BU491 Lecture Notes - Lecture 17: Capital Market, Russian Architecture, Herd Behavior
Document Summary
If western companies don"t develop strategies for engaging across their value chains with developing countries, they are unlikely to remain competitive for long. That process must start with a thorough understanding of the differences between the countries" market infrastructures. How to map institutional contexts: executives need to figure out how the product, labour and capital markets work, and don"t work, in their target countries. This will help them understand the differences between home markets and those in developing countries. The five contexts framework places a superstructure of key markets on a base of sociopolitical choices: many multinational corporations look at either the macro factors or some of the market factors, but few pay attention to both. Context 2: openness: often talk about the need for economies to be open, companies can get into countries that don"t allow foreign investment by, entering into foreign investment, entering into joint ventures, or, by licensing local partners.
