Influence of Governmental Policies on Global Market Entrance Strategy: A Multiple Case Study
The purpose of the multiple case study is to explore the influence which Governmental financial, regulatory and monetary policies have on multiple national companies who plan to enter a new market.
A number of economic factors influence the determination by a company whether or not a market is attractive for entrance. Application of governmental fiscal, monetary and regulatory policies are demonstrated to be one of the primary factors influencing perception of market attractiveness for entrance. Incorporating a foundation of systems and complexity theory in conjunction with the above governmental fiscal, monetary and regulatory policies, three case studies of different countries were explored for the purpose of understanding why the application of the governmental policies influenced the perception of attractiveness of each for new market entrance investment. Understanding the influence of governmental policies on perception of a multinational company about level of market attractiveness for investment will assist corporate leadership in making future decisions. Themes emerging included that risk for investment increases as debt/government spending rises near 100%; that fiscal spending deficits may result in an increased hidden tax penalty from inflation in the country; that excess governmental regulation can inhibit economic growth and that having a territorial aggressive large neighbor nearby may inhibit perceived attractiveness.
Keywords: GNP (gross national product), jobs, monetary policy, fiscal policy, market investment entry risks
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