Ch.5

require major capital commitment

involve sale of goods/services

designed to help companies exploit their existing core capabilities to expand into foreign markets

uses subsidiaries in each country in which the company does business

purchasing goods or services around the world for local use

selling locally made products in foreign countries

buying foreign made products and selling them in domestic markets

foreign firm pays fee for rights to make or sell another company's products in a specific region

buys the right to use another's name in home country (i.e McDonalds)

operates in a foreign country through co-ownership by foreign and local partners

profits, new market, raw materials, financial capital, lower labor cost

the process of growing interdependence among elements of the global economy

used to describe management in business and organizations with interests in more than one country

culturally aware and informed on international affairs

conducts for-profit transactions of goods/services across national boundaries

used to describe job creation that results from foreign direct investment

local operation completely owned and controlled by a foreign firm

importing/exporting, global sourcing, licensing/franchising

foreign subsidiaries and joint ventures