国际直接投资学：Part II ch03_B Economic Integration.ppt

单击此处编辑母版标题样式,单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,Chapter 3,Emerging Markets and MNCs,1,Section 1:,Doing business with transition,economies,Section 2:Adjusting,to global change;,Section 3:Role,of multinational companies,;,Section 4:Car Financing in China,Doing Business with Transition Economies,The major market economies emerging out of formerly centrally planned economies are:,Russia and the now independent states of the former Soviet Union.,Eastern and central European nations(Albania,Bulgaria,the Czech and Slovak Republics,Hungary,Poland,and Romania).,3,The Trade History of Socialist Countries,After 1918,Socialist states had a monopoly on foreign trade,which was concentrated in the hands of organizations specifically authorized by the state.,This trade structure isolated the firms and consumers from the West and unlinked demand from supply.,The result was misallocated resources,ineffective channels of distribution,and inefficiency due to lack of competition.,Managers of plants were more concerned with producing the quantities stipulated by a rigid,central plan,than with producing products and quality desired.,4,Perestroika and Glasnost,In the mid 1980s,the Soviet Union developed two new political and economic programs:perestroika and glasnost,Perestroika,was used to fundamentally reform the Soviet Union economy by improving the overall technological and industrial base as well as the quality of life for Soviet citizens through increased availability of food,housing,and consumer goods.,Glasnost,was used to complement those efforts by encouraging the free exchange of ideas and discussion of problems,pluralistic participation in decision-making,and increased availability of information.,5,Changes after 1989,With an unexpected suddenness,the Iron Curtain disappeared,and within three years,the Communist empire ceased to exist,Eastern Europe and the former Soviet Union shifted their political and economic orientations toward a market economy.,Trade flows were redirected.,Austerity programs were introduced,which led to a decrease in the standard of living.,All of these changes ended the Cold War.,6,The Realities of Economic Change,Many transition economies face,infrastructure shortages.,Capital shortages are also a major constraint.,It is difficult for corporations to respond to demand because consumer knowledge is vague.,Allocation mentality,or waiting for instructions from above,represent a management problem.,Employee and manager commitment can be hard to find.,The changes complicate managerial decision making.,7,The Realities of Economic Change,(cont.),Given the poor market orientation in the previous business environment,managers must adapt their behavior in these areas:,Problem Solving,Decision Making,Customer Orientation,Development,Team Building,8,Adjusting to Global Change,Resistance to change should be expected in countries that experience rapid economic and political change.,The established market economies of the West also must be prepared for change due to:,The reorientation trade flows,Job shifts,Declines in employment,9,International Business Challenges,The frequent unavailability of convertible currency makes many products out of reach for citizens of emerging market economies.,Lack of protection of intellectual property rights dissuade firms from investing in emerging market economies.,Attempting to source,products from emerging market economies can be problematic.,The quality of products can be inferior in emerging market economies.,10,International Business Opportunities,Some transition economies have products that are unique in performance and can be successfully traded internationally.,Consumer products in transition economies are gaining favor because of competitive pricing.,There are substantial opportunities for technology transfer.,11,Reasons for State-owned Enterprises,The reasons for the existence of state-owned enterprises in emerging market economies are:,Increased national security,Increased economic security,The investment is too large for the private sector,Governments rescue failing private enterprises by placing them in government ownership,State-owned firms are more socially-oriented than private firms which are more profit-oriented,12,State-owned Enterprises and International Business,The three types of activities where firms are likely to encounter state-owned enterprises:,Market Entry,The Sourcing or,Marketing Process,International,Competition,13,Drawbacks to State-owned Enterprises,Competition is restrained,which results in lower quality of goods and reduced innovation.,The international competitiveness of state-owned enterprises declines,resulting in the need for government subsidies.,Many government-controlled corporations are losing money because the focus is on job allocation rather than business.,14,Reasons for Privatization,Through,privatization,budgets can be reduced and more efficient services can be provided.,Goods and services can be more competitive and innovative.,Experience indicates that private enterprises outperform state-run companies.,Privatization attracts foreign investment capital.,Governments can use proceeds from privatization to help fund other pressing domestic needs.,15,Privatization Opportunities for International Firms,Existing firms can be acquired at low cost,often with governmental support through tax exemptions,investment grants,special depreciation allowances,and low-interest credits.,Since wages are low in countries where privatization takes place,there is more opportunity to build low-cost manufacturing and sourcing bases.,The international firm can act as a catalyst by accelerating the pace of transferring business skills and technology and by boosting trade prospects.,16,The Less-developed Markets,The less developed markets in the world include countries in:,Africa,Asia,Eastern Europe,Latin America,the Middle East,The emergence of these markets presents a great opportunity for citizens and companies alike.,17,The World Economic Pyramid,Annual Per Capita Income,Tiers,World Population,More than$20,000,$1,500 to$20,000,Less than$1,500,75 to 100 million,1.5 to 1.75,billion,4 billion,1,2 and 3,4,18,Multinational Firms Role,Multinational firms have experienced a high rate of success when entering transition economies for several reasons:,They tend to enter sectors that allow high profit potential with minimal capital investments.,They increase in size only after they gain experience and knowledge of the local markets.,The governments in transition economies award special privileges to multinational firms.,As multinational firms mature in these economies,the domestic market itself becomes a market opportunity.,19,World-class Competition,Many economies now recognize that they must be,world class competitors,in order to develop businesses.,Domestic firms enter into joint ventures with global firms to tap into their knowledge base and success.,This can be difficult,given that domestic firms rarely have significant capital to contribute.,20,Section,4:Car financing in China,I China and the WTO,China became a member in December 2001;,During negotiation,gradually liberalizing trade and investment policies;,Commitment to establish clear and enforceable nondiscriminatory rules to conduct business;,Fastest growing in(1990s),annual real GDP growth averaging 10.8 percent;,Integration into the world results in spectacular numbers both in trade and investment;,Receive more FDI in 1990s than any country except the US;,Low currency risk;,Corporations benefit from liberalization measures;,Business leaders quite realistic;,Political change quite slow vs.adverse effects of WTO membership:SOEs and oppositions from regional/local governments;,II Changes in the Car Market in China,A full-scale price war in first month of 2002;WTO entry:tariff decrease 80%-50%-25%,Carmakers brace intense competition;,Lower prices and more choices;,Great sales expectations;,III Market Structure for Car Financing in China(beginning of 21,st,century),A very small market for auto financing;in the year of 2000,about 600,000 cars sold,16%were financed,of which two thirds were business-to-business loans between banks and taxi companies,Reasons from governmental aspect;,In the year of 2014 situation change;,IV Market Entry for Auto Finance Companies,Automakers launch auto-financing services subsidiary;,(Chinese)banks set up special auto financing institutions;,Nonbanking financial institutions form auto financing company;,Existing lending consortiums provide financing services for auto companies sales divisions;,