2011 ITM IB 1

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS International Business is all commercial transactions – private and governmental - between two or more countries Private companies transact for Profits Government may or may not Transactions may include Sales, Investments, Services - Transportation DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS International Business is an attitude of mind, approach of the company with a global outlook, seeking profits around the world on a planned and systemic basis DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS International Business - Large and Growing Portion of World Business Growing Importance of International Business Business carried out to Expand Sales Acquire Resources Minimize Risk DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Expand Sales Diversify Source of Sales and Supplies Domestic Market Constraints Market on Decline Domestic Recession Scarcity of Resources DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Expand Sales Diversify Source of Sales and Supplies International Market Opportunities Number of People Amount of Purchasing Power Better Availability of Resources DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Acquire Resources Better Quality & Profits Foreign Capital Finance, Technology, HR Monopoly Power IPR, Licences Govt. Policies & Regulations Tax Benefits, Incentives DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Minimize Risk Situational Advantage Business Cycles Recession & Expansion Minimize Impact of Price Swings Minimize Impact of Shortages PLC Competition Counter Competition Effectively DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Technology Production, Promotion Telecommunication Revolution Better Transportation Cost Reductions - Telecom & Transport DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Liberalisation Lower Government Barriers Consumer Desire Affluence Competition in Domestic Manufacturers DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Increase in Global Competition Global Opportunities for Domestic Manufacturers and Suppliers Faster Availability of New Product Technology Multiple Manufacturing Locations Uniformity in quality and price DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Development of Supporting Institutions Insurance WTO Banking Shipping Trade Associations Consular Services Government Agencies DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS International Business Decisions Co. Objectives Vision Co.’s Decision Present & Future Opportunities in Domestic and International Market DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS International Business Decisions Resources of the Company Skills / Technology Finance Experience Production Capabilities Marketing Capabilities DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Major Operating Objectives Profit Motives Growth Opportunities For the Company For the Country Expand Sales Capacity Utilisation Low Production Cost DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Spin-off Benefits Duty-free Imports Capital Goods Imports Improved Domestic Production Non-profit Motives Philanthropic NGOs – Education, Health, Wild Life Political Spread of Ideologies, New base DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Domestic vs. International Business Controllable Product Price Promotion Distribution Channel Domestic Environment (Uncontrollable) Political / Legal Forces Competitive Forces Economic Climate Foreign Environment (Uncontrollable) Political / Legal Forces Economic Forces Cultural Forces Competitive Forces Geography & Infrastructure Level of Technology Structure of Distribution DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS International Business Expansion Modes Exports Contractual Investment Piggy Back Trade Related E-Channel Counter Trade Indirect Direct

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS International Business Expansion Modes Strategic Alliance Contractual Investment Contract Manufacturing Trade Related Leasing Management Contract Franchising /Licensing Turnkey Projects

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS International Business Expansion Modes Assembly Unit Contractual Investment Trade Related M & A JV Green Field Wholly Owned Subsidiary

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Operating Mode Export and Import Merchandise Exports and Imports Visible Exports and Imports Tangible Goods Less Complicated Need Not Be Manufacturer or Actual User Good Growth Opportunities DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Operating Mode Export and Import Service Exports and Imports Invisible Exports and Imports Intangible Goods More Complicated Mostly Manufacturer or Actual User Good Growth Opportunities DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Operating Mode Export and Import Service Exports and Imports includes Entertainment, Travel, Tourism Performance of Services Banking, Insurance, Rental, Management, Engineering, Software, Turnkey Projects, Construction, Manpower DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Operating Mode Export and Import Service Exports and Imports includes Use of Assets Licensing Agreements Trademarks, Patents, Copyrights Franchising Agreements Royalties and Fees Use of Capital Assets DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Globalization Doing or Planning to Expand Business Globally No Distinction Between Domestic and Global Markets Global Business Dynamics for Production and Other Physical Facilities Irrespective of National Consideration DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Globalization Product Development and Production Planning for Global Market Global Sourcing of Production Factors – Man power, Technology, Finance, Raw Material from Best Source in the World Global Orientation of Organisational Structure and Management Culture DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Globalization of Business A Historical Perspective The concept of globalization can be traced back to the phenomenon of a nation-state In the initial years of human history, there were hardly any formal barriers, such as tariffs or non-tariff restrictions, for the movement of goods or visa requirements for the people DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Globalization: A Holistic Approach Economic Globalization The increasing integration of national economic systems resulting in growth in international trade, investment and capital flows DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Globalization: A Holistic Approach Financial Globalization The liberalization of capital movements and deregulations, especially of financial services that led to a spurt in cross-border capital flows DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Globalization: A Holistic Approach Cultural Globalization Convergence of cultures across the world . Political Globalization Convergence of political systems and processes around the world DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Dimensions of Economic Globalization Globalization of P roduction Globalization of Markets Globalization of Competition Globalization of T echnology Globalization of Corporations and Industries DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Drivers for Globalization Economic liberalization Technological breakthrough, ITC Multilateral / supporting institutions International economic integrations Move towards free market systems DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Drivers for Globalization Rising research & development costs Global expansion of business operations Advents in logistics management Emergence of the global customer segment DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Factors Restricting Globalization Regulatory controls Emerging trade barriers Cultural factors Nationalism War and civil disturbances Terrorism Management myopia DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Why Globalization? Maximization of Economic Efficiencies Enhancing Trade Increased Cross-border Factor Movement Improves Efficiency of Local Firms Increases Consumer Welfare DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Criticism of Globalization Developed versus Developing Countries Unequal Players in Globalization Widening Gap between the Rich and the Poor Wipes out Domestic Industry Leads to Unemployment and Mass Lay-offs DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Criticism of Globalization Creates Balance of Payments Problems Increased Volatility of Markets Diminishing Power of Nation States Shift of Power to Multinationals Loss of Cultural Identity DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Measuring Globalization Trade Openness KOF Index of Globalization A.T. Kearney/ Foreign Policy Globalization Index DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Measuring Globalization KOF Index of Globalization Economic Globalization FlowsTrade Foreign Direct Investment Portfolio Investment Income Payments to Foreign Nationals and investment income DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Measuring Globalization KOF Index of Globalization Economic Globalization Data on restrictions Mean Tariff Rate Taxes on International Trade Capital Account Restriction DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Measuring Globalization KOF Index of Globalization Social Globalization Data on Personal Contact Telephone Traffic Transfers International Tourism Foreign Population International Letters DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Measuring Globalization KOF Index of Globalization Social Globalization Data on Information Flows Internet Users (per 1000 people ) Television (per 1000 people Trade in Newspapers ( percent of GDP) DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Measuring Globalization KOF Index of Globalization Social Globalization Data on Cultural Proximity Number of McDonald's Restaurants (per capita ) Number of Ikea (per capita ) Trade in books ( percent of GDP) DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Measuring Globalization KOF Index of Globalization Political Globalization Embassies in Country Membership in International Organization Participation in U.N. Security Council Mission International Treaties DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Measuring Globalization A.T. Kearney/ Foreign Policy Globalization Index 72 countries and 87 percent world population B ased on 12 variables in four categories E conomic Integration P ersonal Contact T echnological C onnectivity P olitical E ngagement DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Measuring Globalization A.T . Kearney/ Foreign Policy Globalization Index Top 20 Most Globalized Countries 1 . Singapore 2.  Hong Kong 3.  Netherlands 4.  Switzerland 5.  Ireland 11.  Sweden 12. U K 13.  Australia 14.  Austria 15.  Belgium 6 .  Denmark 7.  United States 8.  Canada 9.  Jordan 10. Estonia 16 .  New Zealand 17.  Norway 18.  Finland 19.  Czech Republic 20.  Slovenia DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS A.T. Kearney/ Foreign Policy Globalization Index India Rank 71 st 70% Rural Population 5% Internet Users Less than 50% population to power grid DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Response Strategies to Globalization Forces for Emerging Market Companies Defender Extender Dodger Contender DR. MANOHAR PANDIT

INTERNATIONAL BUSINESS: 

International Orientations Ethnocentrism Home Country Orientation Polycentrism Host Country Orientation Reginocentrism Regional Orientation Geocentrism World Orientation I NTERNATIONAL B USINESS

INTERNATIONAL BUSINESS: 

External Influences Political Science Political Policies Law Legal Practices Anthropology Values Sociology Attitudes Psychology Beliefs Economics Economic Forces Geography Geographical Influences Competition Competitive Strategies I NTERNATIONAL B USINESS

INTERNATIONAL BUSINESS: 

External Influences I NTERNATIONAL B USINESS

INTERNATIONAL BUSINESS: 

External Influences Economic Systems Communism All resources owned and shared by people for the benefit of the society Government Controls Productive Resources Determines Jobs Production Prices Education And Everything Centrally Planned Economy USSR, North Korea, Vietnam, Eastern Europe, China – Non-market Economy, Weak Economy, Large Foreign Debt I NTERNATIONAL B USINESS

INTERNATIONAL BUSINESS: 

External Influences Economic Systems Socialism Govt. control less than communism Govt. owns & operates large enterprises Small business to private ownership Poland and France, two ends of socialism spectrum Sweden in the middle Sweden gave generous benefits to employees which were misused I NTERNATIONAL B USINESS

INTERNATIONAL BUSINESS: 

External Influences Economic Systems Capitalism Free Market System Allows Competition Freedom To Customers As Well As Manufacturers USA Managerial Capitalism UK Personal Capitalism Germany Cooperative Capitalism Ideal Free Trade Market Is Hong Kong World’s Freest Economy I NTERNATIONAL B USINESS

INTERNATIONAL BUSINESS: 

Macroeconomic Issues Economic Growth 9 / 11 , 26 /11 1997 Asian Financial Crisis Dot Com Burst Global Terrorism Emerging Economies May Have a Higher Growth With Dangers of Political Instability I NTERNATIONAL B USINESS

INTERNATIONAL BUSINESS: 

Economic Development New world order Fall of communism Ideological evolution Universalisation of Western liberal democracy Retreat towards the tradition, resurgence of Islam Fundamentalism I NTERNATIONAL B USINESS

INTERNATIONAL BUSINESS: 

Macroeconomic Issues Macroeconomic Issues Inflation CPI (Consumer Price Index) PPP (Purchasing Power Parity) I NTERNATIONAL B USINESS

INTERNATIONAL BUSINESS: 

Economic Freedom Assessing 10 Factors Business Freedom Trade Freedom Fiscal Freedom Government Size Monetary Freedom Investment Freedom Financial Freedom Property Rights Freedom From Corruption Labour Freedom I NTERNATIONAL B USINESS

INTERNATIONAL BUSINESS: 

World Rank: 123 ECONOMIC FREEDOMS of India Score Factor Avg . 54.4 Business Freedom 64.3 30.0 Investment Freedom 48.8 51.0 Trade Freedom 73.2 40.0 Financial Freedom 49.1 73.8 Fiscal Freedom 74.9 50.0 Property Rights 44.0 77.8 Government Size 65.0 35.0 Fdm . from Corruption 40.3 69.3 Monetary Freedom 74.0 62.3 Labor Freedom 61.3 I NTERNATIONAL B USINESS

INTERNATIONAL BUSINESS: 

External Influences Political Environment Political Systems Types of Government Parliamentary (Open) Absolutist (Closed) Two Party USA, UK Monarchy Saudi, UAE Multiparty India, France, Israel Dictatorship Saddam in Iraq Single Party Egypt, Syria, Mexico Dominated one party USSR, Cuba, Libya Parliamentary with Monarchy UK, Japan I NTERNATIONAL B USINESS

INTERNATIONAL BUSINESS: 

External Influences Political Risks Confiscation Expropriation Nationalisation Domestication General Instability Risk Ownership / Control Risk Operation risk Transfer Risk Privatisation Promotion of competition and efficiency, reduction of debt & subsidies I NTERNATIONAL B USINESS

INTERNATIONAL BUSINESS: 

External Influences Political Risks Indicators Of Political Instability Social Unrest Attitudes of Nationals Policies of Host Government War Management of Political Risk Avoidance Insurance Govt. Insurance, Overseas Pvt. Investment Corp. OPIC, US Govt. Non Profit Firm. Multilateral Investment Guarantee Agency (MIGA) I NTERNATIONAL B USINESS

INTERNATIONAL BUSINESS: 

External Influences Political Risks Measures To Minimize Political Risk Stimulation of Local Economy Local Sourcing Exports FDI Employ Nationals Jobs, Contracts Sharing Ownership Cathay Pacific in China SEZs I NTERNATIONAL B USINESS

INTERNATIONAL BUSINESS: 

External Influences Political Risks Measures To Minimize Political Risk Being Civic Minded Microsoft Singapore Airlines Political Neutrality Behind the Scenes Lobby Observation of Political Mood and Reduction in Exposure Other Measures McDonalds No Beef I NTERNATIONAL B USINESS

INTERNATIONAL BUSINESS: 

Culture What is culture? What its characteristics are? How culture affects consumer behaviour ? Culture plays significant role in influencing consume perception, influences preference and purchase. Marketing Mix can be effective as long as it is relevant to given culture Culture – Set of traditional beliefs and values, transmitted and shared in a given Society. Culture is a total way of life and thinking pattern that is passed on from generation to generation I NTERNATIONAL B USINESS

Levels of Culture: 

Levels of Culture National Culture Sub Culture Organisational Culture Occupational Culture I NTERNATIONAL B USINESS

Slide 67: 

Culture Culture Its Characteristics Prescriptive - Purchase Decisions That Are Socially Acceptable Socially Shared - Based On Social Interaction & Creation Facilitates - Advertising & Communication Communication Learned - Not Genetically Passed on , Learned & Acquired I NTERNATIONAL B USINESS

Slide 68: 

Culture Culture Its Characteristics Subjective - Different Ideas About Same Object. Unique & Arbitrary Enduring - Shared & Passed From Generations To Generations Cumulative - Broader Based, Adapts New Ideas, Discards Old Dynamic - Adapts To New Situations And Knowledge I NTERNATIONAL B USINESS

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Culture Influence On Consumption - Food Consumption Of Beef In US And In India Cold Cuts In Russia Chinese Eat Reptiles, Raw Beef In Ethiopia French Eat Snails Americans - Broiled Chicken , Indian Food - Tandoori Halal For Muslims Pork For Non Muslims Fish Head In Bengal

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Culture Influence On Consumption – Life Style Non Alcoholic Beer In Saudi Arabia Parsi’s & Sikhs Do Not Smoke Concept Of Vegetarian Food Dressing Styles In Different Countries Bindi , Mangalsutra In India, Wedding Rings In West

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Culture Influence On Communication Process Low-context Culture - North America, North Europe High-context Culture - Japan , France, Spain , Italy, Asia, ME Asia, Africa

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Culture Influence on Verbal Communication 6000 dialects Same language in different markets American Vs. UK English Chinese, Japanese Vs. English 02.06.02 Vs. 06.02.02 Addresses

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Culture Non-verbal Communication Body language - Movements, appearance, dress, facial expression, gestures , postures, touch, silence , timing, distance etc. Waving hand - Normal in US, rude in Japan Eye contact - Rude in Japan, Avoidance considered rude in US Gesture - OK in USA, Money in Japan, Rudeness in Brazil, Vulgar in Latin America

Self Reference Criterion (SRC): 

Self Reference Criterion (SRC) An unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decision-making. SRC significantly influences ability of international managers to objectively evaluate environmental factors and make business decision . I NTERNATIONAL B USINESS

Approach to Eliminate SRC : 

Approach to Eliminate SRC Step 1:Define the business problem or goal in home-country traits, habits, or norms. Step 2:Define the business problem or goal in foreign country cultural traits, habits, or norms. Make no value judgments. Step 3:Isolate the SRC influence in the problem and examine it carefully to see how it complicates the problem. Step 4:Redefine the problem without the SRC influence and solve for the optimum business goal situation I NTERNATIONAL B USINESS

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Culture Language of Space Language of Time Language Of Agreement Language of Friendship Language of Negotiations Language of Religion Language of Superstition Language of Colour Language of Gift

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS External Influences Technology Technological Advance Impact on Manufacturing – Process, Inventories Marketing – Promotion - Distribution, Logistics - Pricing Suitability of environment for use of the product Impact of Technology on Infrastructure Impact of Technology on different sectors

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS External Influences Key Legal Issues HR Contracts, Visa, Recruitment, Work norms IPR Trademark, Copyright, Patents Infringement, Unfair competition Counterfeiting Gray Market

INTERNATIONAL BUSINESS: 

I NTERNATIONAL B USINESS Impact of Laws on Business National Laws Affect All Cross Border Activities National Laws Govern Contractual Relationships Health, Environment, Defence , Labour Laws Needs Special Attention International Treaties and Conventions Govern Cross Border Transactions

INTERNATIONAL BUSINESS: 

Key Legal Issues Visa Trade and Investment Regulations Financial Flow Regulations Taxation Reporting Requirements Ownership Regulations Dispute Resolutions I NTERNATIONAL B USINESS

Country Evaluation and Selection : 

Country Evaluation and Selection

Considerations: 

Considerations Company strategies for sequencing the penetration of countries Location Scanning Risk Analysis Research and Data Simplifying tools used Allocate emphasis Location of sale

Location: 

Location Companies lack resources to take advantage of all international opportunities Companies need to: Determine the order of country entry Set the rates of resource allocation among countries In choosing geographic sites, a company must decide: Where to sell Where to produce

Scanning : 

Scanning Scanning techniques aid managers in considering alternatives that might otherwise be overlooked They also help limit the final detailed feasibility studies to a manageable number of those that appear most promising

Information that is important in Scanning: 

Information that is important in Scanning Opportunities: Sales expansion - Economic and Demographic Variables Resource acquisition - Cost Considerations Factors to Consider in Analyzing Risk Political Monetary Competitive Natural disaster

Some Problems with Research Results and Data: 

Some Problems with Research Results and Data The amount, accuracy, and timeliness of published data vary substantially among countries Managers should be particularly aware of different definitions of terms, different collection methods, and different base years for reports, as well as misleading responses

Country Comparison Tools: 

Country Comparison Tools Companies frequently use several tools to compare opportunities and risk in various countries, such as grids that rate country projects according to a number of separate dimensions and matrices, such as one on which companies plot opportunity on one axis and risk on another When allocating resources among countries, companies need to consider how to treat reinvestments and divestments, the interdependence of operations in different countries, and whether they should follow diversification versus concentration strategies

Allocating Among Locations: 

Allocating Among Locations Companies may reduce the risk of liability of foreignness by moving first to countries more similar to their home countries Companies may contract with experienced companies to handle operations for them, limit the resources they commit to foreign operations, and delay entry to many countries until they are operating successfully in one or a few

Geographic Diversification versus Concentration: 

Geographic Diversification versus Concentration Strategies for ultimately reaching a high level of commitment in many countries are: Diversification—go to many fast and then build up slowly in each Concentration—go to one or a few and build up fast before going to others. A hybrid of the two

Reinvestment Versus Harvesting: 

Reinvestment Versus Harvesting A company may have to make new commitments to maintain competitiveness abroad Companies must decide how to get out of operations if: They no longer fit the overall strategy There are better alternative opportunities

Noncomparative Decision Making : 

Noncomparative Decision Making Companies often evaluate entry to a country without comparing that country with other countries This is because they may need to react quickly to proposals, to respond to competitive threats, and because multiple feasibility studies seldom are finished simultaneously

Enabling Trade Index 2010: 

Enabling Trade Index 2010 Rank 1 2 3 4 5 6 7 8 9 10 48 84 Country Singapore Hong Kong Denmark Sweden Switzerland New Zealand Norway Canada Luxembourg Netherlands China India Score 6.06 5.70 5.41 5.41 5.37 5.33 5.32 5.29 5.28 5.26 4.32 3.81

The Global Competitiveness Index 2010: 

The Global Competitiveness Index 2010 Country/Economy GCI 2010 Rank Score Switzerland 1 5.63 Sweden 2 5.56 Singapore 3 5.48 United States 4 5.43 Germany 5 5.39 Japan 6 5.37 Finland 7 5.37 Netherlands 8 5.33 Denmark 9 5.32 Canada 10 5.30 India 51 4.33