Country Analysis: International Business Strategy

Topics: Economics, Economic system, Political philosophy Pages: 4 (475 words) Published: December 28, 2012
A Framework to Identify and Evaluate the National Business Environment

Abhinaw Saurabh Akhil Kaushal P Akshay Awasthi

Need to understand the external environment that influences business Components of country analysis framework:  Strategy – Nation’s implicit and explicit goals & policies  Context – Nation’s resources, “Players” and “Rules”  Performance – Economic, Political, Social

Strategy: Country’s path to achieve its vision Path is defined by: I. II. III. IV. V. Goals Priorities of Goals Policies Inter-relation of policies Effect and Influence on features of Context

Economic – Improved public welfare, GNP/capita, low unemployment, stable prices, rising consumption Political – National power, Sovereignty, Stability Social – Reduction of income inequality, Improvement in education/health/housing

Policies are targeted towards national goals Policies mostly considered for analysis: Fiscal, Monetary, Trade, Exchange-Rate, Sectoral Policies (Education, Telecom, Agri) Govt. policies are more broad and macro Policy - Centralized/Decentralized decision making Policy Orientation – External / Inward

Contextual components define the national system to allocate country's resources. What are resources ?

a) Human b) Natural c) Physical d) Technological

Game : The way resources are affected by other contextual components. The Players in the Game : Unitary entities with distinct interest and incentives. They transform the system. a) Firms b) Govt Actors c) Non-Govt Organizations

Rules of the Game -reduce uncertainty by establishing a stable structure to human interaction

  

Impacts economic system Defines social fabric Implies about Business environment

a) Formal

- Political : polity , treaties , contracts , fundamental rights - Economic : property rights , tax system , monetary policies - Change involves legislative and judicial levels

b) Informal...
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