- As more countries rethink their priorities multinationals must proceed with caution.
- India > revoked the patent of Pfizer , China > slashing drug price to reduce health care health ( Price ceiling )
- Guard globalisation : Government's of developing nations have become wary of opening more industries to multinational companies and are zealously protecting local interests.
-> Very slow-moving, selective, and with a heavy dash of nationalism and regionalism.
- Several factors on about this
1. Many governments find it risky to continue opening industries to foreign competition.
2. They are no longer attract large amounts of foreign investment.
> some countries have built large foreign exchange reserves and boosted exports.
3. Governments are defining national security more broadly.
4. China; Establish rather than follows.
5. Policy makers in developing countries are intervening to create uneven playing fields that give local players and advantage.
- Any sector could prove to be strategic, depending on a government's attitudes and policies.
- The Rise of State-Capitalism in Emerging Markets
- State-Capitalism : The leader of these countries know the importance of Markets. They don't want to lose their power.
> The goal is political : to control economic development and thereby maximise the incumbent regime's chances of survival.
> Free market system : Maximise the profits.
- State capitalist economies quickly become less innovative and less transparent.
- A controversy swells over the US government's spying on foreign movements and citizens...
- Mapping the Global landscape
1. Sticking close to home may ensure lower political risk. but it could also mean ceding market share to global competitors.
2. Pursuing a strategy without considering geopolitical dynamics could boost growth in the short term but heighten the risk that politics could fatally undermine business operations in the future.
- Divergent answers to the two questions indicate that the company must make some nuanced decisions; Managers are likely to be exposed to political constraints and geopolitical manoeuvring from host governments or at home.
- Strategies to Manage Guarded Globalisation
1. Stay home.
Keeping out of foreign countries is obvious for companies in the defense industry.
2. Become more 'strategic' at home.
To keep out foreign competition or boost profits by striking a closer relationship with the government.
3. Use the state to fight other states.
Companies in industries that are strategically important to host governments face a different set of challenges.
4. Use the state to fight other states.
Companies in industries that are strategically important to host governments face a different set of challenges.
5. Strike alliances.
6. Add value to state.
A single-product company must often find a new way to add value in the host country.
7. Become too diversified to fail.
Developing countries offer so many opportunities that a multi-business strategy can be compelling for multinationals.
8. Build it so that you can stay
9. Capitalise on state capitalism.
Another useful strategy to withstand new levels of scrutiny by host states is to commit to hiring local workers and using local materials.
10. Anticipating Risks
Multinational companies will continue to find opportunities for expansion and will face new obstacles to the sustainability of their investments, but Moving targets that will require constant strategic adaptation.
- India > revoked the patent of Pfizer , China > slashing drug price to reduce health care health ( Price ceiling )
- Guard globalisation : Government's of developing nations have become wary of opening more industries to multinational companies and are zealously protecting local interests.
-> Very slow-moving, selective, and with a heavy dash of nationalism and regionalism.
- Several factors on about this
1. Many governments find it risky to continue opening industries to foreign competition.
2. They are no longer attract large amounts of foreign investment.
> some countries have built large foreign exchange reserves and boosted exports.
3. Governments are defining national security more broadly.
4. China; Establish rather than follows.
5. Policy makers in developing countries are intervening to create uneven playing fields that give local players and advantage.
- Any sector could prove to be strategic, depending on a government's attitudes and policies.
- The Rise of State-Capitalism in Emerging Markets
- State-Capitalism : The leader of these countries know the importance of Markets. They don't want to lose their power.
> The goal is political : to control economic development and thereby maximise the incumbent regime's chances of survival.
> Free market system : Maximise the profits.
- State capitalist economies quickly become less innovative and less transparent.
- A controversy swells over the US government's spying on foreign movements and citizens...
- Mapping the Global landscape
1. Sticking close to home may ensure lower political risk. but it could also mean ceding market share to global competitors.
2. Pursuing a strategy without considering geopolitical dynamics could boost growth in the short term but heighten the risk that politics could fatally undermine business operations in the future.
- Divergent answers to the two questions indicate that the company must make some nuanced decisions; Managers are likely to be exposed to political constraints and geopolitical manoeuvring from host governments or at home.
- Strategies to Manage Guarded Globalisation
1. Stay home.
Keeping out of foreign countries is obvious for companies in the defense industry.
2. Become more 'strategic' at home.
To keep out foreign competition or boost profits by striking a closer relationship with the government.
3. Use the state to fight other states.
Companies in industries that are strategically important to host governments face a different set of challenges.
4. Use the state to fight other states.
Companies in industries that are strategically important to host governments face a different set of challenges.
5. Strike alliances.
6. Add value to state.
A single-product company must often find a new way to add value in the host country.
7. Become too diversified to fail.
Developing countries offer so many opportunities that a multi-business strategy can be compelling for multinationals.
8. Build it so that you can stay
9. Capitalise on state capitalism.
Another useful strategy to withstand new levels of scrutiny by host states is to commit to hiring local workers and using local materials.
10. Anticipating Risks
Multinational companies will continue to find opportunities for expansion and will face new obstacles to the sustainability of their investments, but Moving targets that will require constant strategic adaptation.
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