Premium
The Impact of the Global Financial Crisis on Country Attractiveness
Author(s) -
Aliouche E. Hachemi
Publication year - 2014
Publication title -
thunderbird international business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.553
H-Index - 37
eISSN - 1520-6874
pISSN - 1096-4762
DOI - 10.1002/tie.21671
Subject(s) - attractiveness , gross domestic product , per capita , financial crisis , population , business , product (mathematics) , economics , international economics , economic growth , macroeconomics , psychology , demography , geometry , mathematics , sociology , psychoanalysis
This study assesses the impacts of the recent global financial crisis on the relative attractiveness of 125 countries between 2007 2011. Using a strategic model of international expansion that quantifies incorporates countries’ market potential (population size, gross domestic product [ GDP ] growth, per capita GDP ), market risks (economic, political, legal, regulatory), distance (cultural, geographic), it confirms that some countries have become significantly less attractive (Ireland, Greece, Japan, etc.), while others have become much more attractive (Taiwan, Korea, etc.) as expansion markets for international companies. This study underscores the need for a strategic approach to international expansion decisions. The model can be used by business executives as a risk management tool in international expansion decision making. © 2014 Wiley Periodicals, Inc .