The Global Emerging Market: Strategic Management and Economics

by Kvint; Vladimir

• ISBN13: 9780415988407
• ISBN10: 0415988403
• Edition: 1st
• Format: Nonspecific Binding
• Copyright: 2009-02-05
• Publisher: Routledge

Summary

Despite the growing importance of the Global Emerging Market (GEM) for the world's business, economies, and politics, it has received a relatively scant amount of academic attention in business and economics courses. This textbook is the first to focus on the GEM and its strategic and economic characteristics.The Global Emerging Market: Strategic Management and Economics describes the fundamental economic base and trends of the Global Marketplace as well as business and management development for the conditions of Emerging Market countries. Focusing on the formation of a strategic mindset and the decision making process, it explains how to analyze the basic economic factors and the Global Order and classify countries related to this new market of tremendous opportunities. Furthermore, the book includes recommendations on how to develop entry strategies for the GEM, work in it and create efficient management systems.Features include:Extensive tables, charts, and graphs illustrating the strategic considerations of the Global Marketplace and the GEM.End-of-chapter study questionsPractical examples based on the author's involvement in the development of the GEM, from both sides of the international transactions.This is the ideal guide for current business leaders and students on how to make strategic, symmetric, and asymmetric decisions related to the Global Emerging Market.Dr. Vladimir Kvint is Professor of Management Systems at LaSalle University (PA) and Head of the Department of Financial Strategy of the Moscow State University's School of Economics. He also has extensive experience working in the US, Europe and Emerging Market countries, as an executive and advisor for businesses and government leaders.

Author Biography

Dr. Vladimir Kvint is Professor of Management Systems at LaSalle University (PA), Chair of the Department of Financial Strategy of the Moscow State University's Moscow School of Economics, and member of the Bretton Woods Committee. He also has extensive experience working in the US, Europe, and EMCs, as an executive and advisor for businesses and government leaders.

Table of Contents

Lists of Illustrations	p. xiv
About the Author	p. xx
Acknowledgments	p. xxii
Keynote Definitions	p. xxv
List of Abbreviations	p. xxvii
Introduction: A Path to Strategy	p. xxix
A Strategic Evaluation of the Global Marketplace	p. 1
Keynote Definition	p. 1
Genesis of the Global Marketplace	p. 1
The World Economy and the Global Marketplace	p. 5
Defining the Global Marketplace	p. 6
Economic Integration in the Global Marketplace	p. 8
Strategic Evaluation of the World Economy and the Global Marketplace	p. 10
Strategic Evaluations of the Basic Economic Factors of the World Economy	p. 18
Study Questions	p. 73
The Global Emerging Market	p. 75
Keynote Definitions	p. 75
Preconditions for the Birth of the Global Emerging Market	p. 76
Historical Precedents of the Creation of Emerging Economies	p. 76
Economic and Philosophical Inevitability of the Failure of Dictatorships and Command Economies	p. 76
The Global Emerging Market	p. 78
Major Characteristics of an Emerging-market Country	p. 82
Classification of Emerging-market Countries	p. 84
The Genesis of the Global Emerging Market	p. 88
Growing Input of the Global Emerging Market in the World Economy	p. 88
The Business Perspective	p. 89
Emerging-market Countries' Regional Integration into the Global Marketplace	p. 93
The Current Role of the Global Emerging Market in the World	p. 100
Technological Achievements in the Global Emerging Market	p. 104
National Agendas and Benefits to Society of Emerging-market Countries	p. 104
Role of the Middle Class in Economic Maturation of Emerging-market Countries	p. 108
The Future of the Global Emerging Market in the Global Marketplace	p. 109
Study Questions	p. 110
Ten Modern Global Political, Economic, and Technological Trends	p. 111
Globalization and Democratization as Objective Trends	p. 111
System of the Ten Global Trends	p. 113
The Roots of the Global Trend of Political Disintegration	p. 114
Regionalization as a Global Trend	p. 118
The Trend of Regional Economic Integration	p. 121
The Trend of Privatization	p. 124
Mass Privatization	p. 127
Cash Privatization	p. 127
The Role of Initial Public Offerings in Privatization	p. 130
The Trend of Internationalization	p. 131
Strategic Reasons to Do Business Internationally	p. 131
Deficit of Investment as a Consequence of Internationalization	p. 139
The Economic Impact of the Global Trend of Terrorism and Extremism	p. 139
The Roots of Terrorism and Extremism	p. 139
Defining Terrorism	p. 142
Responses to Terrorism and Extremism	p. 143
The Impact of Terrorism on the Global Marketplace	p. 144
Terrorism and the Global Emerging Market	p. 148
Technological Trends	p. 149
Study Questions	p. 157
Strategic Country Classification of the Global Marketplace	p. 160
The Strategic Necessity for Country Classification Systems	p. 160
The Flawed Country Classifications of Major Multilateral Institutions	p. 161
The World Bank Group Approach	p. 162
The International Monetary Fund Approach	p. 165
The World Trade Organization Approach	p. 171
The United Nations Approach	p. 171
Observations of Multilateral Institutions' Country Classification Systems	p. 175
Alternatives to the Classifications Systems of Multilateral Institutions	p. 175
The Strategic Approach to Country Classification	p. 177
Indexation of Countries by Industrial Structure	p. 178
Indexation of National Economies' Technological Maturity	p. 183
Evaluation of National Environmental Protection	p. 184
A Synthesized Rating of National Technological, Economic, and Social Advancement	p. 185
The Strategic Comprehensive Country Classification System	p. 188
Observations of the Superpower Category	p. 193
Observations of the Technologically Advanced Economies Category	p. 194
Observations of the Wealthy Nations Category	p. 195
Observations of the Emerging-market Countries Category	p. 196
Observations of the Economies in Bloom Category	p. 196
Observations of the Emerging-market Democracies Category	p. 197
Observations of the Oligarchic Emerging Markets Category	p. 198
Observations of the Emerging-market Dictorships Category	p. 200
Observations of the Pre-emerging Markets Category	p. 201
Observations of the Developing Countries Category	p. 202
Observations of the Underdeveloped Countries Category	p. 203
Evaluation of International Business Infrastructure	p. 205
Classification Glossary	p. 209
Study Questions	p. 209
The Emerging Global Business Order	p. 211
Keynote Definitions	p. 211
Genesis of the Global Order	p. 211
Bretton Woods Institutions of the Global Order	p. 215
Dynamics of the Global Order	p. 218
The Global Business Order in the Dynamics of the Global Order	p. 219
The Evolution of the Global Order	p. 224
The Revolution of the Global Order	p. 225
Objective and Subjective Factors Influencing the Global Business Order	p. 229
The Factor of Global Trends	p. 230
The Global Optimum	p. 231
Triggering Events of the Formation of the Emerging Global Business Order	p. 235
The Changing Roles of Multilateral Institutions in the Global Marketplace	p. 239
New Authorities of the Global Business Order	p. 244
G8 and its Likely Enlargement	p. 245
The Bretton Woods Committee	p. 246
World Economic Forum	p. 247
The Council on Foreign Relations	p. 249
The Trilateral Commission	p. 250
The Institutionalization of the Global Business Order	p. 251
Major Characteristics of the Emerging Global Business Order	p. 252
Study Questions	p. 256
Global Economic Strategy	p. 258
Keynote Definitions	p. 258
The Strategic Mindset	p. 258
Two Approaches of Strategic Thinking	p. 260
Stages of the Strategic Thought Process	p. 262
Characteristics of the Strategic Mindset	p. 262
The Three Axes of Strategic Thought	p. 264
The Professional Strategist	p. 265
The Strategist's 15 Rules	p. 266
Strategists Can Never Rely on Common Sense Alone	p. 267
The Majority is Very Often Strategically Wrong	p. 267
Strategically, the Present is Already the Past	p. 268
The Strategist Must Learn from History	p. 269
Nothing Lasts Forever	p. 270
Inertia is the Strategist's Greatest Adversary	p. 271
Strategists Should Not Fall into Predictable Patterns	p. 272
A Successful Strategy Cannot be Dishonest	p. 272
Strategists Must Make Systems Out of Chaos	p. 273
An Asymmetric Strategic Response Is More Efficient than a Symmetric One	p. 274
The Strategist Must Always be an Optimist	p. 275
Always Overestimate the Competitor	p. 276
Innovation Can Provide Huge Strategic Advantages	p. 276
The Strategist Should Optimize Limited Resources, Using Time as the Determining Factor	p. 277
Strategists Must Figure Out What their Clients Need, not What their Clients Want	p. 277
System of Strategy	p. 279
Hierarchy of Strategy	p. 279
Correlation between Strategy, Tactic, and Policy	p. 279
Development of Strategy	p. 280
Stages of Strategy Development	p. 280
Selection of Strategic Scenario, Tactic, and Policy	p. 290
Strategic Factors and Limitations for Businesses Entering Emerging Markets	p. 290
Strategy of Subordinate Units	p. 295
Strategy Implementation	p. 296
Time-sensitive Resource Analysis	p. 296
Corporate Entry Strategy	p. 301
Tactic	p. 303
Cultural and Religious Environment of Strategy Development and Implementation	p. 304
Culture as a Strategic Risk Factor	p. 306
Exit Strategy	p. 307
Study Questions	p. 309
Strategic Management Systems	p. 311
Concept of a Strategic Management System	p. 311
Major Elements of a Strategic Management System	p. 312
Strategic Leadership	p. 312
Organizational Structure	p. 316
Executives, Managers, and Staff	p. 318
Strategic Decision-making Process	p. 321
Managerial Tools, Aids, and Strategic Information Technology	p. 325
Functions of Strategic Management Systems	p. 327
Strategic Planning and the Strategic Plan	p. 327
Strategic Motivation	p. 328
Strategic Monitoring and Control: Evaluating Strategy and Strategists	p. 330
International Joint Ventures as a Strategic Organizational Vehicle of Globalization	p. 332
Economic Genesis of the International Joint Venture	p. 333
The Letter of Intent or Memorandum of Understanding for International Joint Venture Establishment	p. 336
International Joint Ventures' Market-entry Strategy	p. 338
Key Factors to Consider When Making an International Joint Venture	p. 338
Management Systems of International Joint Ventures	p. 340
Study Questions	p. 344
Investment Strategy for the Global Emerging Market	p. 346
Keynote Definitions	p. 346
Reasons for Cross-Border Investment	p. 346
Economic Nature of Foreign Direct Investment	p. 346
Rationale of Investment in the Global Emerging Market	p. 349
Gauging Foreign Investment Risk in Emerging Markets	p. 354
Systematic Risk in the Global Emerging Market	p. 355
Unsystematic Risk of Investment	p. 380
International Business Infrastructure in Emerging-market Countries	p. 383
Technological Risk of Foreign Direct Investment	p. 398
Foreign Direct Investment from the Global Emerging Market to Developed Countries	p. 404
Study Questions	p. 410
Notes	p. 412
Bibliography for Reading on Strategy and Economics of the Global Emerging Market	p. 440
Specialized Periodicals on the Global Emerging Market and Business Strategy	p. 443
Index	p. 445
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