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Globalization is happening because of:. Trade FDI (Foreign Direct Investment) Regional Cooperation Interest Groups. FDI – Build Greenfield. No available acquisition Local government requirements Local financing for construction Problems associated with local companies - management
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Globalization is happening because of: • Trade • FDI (Foreign Direct Investment) • Regional Cooperation • Interest Groups
FDI – Build Greenfield • No available acquisition • Local government requirements • Local financing for construction • Problems associated with local companies - management - labor - technology - debt - reputation
When buying FDI’s look at • Labor • Management • Organizational structure • Goodwill • Production facility • Brand identification • Easier access to local capital • Quicker start up • Avoid inefficiencies
Countervailing Forces to Globalization • Religion • Government • Geographic Groups • Regionalization