment III Ethics Outline of Current Lecture I Globalization II Why expand III 5 ways of expanding IV NEWS Current Lecture IV Globalization A rend of the world economy toward becoming more interdependent system B Shrinking of time and space as our travel and the electronic media have made it much easier and less costly for the people of the globe to communicate C ethnocentric their native country culture language and behavior are superior D parochialism narrow view in which people only see things through their perspective E Polycentric take view that native managers in foreign market best understand native practices 1 Example Mercedes plant have german managers V Why expand A 1 availability of supplies B new markets C access to financial capital D lower labor cost main E avoid tariffs and quotas VI 5 ways of expanding A global outsourcing fail you can stop buying example would be buying some supplies from another country labors outside US to provide labor goods and services example is gasoline B importing exporting and countertrading C licensing and franchising car dealerships are like franchises pizza hut dominoes D joint ventures more formal both put up and investment E wholly owned subsidaries most risk a import quota steel is big with this b embargoes example cuban cigars c GATT encourage trade betweek countries if part of this wont have huge tariffs VII NEWS A Snow storm B Community college for free
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