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resources, level of risk, tariff and non tariff barriers, transportation cost, infrastructure, restriction on inflow or outflow of foreign investment etc
Opening of economy to foreign investment Removing obstacles to the entry of MNCs Bringing down import duties Promoting international trade
Globalization implies
Characteristics of globalization
Free trade of goods and services Free movement of capital Free movement of labour
Sufficient resources
Financial, managerial, human and technological
Comparative advantage
Regarding production cost, quality, brand image or marketing advantage
Improvement in transportation
Development of ports Container transportation
Development of infrastructure
Power supply, transportation, ports, warehouses, banking, roads, bridges, communication etc
For
evaluation
Market Related factors include economic conditions, economic policies, economic legislations, political factors, infrastructure, cultural factors, potential to serve as business hub
Preliminary screening
Various markets are eliminated using some major parameters Its objective is to reduce the number of markets for detailed evaluation and to reject the markets which are not out rightly suitable For preliminary screening secondary data like population, GDP, per capita income, growth rate etc is used. This data is published world bank Country with low per capita income is not suitable for luxurious products
Final selection
On the basis of the weighted score of each country a rank list is prepared, the country with highest score is first rank, the country with second highest score is given second rank and so on The top countries from the rank list are selected
This rank list can also be used for further expansion in near future
Economic legislations
Political factors
Political ideology Political stability
Infrastructure
Power, transportation, communication, roads Bridges, railway network, ports, banking, insurance etc
Cultural factors
Food habits, dressing style, working style etc