Political and cultural risk in NIE foreign markets

Abstract or Introduction

The aim of this assignment is to identify political and cultural risks in Newly Industrialised Economies that means in foreign markets in developing countries. Newly Industrialized Countries (NICs) are still more advanced than countries in the third world or less developed countries. There is not a clear definition for the status of such countries but you can find four main equal characteristics in these countries. Firstly, there is a recent industrialisation that means there is a movement from agriculture to industry. Second there are recent reforms that allow a greater political liberalisation and democracy. You can see increased social freedoms and civil rights and finally there is an increasingly open economy that allows free trade with neighbour countries. NICs often receive support from nongovernmental organisations such as the World Trade Organisation (WTO). [2] As your can see in the case “Qualcomm’s Chinese Odyssey” there can be some difficulties to enter such a Newly Industrialised Country. Qualcomm had to try several times to launch its CDMA technology in China. All in all it took the company more than five years to get the contract signed. Difficulties to enter a foreign market could either be political or cultural.