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1 2: Guide to analyze


country¶s attractiveness
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- Political, economic, and legal systems o a country
raise important ethical issues that have implications
or the practice o international business
- The political, economic, and legal environment o a
country clearly in luences  &## "
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Product
Business
Company
Market or industry
Country

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Economic
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Political
Cultural
ðeligious ðeturn
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igh
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igh return attractiveness
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Low Low risk
attractiveness Low return

Low
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many organizations publish country
assessment results based on various
economic/political/social actors)

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4 33# assessment measures the °   in the
country or a irm¶s products or services based on:
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 Growth
 uality o demand.
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a company¶s presence in a country given the ollowing actors:
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w Growth?
w Size?
w Customer quality

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- Is the country a critical
source o 6 5 8 w Intensity o rivalry
w Skilled personnel?    w Entry barriers
w ðaw materials? 11   w Bargaining power o
w Components? suppliers & customers
w Labor? - Is the business
w Technology? w Pro itable short-term?
w Innovation? 6< w Pro itable long-term?
- uality o in rastructure w Tax
supporting services w Subsidies
- Location
w In rastructures
w Government contracts
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 w Does a presence in this country

     increase competitiveness?


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are probable disruptions owing to internal or external events or
regulations resulting rom political action o governments or societal crisis
and unrest.
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expose business per ormance to the extent that the economic
business drivers can vary and there ore put pro itability at stake.
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are related to non-economic distortion o the competitive
context owing to cartels and networks as well as corrupt practices. The
competitive battle ield is not even and investors who base their competitive
advantage on product quality and economics are at disadvantage.
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are those that directly a ect the bottom line, either because
government regulations and bureaucracies add costly taxation or constraints
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to oreign investors or because the in rastructure

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6

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 ssets destruction war, riots...)  idnapping  Market disruption
Èssets spoilation expropriation) È Gangsterism È Labor unrest
Èssets immobility trans er, È arassment È ðacketing
reeze) ÈSupply shortages

6  6 6 5 6 1<


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5 
È Economic growth 
È Variability
76 
È In lation  Corruption
È Cost o inputs 1 

È Cartels
È Exchange rates  8
È Networks
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- Power, telecommunication, - Nationalistic pre erences
transport - Constraints on local capital, local
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 content, local employment

     -Taxes   


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