Professional Documents
Culture Documents
Emergin
g Global
Barriers to trade are coming dow
Allowing free flow of goods,
services & capital
The volume of cross country trad
is increasing
Making the economies more
interdependent
More countries are joining the
ranks of developed world
List of developed countries
Andorra• FaroeIslands• Ireland• Monaco•
Spain• Australia• Finland• Israel• Netherlands
• Sweden• Austria• France• Italy•
New Zealand• Switzerland• Belgium• Germany
• Japan• Norway• Turkey• Bermuda Greece•
Liechtenstein• Portugal• United Kingdom•
Canada• HolySee• Luxembourg• SanMarino•
UnitedStates• Denmark• Iceland• Malta•
South Africa
High income
Upper-middle income
Lower-middle income
Low income
Strengthening of Global
Economy
Adoption of liberal economic
policies
State-owned business privatized
Deregulation adopted
Markets opened to more
competition
Commitment increased to
removing barriers to cross-border
trade and investment
Powerful Market-oriented
economies
Czech republic
Poland
Brazil
India
China
South Africa
INDICATION
insurance)
Use of assets (trademarks, patents,
Investments
Direct Investment
Portfolio Investment
Entry Modes
Exporting
Licensing
Franchising
Joint-ventures
Wholly-owned subsidiary
Turnkey Projects
Exporting
Advantages
Ability to realize location and
experience curve economies
Disadvantages
High Transport costs
Trade barriers
Problems with local marketing agents
Licensing
Advantages
Low development costs and risks
Disadvantages
Lack of control over technology
Inability to realize location and
experience curve economies
Inability to engage in global strategic
coordination
Franchising
Advantages
Low development costs and risks
Disadvantages
Lack of control over quality
Inability to engage in global strategic
coordination
Joint ventures
Advantages
Access to local partner’s knowledge
Sharing development costs and risks
Politically acceptable
Disadvantages
Lack of control over technology
Inability to engage in global strategic
coordination
Inability to realize location and
experience economies
Wholly owned subsidiaries
Advantages
Protection of technology
Ability to engage in global strategic
coordination
Ability to realize location and
experience economies
Disadvantages
High costs and risks