How does a company decide which countries to target?
- Created by: Sarah Togwell
- Created on: 28-02-14 15:35
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- Where to go?
- Level of Economic development- Income levels, HDI used
- MEASURED BY: Income (GDP) levels but often better to use HDI
- HDI has three strands:Income, life expectancy and time spent in school (education)
- MEASURED BY: Income (GDP) levels but often better to use HDI
- Legal framework
- most coutries do have sound and legal framework but they can be slow and unpredictable
- - If some of the law enforcement agencies are corrupt-system may fail to protect foreign investors interests.
- - without adequate legal safeguards, businesses may be reluctant to invest.
- most coutries do have sound and legal framework but they can be slow and unpredictable
- Government policy
- tax regime important e.g Corporation tax also degree of Protectanism e.g high tariffs can be deterrant as can make export markets unattractive
- Political stability and corruption
- Need stability, not civil unrest or Wars.
- political unrest is unattractive to businesses unless need to be there e.e Oil companies, Corruption can be a endemic in some countries.
- Need stability, not civil unrest or Wars.
- Ease of setting up a business
- Natural resources and commodity prices
- Infrastructure
- Language and culture
- Level of Economic development- Income levels, HDI used
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