Country Analysis: International Business Strategy
A Framework to Identify and Evaluate the National Business Environment
Abhinaw Saurabh Akhil Kaushal P Akshay Awasthi
Need to understand the external environment that influences business Components of country analysis framework:
Strategy – Nation’s implicit and explicit goals & policies Context – Nation’s resources, “Players” and “Rules” Performance – Economic, Political, Social
Strategy: Country’s path to achieve its vision Path is defined by:
I. II. III. IV. V. Goals Priorities of Goals Policies Inter-relation of policies Effect and Influence on features of Context
Economic – Improved public welfare, GNP/capita, low unemployment, stable prices, rising consumption Political – National power, Sovereignty, Stability Social – Reduction of income inequality, Improvement in education/health/housing
Policies are targeted towards national goals Policies mostly considered for analysis: Fiscal, Monetary, Trade, Exchange-Rate, Sectoral Policies (Education, Telecom, Agri) Govt. policies are more broad and macro Policy - Centralized/Decentralized decision making Policy Orientation – External / Inward
Contextual components define the national system to allocate country's resources. What are resources ?
a) Human b) Natural c) Physical d) Technological
Game : The way resources are affected by other contextual components. The Players in the Game : Unitary entities with distinct interest and incentives. They transform the system. a) Firms b) Govt Actors c) Non-Govt Organizations
Rules of the Game -reduce uncertainty by establishing a stable structure to human interaction
Impacts economic system Defines social fabric Implies about Business environment
a) Formal
- Political : polity , treaties , contracts , fundamental rights - Economic : property rights , tax system , monetary policies
- Change involves legislative and judicial levels
b) Informal
Abhinaw Saurabh Akhil Kaushal P Akshay Awasthi
Need to understand the external environment that influences business Components of country analysis framework:
Strategy – Nation’s implicit and explicit goals & policies Context – Nation’s resources, “Players” and “Rules” Performance – Economic, Political, Social
Strategy: Country’s path to achieve its vision Path is defined by:
I. II. III. IV. V. Goals Priorities of Goals Policies Inter-relation of policies Effect and Influence on features of Context
Economic – Improved public welfare, GNP/capita, low unemployment, stable prices, rising consumption Political – National power, Sovereignty, Stability Social – Reduction of income inequality, Improvement in education/health/housing
Policies are targeted towards national goals Policies mostly considered for analysis: Fiscal, Monetary, Trade, Exchange-Rate, Sectoral Policies (Education, Telecom, Agri) Govt. policies are more broad and macro Policy - Centralized/Decentralized decision making Policy Orientation – External / Inward
Contextual components define the national system to allocate country's resources. What are resources ?
a) Human b) Natural c) Physical d) Technological
Game : The way resources are affected by other contextual components. The Players in the Game : Unitary entities with distinct interest and incentives. They transform the system. a) Firms b) Govt Actors c) Non-Govt Organizations
Rules of the Game -reduce uncertainty by establishing a stable structure to human interaction
Impacts economic system Defines social fabric Implies about Business environment
a) Formal
- Political : polity , treaties , contracts , fundamental rights - Economic : property rights , tax system , monetary policies
- Change involves legislative and judicial levels
b) Informal