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.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Political risks
- Political view
- Economic view
- Legal view
- Cultural risks
- Strategies to manage risks
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This assignment examines the political and cultural risks associated with entering foreign markets in Newly Industrialized Economies (NIEs), focusing on developing countries. It explores the challenges faced by multinational companies in such environments and offers insights into the factors that contribute to these risks.
- Political risks in NIEs, including political systems, economic systems, and legal frameworks
- Cultural risks in NIEs and their impact on business operations
- Strategies for managing political and cultural risks in foreign markets
- Case studies illustrating the complexities of navigating political and cultural challenges in NIEs
- The role of governmental interventions and economic infrastructure in influencing business operations
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter provides a general overview of the assignment's focus on political and cultural risks in NIEs, highlighting the complexities of entering these foreign markets and using the case of Qualcomm's experience in China as an example. It also introduces the concept of NIEs and their characteristics.
- Political Risks: This chapter delves into the political risks associated with operating in developing countries, examining political systems, economic systems, and legal frameworks. It discusses the implications of collectivism versus individualism, democracy versus totalitarianism, and the potential for political instability, including revolutions, civil wars, and external aggression.
- Economic View: This chapter explores the economic risks associated with NIEs, focusing on the impact of government intervention in international trade, the availability of economic infrastructure, and the potential for transfer risks, such as currency fluctuations and devaluation crises. The chapter also examines the role of political factors in shaping economic conditions and the challenges of predicting and managing economic risks in developing countries.
Schlüsselwörter (Keywords)
The key concepts explored in this assignment include political and cultural risks, Newly Industrialized Economies (NIEs), developing countries, foreign market entry, political systems, economic systems, legal frameworks, government intervention, economic infrastructure, transfer risk, case studies, Qualcomm, China, and Enron.
- Citation du texte
- Marieluise Bruch (Auteur), 2004, Political and cultural risk in NIE foreign markets, Munich, GRIN Verlag, https://www.grin.com/document/38038
