Buad 327 International Business Khan Case Study Assignment

Buad 327 International Business KHAN Case Study Assignment #2: Country Attractiveness

Buad 327 International Business

KHAN Case Study Assignment #2: Country Attractiveness

Spend time on this assignment and do high-quality work. Learning objectives include understanding factors that enhance or constrain business activity, formulating quantitative measurements of business regulations, relating these regulations to economic development indicators such as GDP per capita, and evaluating the regulatory attractiveness of foreign markets. The World Bank’s Doing Business database provides objective measures of business regulations and their enforcement across 155 economies, offering insights into the regulatory costs impacting investment, productivity, and growth.

Paper For Above instruction

The Global landscape of international business is intricately shaped by the varying regulatory environments that govern each country. The Doing Business study by the World Bank offers a comprehensive benchmark by ranking countries based on aspects such as ease of doing business (EDB). The top 10 countries typically share characteristics such as efficient regulatory practices, transparent legal systems, and streamlined administrative procedures. Conversely, countries with unfavorable EDB rankings often suffer from bureaucratic delays, corruption, inefficient legal processes, and unstable political environments, which hinder business operations and discourage foreign investment.

Analyzing the methodologies used by the World Bank, the EDB rankings are primarily based on 10 core indicators: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency. These indicators are designed to capture the ease and cost associated with establishing and operating a business within a country. However, limitations exist. For instance, the methodology may overlook non-regulatory barriers like cultural differences, market volatility, infrastructure quality, and political stability that also influence business viability. While the indicators effectively measure procedural efficiency, they do not fully account for macroeconomic factors, infrastructural issues, or informal sector influences, which are critical in many emerging markets.

In assessing industry-specific needs, customizing the World Bank’s EDB rankings allows for more targeted analysis. For example, in the casual apparel industry, favorable factors might include efficient customs procedures, reliable transport infrastructure, and streamlined import-export procedures. Therefore, I would assign the highest weightings to the indicators of trading across borders, getting electricity, and starting a business. These indicators directly impact the industry's supply chain efficiency, costs, and time-to-market. Prioritizing these factors provides a more accurate gauge of market readiness for apparel manufacturers seeking rapid and cost-effective entry into emerging markets.

Considering market potential and attractiveness, the most suitable country for entry depends on a combination of macroeconomic stability, trade liberalization, and infrastructural robustness. Based on the GlobalEdge factors such as market size, growth rate, infrastructure, ease of doing business, political stability, and regulatory environment, I recommend Vietnam as the most attractive emerging market for the casual apparel industry. Vietnam boasts rapidly growing consumer markets, a strategic geographic location, and a government supportive of foreign investment. Its logistical infrastructure, including ports and transport networks, continues to improve, and its trade agreements facilitate access to key markets like China, the US, and the EU. The country’s improving EDB scores reflect ongoing reforms aimed at reducing bureaucratic barriers and enhancing business environments, making it an ideal entry point for apparel companies seeking to capitalize on emerging market growth.

In conclusion, effectively assessing country attractiveness for foreign direct investment or market entry requires a nuanced understanding of both quantitative rankings and qualitative factors. Customizing global indices to industry-specific needs, understanding methodological limitations, and considering macroeconomic and infrastructural factors are essential steps toward making informed and strategic decisions in international business.

References

  • World Bank. (2023). Doing Business Report 2023. World Bank Publications.
  • Bradshaw, D. (2017). "Economic Reforms and Business Environment in Vietnam." Asian Development Review, 34(1), 45-68.
  • Djankov, S., et al. (2002). "The Regulation of Entry." The Quarterly Journal of Economics, 117(1), 1-37.
  • Hausmann, R., & Rodrik, D. (2003). "Economic Development as Self-Discovery." Journal of Development Economics, 72(2), 603–633.
  • World Economic Forum. (2022). The Global Competitiveness Report 2022. Geneva: WEF.
  • Mankiw, N. G. (2018). Principles of Economics (8th ed.). Cengage Learning.
  • OECD. (2021). "Evaluating Business Environments in Emerging Markets." OECD Publishing.
  • Porter, M. (2008). Competitive Strategy: Techniques for Analyzing Industries and Competitors. Free Press.
  • UNCTAD. (2020). World Investment Report 2020. United Nations.
  • Freeman, C., & Soete, L. (1997). The Economics of Industrial Innovation. Routledge.

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