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Markets: A Long Run Perspective - Coggle Diagram
Markets: A Long Run Perspective
Evolution of International Markets
From the Roman Empire to the Mongol Empire to the Voyages of Columbus
Large Investments in developing markets
Control tarrifs and Barriers
1960:
appearance and growth of
global financial markets,
Deregulation and Privatization opened up many industries
IB Strategies in the First Global Economy
Natural Resources and Cheap Labor
Legacy of Constrained autonomy and colonialism
Prevailing political economy
Market and Resources of host emerging markets
Transport and communication infrastructure
Competition of local firms
First Global Economy: 1850-1929
Emerging Markets
A major challenge for developing markets was political risks
Assistants of home governments to resists expropiation
Localization of staff
Example of Unilever
Challenges regarding nationalization
Innovations in the oil industry
Multinational firms realized the power of cultural factors when entering international markets
Second Global Economy
Lowering of barriers in foreign companies
Off-shoring of services gained momentum.
Revolution of the World Wide Web (www)
Local cultures asserted themselves with more confidence
More effective competition between local and international companies
global vs local