MGMT 300 1st Edition Lecture 4Outline of Previous LectureI. NewsII. Organizations EnvironmentIII. EthicsOutline of Current LectureI. GlobalizationII. Why expand?III. 5 ways of expandingIV. NEWSCurrent LectureIV. GlobalizationA. rend of the world economy toward becoming more interdependent systemB. 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 communicateC. ethnocentric- their native country, culture, language and behavior are superiorD. parochialism- narrow view in which people only see things through their perspectiveE. Polycentric-take view that native managers in foreign market best understand native practices1. Example: Mercedes plant have german managers. V. Why expand?A. 1. availability of suppliesB. new marketsC. access to financial capitalD. lower labor cost-mainE. avoid tariffs and quotasVI. 5 ways of expandingA. 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 gasolineB. importing, exporting and countertradingC. licensing and franchising- car dealerships are like franchises, pizza hut, dominoesD. joint ventures- more formal, both put up and investmentE. wholly-owned subsidaries- most riska) import quota- steel is big with thisb) embargoes- example cuban cigarsc) GATT- encourage trade betweek countries, if part of this wont have huge tariffsVII. NEWSA. Snow stormB. Community college for
View Full Document
Unlocking...