Doing Business in India

On its independence in 1947, India was among the two most industrialized nations in Asia. Since then it adopted a “mixed economy” approach that hindered its national growth and the optimum utilization of its immense resources (both natural and human). To re‐establish itself as an economic force in the region, India liberalized its economy in early 1990s. The adoption of the “free market economy” model has created great opportunities for foreign businesses. This article provides useful information on the complex business environment, aimed to help foreign businessmen and investors to develop a good understanding on key background knowledge for being successful in India. It reviews Indian historical development, political structure and climate, international relations, and economy and foreign trade. India's infrastructure, legal framework, socio‐cultural set‐up, competitive environment, as well as market structure and potential are also analyzed. © 2001 John Wiley & Sons, Inc.     

Doing business in…Sri Lanka

Having a well‐developed human resource base and a relatively well‐developed capital market infrastructure, Sri Lanka offers a liberal and dynamic investment environment. Over the years, macrostability has been achieved and considerable reforms have been implemented, contributing to a healthy economic growth. This article provides useful information on the business environment and is intended to help foreign businessmen and investors to develop a good grasp of essential background knowledge for being successful in Sri Lanka. It reviews the Sri Lankan political structure, climate, and economy. Sri Lanka's infrastructure, legal framework, and sociocultural set‐up, as well as market structure and potential, are also analyzed. © 2005 Wiley Periodicals, Inc.     

From reform to neo-regulation: An assessment of recent political/economic developments in Nigeria

The Nigerian political economy was placed on the path of economic and political liberalization from the mid-1980s. About a decade later, both processes had experienced great reversals. This article examines the social forces that are arrayed against the reform processes. It focuses on recent political and economic developments in Nigeria with a view to understanding the nature of the emerging business environment for the purpose of potential investors, international managers, aid agencies, and donor countries in Africa's most populous country. While noting the inevitability of a modicum of regulation in the nation's economic adjustment program, this study contends that the regulatory measures contained in the 1994 budget prepared by the new military junta in Nigeria is stifling investment, and can neither lay the basis for the recovery of, nor engender sustainable development in the nation's economy. A more appropriate management of the exchange and interest rate regimes, and the democratization of the political processes as the minimum prerequisite for stability, growth, and development in the Nigerian political economy is recommended. © 1995 John Wiley & Sons, Inc.     

Foreign Direct Investment in Sub-Saharan Africa: Motivating Factors and Policy Issues

Sub-Saharan Africa's (SSA) foreign direct investment (FDI) share has persistently averaged 1% of global flows. The location decision and perceptions of investors are therefore instructive for policy making. This article factor analyses a survey of perceptions, operations, and motivations of 758 foreign investors in 10 SSA countries. We find that the provision of transaction cost–reducing information on industries and markets and utility services to investors before and after a firm's FDI decision are significant factors. FDI location decision in SSA is influenced strongly by political economy considerations. Labor and production input variables are not influential.     

Doing Business in Ukraine

Although it is the second largest country in Europe, Ukraine is still at an early stage in its transition to a market economy. Given its strong long‐term potential, it is a key country to monitor on the changing global landscape. This article provides a comprehensive review of Ukraine's historical development, political structure, economy, investment and foreign trade environment. It aims at being a useful source of information for foreign businessmen and investors interested in doing business in Ukraine. © 2000 John Wiley & Sons, Inc.     

Doing business in Switzerland

Situated at the crossroads of Europe, Switzerland is an ideal example of a successful multicultural and multilingual society living in a harmonized way. This article provides a comprehensive review of Switzerland's historical development, political structure, economy, investment, and foreign trade environment. It aims at being a useful source of information for foreign businessmen and investors interested in doing business in Switzerland, one of the most advantageous business locations in Europe. © 2003 Wiley Periodicals, Inc.     

美债危机的成因、影响及我国未来的经济政策走势分析

美债危机的成因主要在于三个方面,即美债累积数额巨大;世界经济复苏放缓凸显了美债违约的严重性;美国两党未能及时达成共识,没有给市场充分消化的时间,引发了投资者恐慌情绪的蔓延等。美债危机短期内对我国经济的不利影响有限,但长期看将进一步推动我国经济结构调整和外汇投资多元化进程。我国经济增长不会出现大幅下滑,经济结构调整步伐将进一步加快;人民币升值趋势将加快;输入性通胀压力依然严峻;政策进入观望期,紧缩政策可能出现微调;外汇储备风险增加,多元化投资进程将加快。     

Making Trade Policy in a New Democracy after a Deep Crisis: Indonesia

This paper examines the recent political economy of trade policy in Indonesia against the backdrop of two major events: the deep economic crisis of 1997–98, and the transition from three decades of rapid growth under an authoritarian regime to a weaker but democratic state. We investigate both international and domestic trade policy. The international trade policy regime has remained largely open, perhaps surprisingly in view of the unpopularity of liberal economic policies in the wake of the crisis and the forces advocating more protectionist policies. However, this openness is precarious, and lacks both institutional and community opinion support. In contrast, while remaining largely open at the international border, domestic barriers to trade have increased. This conjunction of economic crisis and weak, democratic states is a common phenomenon in the developing world, and the lessons for trade policy from the Indonesian experience over this decade are therefore relevant to many other countries.     

Turkey

The Turkish Republic was founded in 1923, following the fall of the Ottoman Empire. Turkey is strategically positioned at the crossroads of Europe, the Black Sea region, and the Turkic‐speaking republics of Central Asia. It is also situated on the Mediterranean coast at close proximity to the Middle East, the Gulf States, and North Africa. It thus offers an excellent base for economic activities throughout the region. The country was a gateway from the ancient Silk Road to new markets and today is becoming a powerful focal point as a cultural and political intermediary as well as a regional trade center of growing importance. Turkey is the 17th largest economy in the world (Economist, 2003; World Bank, 2001). Turkish culture, history, and people have always fascinated scholars. In recent years, the country also has captured the attention of Western companies and investors. Once highly insular, the Turkish economy has been transformed over the past two decades into a vibrant liberal market within a rapidly modernizing society. It is regarded by the U.S. Department of Commerce as one of the top emerging markets. This article will explore the foundations of the Turkish economy, business system, and business culture from the perspective of foreign companies. Following a brief overview of the economy, the country's market potential is discussed. Next, entry strategies—including potential partnerships with indigenous firms—are recommended. Finally, we offer insights into the business culture, and provide tips for working effectively with Turkish business people. © 2003 Wiley Periodicals, Inc.     

The Brazilian Economy in 1994–1999: From the Real Plan to Inflation Targets

This paper investigates the three main events that shook the Brazilian economy in 1994‐‐1999, a period that represented a turning point in the country's economic history. These events were the implementation of the Real Plan in 1994, the devaluation crisis in 1999, and the subsequent adoption of inflation targets. The principal contributions of this period were the drastic reduction of high inflation rates – the biggest problem in Brazil since the 1970s – and the reorientation towards economic growth, which were also supported by a privatisation programme, the openness of the economy to foreign capital, a trade liberalisation process, and the ongoing fiscal adjustments. Nevertheless, the period also left its scars, such as high budget and current account deficits, accompanied by a policy of elevated interest rates and, until 1999, a highly appreciated exchange rate. The paper concludes with a cautiously optimistic evaluation of the country's economic future based on the accomplishments of the 1990s and the possibility of a long‐term commitment to low inflation targets.     

How does FX liquidity affect the relationship between foreign ownership and stock liquidity?

This study investigates the roles foreign investors play in a representative emerging market, focusing on the relationship between foreign ownership and stock market liquidity as well as this relationship's response to foreign exchange (FX) liquidity. Our analyses yield three main results. First, the bid–ask spread and price impact of stock trades decrease along with foreign ownership, supporting the view that foreign investors tend to improve stock liquidity. Second, foreign ownership decreases along with a decline in FX liquidity, suggesting that foreign investors care about FX liquidity when determining their stock holdings. Third, stock liquidity increases continuously along with foreign ownership as FX liquidity decreases. Overall, this study's evidence indicates that foreign investors, as liquidity providers, can play a positive role in an emerging economy even when FX liquidity declines.     

The Selection of Distribution Channels in China

This contribution first traces the development of the distribution system in China from state monopoly to one which permits the limited participation of foreign ventures, and examines the problems faced by foreign investors in managing the distribution channels under such a transitional economy. Due to China's abundance of linguistic, cultural and economic differences, combined with growing territorialism at the provincial level, different problems may be encountered in different citieslregions, and therefore foreign investors need to modify their distribution strategies accordingly. Detailed case studies are provided as illustrations.     

The evolving investment climate in Vietnam and subsequent challenges to foreign investors

Executive Summary Vietnam's evolving reform process is gaining momentum. Vietnam's Communist Party, however, continues to maintain strong control over economic affairs. Foreign companies with commercial expectations typically are forced into partnership with State instruments responsible for implementation of economic policy. Conflict is inevitable and many difficulties between the partners can be traced to fundamental differences in motivation between foreign investors and Vietnamese authorities. The authors analyze official policy statements and historical trends, examine some Joint Ventures to provide insights into the nature and source of these conflicts, and conclude with a discussion and implications for managers and foreign investors. © 2000 John Wiley & Sons, Inc.     

Subnational managerial transformation and the post‐WTO‐accession business environment in China: Shanghai perspectives

The market‐oriented perspectives held by managers of China's municipal government agencies and urban enterprises constitute critical variables in the business environment encountered by foreign investors. A study of 426 predominantly subnational managers in Shanghai found most study participants generally positively inclined toward implementing accession‐related reforms and toward marketoriented developments. The study also revealed a surging interest in careers with foreign‐affiliated entities and widespread preference for incentives that give foreign‐invested firms a competitive hiring and retention advantage over domestic, especially state, establishments. The overall results suggest the transformation of subnational managerial orientations in a direction that is conducive for foreign participation in Shanghai's postaccession economy. © 2005 Wiley Periodicals, Inc.     

Note: Dealing with Iraq’s foreign indebtedness

Iraq now faces a growing economic crisis, which is impoverishing the country and threatening its basic social fabric. The crisis is partly the result of decades of mismanagement on the part of the Iraqi government. It is also the result of massive overspending and foreign borrowing during the Iran–Iraq War and the Gulf War. This article investigates Iraq’s debt crisis and attempts to devise a pragmatic debt‐management strategy, which could pos‐sibly lead to solving this acute problem. The four‐pillar strategy introduced here, if well implemented, would not only obliterate the debt, but could more importantly set the scene for Iraq’s return to its place in the international community with a renewed political and economic stability. © 2000 John Wiley & Sons, Inc.     

Doing business in China I. The business environment in China—getting to know the next century’s superpower

This article is the first of two parts of a comprehensive analysis regarding the key issues involved in doing business in China. By examining the complex business environment, it aims at helping foreign businessmen and investors to master the key background knowledge for being successful in the Central Kingdom ("know‐what"). A key theme is China’s immense diversity, variety, and complexity, as well as enormous competitive intensity, which are unrivaled by any other market in the world. Foreign businessmen often underestimate these aspects. The article reviews China’s historical development, political structure and climate, international relations, economy, and foreign trade. China’s infrastructure and energy structure, legal framework, competitive environment, as well as market structure and potential also are analyzed. © 2000 John Wiley & Sons, Inc.     

Latvia

Situated on a trading crossroads between Western Europe and Russia, Latvia has emerged as one of the most successful countries in Central Europe. This article provides a comprehensive review of Latvia's historical development, political structure, economy, investment, and foreign‐trade environment. It aims to be a useful source of information for foreign businessmen and investors interested in doing business in Latvia. In the fall of 1991, when the Baltic States separated from the Soviet system, no one predicted that these countries would make the transition to a market‐based economy as quickly and as effectively as they have. However, 11 years later, with notable growth and rising standards of living, such thinking is no longer considered overly optimistic. “It is the biggest, most complicated, and most promising piece of the new Europe,” wrote The Economist (1998) in reference to the Baltic region. Wherever there is new growth, there are many business opportunities to be found. Latvia's position in the center of this region is one indication of the business potential for those with the capacity to do business there. © 2003 Wiley Periodicals, Inc.     

New international business perspectives on Pakistan

What image comes to mind when one thinks of Pakistan? Prior to the attacks of September 11, 2001, and the subsequent invasion of Afghanistan, many businesspeople had little information about this ancient land. Recently, Pakistan has come to the world's attention as a powerful ally in the U.S.‐led war against terrorism. Situated at the crossroads of the Middle East, Southeast Asia, China, and member nations of the former Soviet Union, Pakistan has long been a leading player in regional political and economic activity. This article presents some new perspectives on Pakistan as a market worthy of a closer look. We survey Pakistan's history and geography, as well as its sociocultural, political‐legal, economic, and competitive environments with a view to identifying new opportunities for foreign investors and global marketers. Current business trends and marketing opportunities are discussed, concluding with an outlook for future growth and development. Valuable insights are offered to businesspeople interested in doing business in Pakistan, a little‐studied but vitally important newly industrializing country (NIC) and big emerging market (BEM). © 2004 Wiley Periodicals, Inc.     

Indonesia – Trade Policy Review 2007

This paper examines the 2007 WTO review of Indonesian trade policy. Indonesia undertook a major policy liberalisation in the late 1960s. Serious protectionist pressures emerged in the 1970s but for most of this period, and especially since the mid‐1980s, the economy has remained broadly open. We summarise the WTO report, update some of its analysis, highlight its key findings, and point to some trade policy issues that in our opinion warranted greater attention. The main theme of the paper is that Indonesia is a largely open economy, but that this openness on occasion remains precarious. There are both political economy, rent‐seeking forces opposed to the current openness and, perhaps more importantly, much of the country's influential public opinion is sceptical of the merits of an open economy and deeper global commercial integration. Nor is there a deeply institutionalised support for openness in the country's bureaucracy and polity. Seen from this perspective, a key question to answer is why the country has remained open, particularly since the deep economic and political crises of 1997–98.     

Factors Favoring Greece’s Inward Foreign Direct Investment in the Aftermath of the Global Financial Crisis: An Exploratory Survey

Greece has suffered the worst from the late 2000s global financial crisis. Despite the completion of the economic adjustment program the rate of recovery in Greece is still weak. The liquidity constraints in the Greek economy imply that the investment shock, which will accelerate its recovery rate, will be an outcome of investment inflows by privatizations and/or other opportunities arising to foreign investors (inward FDI) due to the devaluation of the assets in Greece caused by the crisis. However, the level of attracted by the Greek economy has always been well below the European Union average. This paper investigates the factors favoring inward FDI in Greece after the crisis. A survey is made by the use of a questionnaire for the collection of primary data on the activity of multinationals in Greece and non-parametric methods are used for investigating the attractiveness of the Greek market and the decision to invest.