Establishing a Global Presence

Prior knowledge Why do companies compete to try to get international businesses to locate in their countries? Why do companies compete to try to get international businesses to locate in their countries? What kinds of economic and social factors would attract international business to Canada? What kinds of economic and social factors would attract international business to Canada? How can an unprofitable international business improve its chances of becoming profitable? How can an unprofitable international business improve its chances of becoming profitable?

Key terms from this chapter Absolute Advantage Absolute Advantage Capital Capital Comparative advantage Comparative advantage Competitive advantage Competitive advantage Developed nations Developed nations Developing nations Developing nations Economies of scale Economies of scale GDP GDP Intellectual Capital Intellectual Capital International Organization for Standardization (ISO) International Organization for Standardization (ISO) Knowledge economy Knowledge economy Less-developed nations Less-developed nations Market-driven organizations Market-driven organizations Opportunity cost Opportunity cost Productivity Productivity Rationalization Rationalization Standard of living Standard of living Total quality management Total quality management Utility Utility

What does Global Presence even mean? Thoughts? Thoughts? How do we grow this Presence? How do we grow this Presence?

Globalization For reasons already known to you, international business growth has increased a lot since the 1950s and 1960s. For reasons already known to you, international business growth has increased a lot since the 1950s and 1960s.

Globalization Because of this growth, certain companies and therefore COUNTRIES have established themselves as well-known, for a lot of reasons: Because of this growth, certain companies and therefore COUNTRIES have established themselves as well-known, for a lot of reasons: -Good products, -Good products, -Huge market share -Huge market share -Global impact -Global impact

Canada’s case Canada is a country with global presence, even though not a lot of Canadian companies have it. Canada is a country with global presence, even though not a lot of Canadian companies have it. Name two companies that are based in Canada that have global presence? Name two companies that are based in Canada that have global presence?

Canada’s Case Country is seen as stable, safe, and attractive to investment of capital. Country is seen as stable, safe, and attractive to investment of capital. Most of our companies are domestic, or only have the US beyond our borders, with slow expansion internationally. Most of our companies are domestic, or only have the US beyond our borders, with slow expansion internationally. A lot of companies are successful internationally, but not visible. A lot of companies are successful internationally, but not visible. Still viewed as a resource exporter. Still viewed as a resource exporter.

Global Presence What about a company from your countries? What about a company from your countries?

Competitive advantage Making something better, Making something better, Cheaper, Cheaper, Selling more, Selling more, Better price, Better price, More profit, More profit, Uniqueness, Uniqueness,

How to measure? Market share, Market share, Partnerships, Partnerships, Customer demand, Customer demand, Customer loyalty, Customer loyalty, Distribution, Distribution, Service, Service, Better workers, more resources. Better workers, more resources.

ICE 3.1 (P.82 #2, 3) ICE 3.1 (P.82 #2, 3)