Foreign Market Research Articles

The Impact of The Sovereign Credit Rating on The Possibility of Financing External Loans to The Iraqi Economy

External loans are a source of credit revenue. The process of obtaining it requires determining the degree of credit risk by predicting the financial solvency of the economy to judge its financial ability to pay the principal and interest dues of the loan at the specified maturity date. Considering that ability is a determinant of the creditworthiness of his economy, the extent to which financing can continue with this external credit source and its cost. The government of Iraq faced the difficulty of financing external loans from the international capital markets with its high return due to the lack of a sovereign credit rating that measures the risk of default through a process to determine the degree of that risk for investors of external lending funds. Therefore, the research came to show the effect of determining the sovereign credit rating on the extent to which the Government of Iraq can finance foreign loans, whether from capital markets or foreign governments and the impact of this classification on the credit facilities granted. The research concluded that the economy of Iraq got a sovereign credit rating within the degree of creditworthiness according to the classification of speculation to reflect the possibility of default in payment due to the dependence of the financial solvency of its economy on oil revenues, as the credit risks rise due to the inability to pay in the event of a decline in prices in the foreign market. However, relative stability within the short term enabled the Iraqi government to obtain foreign loans, with the requirement that Iraq provide guarantees by foreign governments and institutions in exchange for this source of credit.

Independence or interdependence: The role of artificial intelligence in corporate entry mode for overseas energy investments

Artificial intelligence (AI) technology has significantly transformed corporate behavior in the energy sector by enhancing the capacity and efficiency of information transmission and big data analysis. However, there is still a limited understanding of how AI influences new market entry mode strategies in overseas energy investments. Drawing on information processing theory, we propose that firms with advanced AI technology exhibit superior data processing capabilities, which can help energy companies mitigate the uncertainties associated with entering a foreign market and encourage them to choose a wholly-owned entry mode. We further hypothesize that the state ownership of firms, the political affinity between home and host countries, and the risk preferences of firm executives serve as moderating factors. Using a sample of Chinese-listed multinational firms in the energy sector from 2010 to 2021, our empirical results strongly support these predictions. These findings contribute to the emerging and crucial literature on the impact of AI technology on firms’ overseas investment behavior, particularly in the energy sector.

Review of the foreign market for bioelectrically controlled upper limb prostheses

Review of the foreign market for bioelectrically controlled upper limb prostheses

The planning process for marketing a service about to enter a foreign market: a concept case study

Purpose of the article – this case study aims to provide a strategic marketing plan aimed at facilitating a successful deployment of the conceptual “BurKI” SaaS into the highly competitive German market. Research methodology – the concept is developed based on the analysis of market dynamics, competitor landscape, and cultural nuances of the target consumer base. Drawing from the 7P Marketing Mix framework, we consider product adaptation, pricing strategies, distribution channels, promotional strategies, and organizational structuring. Findings – this study highlights the importance of localization, the digital nature of its marketing strategy, and alignment of brand values with the target consumer. It expands on the need for flexibility, adaptability, and continuous monitoring to ensure effective implementation, and lastly market penetration. Practical implications – the herein described strategies aim to offer practical insight for businesses seeking to expand into international markets, particularly culturally diverse targets like Germany. By putting emphasis on customer-centricity, agility, and innovation, businesses can improve their competitiveness and establish a strong presence. Originality/Value – this concept case study contributes to the literature by providing a comprehensive marketing plan tailored specifically for the German market, integrating both theoretical frameworks and practical insights. It highlights the importance of cultural sensitivity and strategic planning in the deployment of an international marketing campaign

Product Introduction with Parallel Importation

The aim of this paper is to investigate the manufacturer’s product introduction decision when entering a foreign market by considering parallel importation. This paper considers a situation where a manufacturer already sells an original product directly in the domestic market and decides to introduce an original product, a new product, or both through a retailer in a foreign market, and a parallel importer may divert the original product across markets due to price gap (we call it parallel importation). This paper shows that when consumers perceive gray products as perfect substitutes for authorized products, the manufacturer switches from introducing two products to introducing a new product and still maintains the quality of the new product in the presence of parallel importation. Furthermore, in response to parallel importation, the manufacturer not only narrows the price gap for original products between two markets but also reduces the wholesale price of new products in the foreign market. In addition, parallel importation always hurts the retailer but may benefit the manufacturer. Counterintuitively, parallel importation always improves social welfare in the domestic market but may damage social welfare in the foreign market.

Стратегии выхода российских организаций на международные рынки в изменившихся внешнеэкономических условиях

The change in the system of world economic communications as a result of sanction policy towards Russia and its allied countries forces enterprises and organizations to prove strategies of entry into foreign markets for the purpose of income generation and inclusion in new value chains. Therefore, the purpose of this research is the comparative analysis of factors and assessment of the application of international market entry strategies of Russian IT companies. Qualitative and quantitative methods of economic research were applied to achieving this goal. Qualitative methods included PESTEL analysis, situation and comparative analysis. Quantitative methods included the cost-benefit method, statistical techniques and economic analysis methods. Tabular and graphic approaches are used for text visualization. In this research the factors influencing organizations activity in the international sphere and also the main foreign market entry strategies of IT companies were analyzed. Comparative analysis revealed benefits and shortcomings of each strategy, taking into account modern forms of business and currency risks. For the Russian IT company producing software three strategies were evaluated: export, franchising and direct investments. The choice of the IT industry for considering international market entry strategies of Russian organizations is proven. It is necessary to separate the development of new technologies and infrastructure, existence of financial resources and pressure of economic sanctions from the factors influencing this process. Of the three strategies analyzed, the lowest-cost and lowest-profit strategy was the franchising strategy; it can be used when there is a shortage of financial resources. For “growth hacking” the expensive, but highly profitable strategy of direct investment taking into account currency hedging is applicable. Proceeding from the analysis of the influencing factors and legal conditions of the Russian Federation it is expedient to follow the strategy of average profitable export for ensuring company development. The practical application of strategies for organizations to enter foreign markets is a multifaceted object of research that requires a comprehensive analysis of various aspects of business expansion. The received results will help companies make weighed decisions when choosing the optimum strategy for expanding their business in the international market.

Strangers in a Strange Land: Legitimacy Formation by Polish Multinationals Venturing into Sub-Saharan Africa

Our paper revisits one of the fundamental questions of International Business (IB) scholarship, investigating the ways through which multinational enterprises (MNEs) establish legitimacy when entering a foreign market. We address this question in a novel context of Central and Eastern European (CEE) firms venturing into Sub-Saharan Africa (SSA), employing a multiple case study approach. We investigate the process of legitimacy formation by Polish firms entering SSA for market-seeking reasons. We find that the firms studied use their initial liabilities of foreignness, outsidership, and origin as starting points for pragmatic, moral, and cognitive legitimacy-building by developing narratives that neutralize the distance between themselves and important local stakeholders. Our findings contribute to an understanding of the contingent nature of ‘liabilities’ in IB literature and shed light on the role of narratives in the internationalization process.

Consulting on the financial market in the system of improving the financial results of the enterprise’s activity

The relevance of the paper is determined by the fact that the socio-economic crisis in Ukraine is caused by the external aggression of the Russian Federation and is combined with global factors that reinforce negative trends. For Ukraine, as well as for rich other countries, it is important to take effective approaches to deal with crisis situations and ensure sustainable economic growth, including for implementing a wide range of approaches, such as financial stimulation, reforms in Galusia, regulatory policies, support for small and medium-sized enterprises. It is also important to consider the global context and work with international partners to ensure stability and growth. Implementation of effective strategies and measures can help Ukraine overcome the crisis, win the undeclared war and strengthen its economy in the future. The paper shows that financial consulting is an integrated approach to optimizing the financial activities of a business, which includes a variety of information and resources to achieve maximum efficiency. It plays an important role in ensuring the success of government entities both in domestic and foreign markets. Financial consulting plays an important role in the current development of businesses and emerging financial problems. Financial consulting contributes to increasing the efficiency of the company's internal activities, helps business entities to improve their interaction and financial relations with counterparties on the foreign market through the study and analysis of financial aspects of partnerships, the conclusion of agreements and contracts, as well as planning financial strategies in order to ensure stability and success in business. Activation of the use of financial consulting services in Ukraine is a key factor for the progressive development of business entities and the strengthening of the country's market economy. Using the advantages of financial consulting will help enterprises to optimize their financial activities, improve strategic planning and decision-making, increase management efficiency, as well as increase competitiveness on the international market.

Foreign market network and internationalization of domestic firms: A systematic literature review

This study examined foreign market network and internationalization of domestic firms. It was carried out to identify the contemporary foreign-market networks available for domestic firms seeking internationalization; the ways in which foreign market network facilitates the internationalization of domestic firms; and the major barriers to the internationalization of domestic firms in contemporary extant literature. To that end, a systematic literature review methodology was adopted. Through a thorough search process supported by a set of stringent inclusion-exclusion criteria, 103 relevant articles were included in this review. The articles were analyzed using in-depth content analysis method augmented with descriptive statistics. The study found that the contemporary foreign-market networks for internationalization can be grouped into 18 categories. It was also found that foreign market network can enhance the internationalization agenda of domestic forms by providing access to distribution channels, risk mitigation, and enabling access to market knowledge and insights, among other key findings. Therefore, the study recommended the following, among others: Domestic firms seeking to internationalize should seek out foreign market networks using personal contacts, social media and the internet generally in order to gather substantial market intelligence about the countries to which they intend to expand their operations; and domestic firms can leverage foreign market networks by establishing strategic partnerships with local distributors, leveraging international trade associations, and utilizing cross-border collaborations to gain market insights, access distribution channels, and build relationships with key stakeholders, facilitating the successful execution of their internationalization strategy.

A knowledge-based perspective on SME foreign market entry mode choices and changes

PurposeDespite the importance of foreign market entry mode (FMEM) decisions for the internationalisation of small and medium-sized enterprises (SMEs), there is insufficient understanding of the knowledge types and sources necessary for such decisions. This study addresses this issue by investigating the knowledge configurations that underpin FMEM initial choices and subsequent changes in SMEs.Design/methodology/approachThis study adopted an interpretive approach and analysed empirical data from 37 in-depth interviews with decision-makers in internationalised SMEs from the United Kingdom.FindingsThe findings reveal that different knowledge configurations drive FMEM decisions in SMEs. Based on the analysis conducted for this study, initial FMEM choices draw on prior experiential knowledge combined with knowledge from desk research and knowledge acquired from peers, competitors and international partners. However, unlike many previous contributions, this research shows that foreign market experiential knowledge does not influence mode changes. Within-mode changes rely mainly on mode-specific knowledge and on knowledge about exploiting the benefits of the internet and digital platform ecosystems. Conversely, between-mode changes draw on diverse knowledge that is frequently created in interaction with international stakeholders or acquired externally.Originality/valueThis study contributes to the SME internationalisation literature by highlighting the knowledge configurations that inform not only initial choices but also between- and within-mode changes. Moreover, it reveals the importance of distinct types of digital technology-based knowledge for facilitating mode changes. It also adds to the knowledge-based perspective by underscoring that dynamic and heterogenous knowledge configurations, often created in interaction with international stakeholders, promote firm internationalisation.

Foreign market expansion of ecosystems: a process model

ABSTRACT Ecosystems of actors that need to interact to create value for end users are becoming an integral part of firms’ strategic realities as they reach new markets. However, the phenomenon of ecosystem internationalisation has not been explored in comparison to its practical prevalence. We conceptualise this phenomenon as agent-led structuration on new markets. We build on the structural ecosystem literature and literature on internationalisation challenges to create our recursive process model of ecosystem creation on foreign markets. Creating ecosystems on foreign markets necessitates new ecosystem structures that are adjusted to value propositions by orchestrators through interaction with foreign market actors. The model explains how ecosystem orchestrators drive the international expansion of ecosystems through blueprinting and aligning mechanisms and how these mechanisms help manage liabilities of foreignness. The model accounts for the agency of involved actors, and with the help of the bottleneck concept bridges international business and ecosystem literatures.

Analysis of Japan’s Experience of Implementing Technological Sovereignty Strategy

The article discusses the purpose of technological sovereignty of each state and its role for economic sustainability. The essence of technological sovereignty in the aspect of various scientific approaches is revealed as well as the boundaries of the sovereignty type under consideration are determined, taking into account production and knowledge-intensive components. Attention is focused on the features of Japan’s transition from a state in isolation to a state interacting with the outside world through technology. The essence of Japan’s approach to ensuring its own economic stability against the background of technological production is revealed. Japan’s place in the world rankings is considered in terms of technology and the number of registered patents for inventions. The indicators of capital investments, industry priorities, labor force in technological industries, the level of exports of goods and services from GDP, the trade balance from GDP, the level of exports of high technologies for 2020–2022 against the background of strengthening Japan’s technological sovereignty are analyzed. The forecast estimates of the technological future of Japan are determined, taking into account the priority in the national economy and the specifics of entering the foreign market with a new technological development. These forward-looking estimates take into account the specifics of the import of raw materials and their intended purpose to ensure technological sovereignty in the foreseeable future. As a result, there is a high probability of having a certain economic algorithm that allows the Japanese economy to restore the desired stability indicators in a short time. Therefore, it is necessary to conduct applied research in order to identify the essence of the economic algorithm used by Japan to strengthen technological sovereignty and ensure economic stability in a short time for subsequent possible adaptation in the Russian economy.

Innovative Packaging of Local Food Products for Home and Foreign Markets: Case of Dala Foods Nigeria Ltd.

Innovations in packaging has seen significant development due to industrial processing of food and need for instant food due to lack of time to prepare food from fresh ingredients. This study explores the application of packaging in marketing local food products in local and foreign markets with a special focus on an indigenous food processing company; Dala Foods Nigeria Limited, makers of packaged Kunun Tsamiya brand. The study adopts qualitative research approach through case study method in order to have an in-depth exploration of how packaging contributes to the success of Kunun Tsamiya in the market. The selection of participants is made by applying a non-probability sampling technique through convenience sampling. Structured open-ended questions are applied in the interview and the responses are presented using descriptive analysis of the thematic areas covered by the interview. Findings of the study reveal that packaging is a valuable marketing tool as it plays a significant role in food product marketing. Similarly, it contributes immensely towards the marketing and success story of Kunun Tsamiya in both local and foreign markets. Therefore, it is highly recommended that our local companies and individual producers of food products should warmly embrace and use proper packaging in marketing their products without any delay.

Foreign market entry with circular business models: a customer-centric approach

Circular business models have been developed in recent years, driven by concerns over environmental sustainability. The circular business models are initially tested domestically, but businesses may aspire to expand internationally with it. However, entering foreign markets with circular business models, which include novel products and innovative services, may be challenging. Moreover, generalized foreign market entry criteria for circular business models are lacking. This in-depth case study utilized a mixed-method approach to shed light on the tactical adaptations businesses need to make in their circular business model when entering foreign markets while also ensuring economic competitiveness. The case includes foreign market entry with a circular “service" business model; therefore, we emphasized the customer side of the business model canvas related to customer relationships. In our conclusion, we identify five tactical adaptations, namely implementing a co-creation tool for customization, offering tangible customized benefits, increasing investment in social media marketing, utilizing start-up incubators/accelerators/co-working spaces as a marketing channel and offering adjustable contract lengths. Foreign markets with circular business models and involving the value network partners of the business are also expected to expand the positive externalities of circular economy internationally.

Topic Modelling of Management Research Assertions to Develop Insights into the Role of Artificial Intelligence in Enhancing the Value Propositions of Early-Stage Growth-Oriented Companies

The article suggests a Value Proposition (VP) framework that enables analysis of the beneficial impact of Artificial Intelligence (AI) resources and capabilities on specific VP activities. To develop such a framework, we examined existing business and management research publications to identify and extract assertions that could be used as a source of actionable insights for early-stage growth-oriented companies. The extracted assertions were assembled into a corpus of texts that was subjected to topic modelling analysis—a machine learning approach to natural language processing that is used to identify latent themes in large corpora of text documents. The topic modelling resulted in the identification of seven topics. Each topic is defined by a set of most frequent words co-occurring in a distinctive subset of texts that could be interpreted in terms of activities constituting the core elements of the VP framework. We then examined each activity in terms of its potential to be enhanced by employing AI resources and capabilities. The interpretation of the topic modelling results led to the identification of seven topics: (1) Value created; (2) Stakeholder value propositions; (3) Foreign market entry; (4) Customer base; (5) Continuous improvement; (6) Cross-border operations; and (7) Company image. The uniqueness of the adopted topic modelling approach consists in the quality of the assertions and the interpretation of the seven topics as an activity framework, i.e., in its capacity to generate actionable insights for practitioners. The additional analysis suggests that there is a potential for AI to enhance the emerging four core elements of the VP framework: Value created, Stakeholder value propositions, Foreign market entry, and Customer base. More importantly, we found that the greatest number of assertions related to activities that could be enhanced by AI are part of the Customer base topic, i.e., the topic that is most directly related to the growth potential of the companies. In addition, the VP framework suggests that a company’s customer base growth is continuously enhanced through a positive loop enabled by activities focused on the Continuous improvement of the activities and the amount of Value created, the alignment of Stakeholder value propositions, and companies’ Foreign market entry. Thus, the multiple-stakeholder perspective on VP development and foreign market entry appears as a factor that helps in understanding the beneficial impact of AI on the enhancement of the VP of early-stage growth-oriented companies.

Вербальные инструменты глокализации рекламных трендов (на примере рекламы российских брендов экокосметики)

In the paper, on the example of the trend towards environmental friendliness, the specifics of the glocalization of modern advertising trends are considered. The authors proceed from the hypothesis that current social trends exploited by advertising discourse should be subjected to national customization. Glocalization is considered as the only way that ensures the effectiveness of global marketing processes. According to the authors, universal trends in different national linguistic and cultural communities will differ: the dynamics of globalization is constantly reinterpreted at the local level, leading to interpenetration of the global and the local. Thus, in advertising discourse, glocalization becomes a communication strategy that enhances the attractiveness of the product or service being promoted. The study of communication strategies used in the framework of adaptation activities in the foreign market is one of the important aspects of this issue, no less important is the consideration of the process of glocalization of global marketing trends – taking into account the value identity of a particular society. Current world trends at the local level undergo cognitive glocalization, which is objectified in language. In the case of the material selected for analysis (advertising of eco cosmetics), glocalization is carried out at all levels of the advertisement text (naming, the advertisement message itself, information on the package, etc.) through certain language tools. So, among the most frequent ones the authors note the use of place names, an appeal to precedent phenomena, stylization as folk poetic speech and some others, more specific means. The material for the study was the names and logos of Russian brands of natural cosmetics (more than 500), as well as more than 130 advertisement and PR texts that position and promote the products of Russian cosmetic eco-brands. During the study, the following set of methods was used: descriptive, analytical, functional, pragmatic, semiotic, complex intertextual analysis, as well as methods of systematization and classification.

Modern banking development during natural disasters: Evidence from the early 20th century China

How do commercial banks react to natural disasters? Using data for 375 droughts in 262 prefectures in China during 1906–1927, we find that drought-affected prefectures have more private bank inceptions than unaffected ones. The results remain robust to socioeconomic characteristics, foreign market exposure, and conditions of neighboring prefectures. This effect is driven by the prefectures with more agriculture-dependent enterprises, suggesting that banks meet local financial demand. On the other hand, new banks would enter less when the prefecture has more incumbent banks connected to drought-free areas. We argue that capital size and the network of capital reallocation are two advantages of banks coping with natural disasters over alternative financing vehicles such as pawn shops and foreign banks. In addition, the effect is greater among the prefectures practicing common law and with greater social capital, consistent with existing studies that bank credit supply depends on creditor rights protection. Finally, we show that drought-affected regions with more private bank inceptions have better development in agricultural businesses and social stability.

Marketing Channel Analysis, Marketing Margins, and Farmer's Share Cinnamon Commodity in Sungai Penuh City, Jambi Province, Indonesia

The cinnamon commodity is quite significant in the economy of Sungai Penuh City, but farmers have not felt its role in improving welfare. The fundamental problems faced by cinnamon farmers in Sungai Penuh City are the weak bargaining position of farmers in the pricing process due to lack of access to price information, the attachment of farmers to collecting traders, and the limited ability of farmers to develop processed cinnamon products allegedly resulting in farmers only getting a small profit from sales. Traders, collectors, and exporters process more to meet domestic and foreign market demand. For this reason, an analysis of the existing condition of marketing margins and farmers' share of cinnamon commodities in Sungai Penuh City is needed. The purpose of this study is to analyze cinnamon marketing margins between farmers, collecting traders and exporters in each marketing channel in Sungai Penuh City, analyze the amount of farmers share obtained by farmers in each cinnamon marketing channel in Sungai Penuh City, and analyze cinnamon marketing functions in the form of physical functions, exchange functions and facility functions between farmers, Collecting traders and exporters in Sungai Penuh City. To answer the study's objectives, the author uses marketing margin analysis methods, profit margin analysis, farmer's share analysis, and marketing function approaches in physical, exchange, and facility functions. This research method uses a qualitative descriptive approach, and the informants in this study are determined by purposive sampling. The results showed that as many as 60 percent of cinnamon farmers in Sungai Penuh City chose and 40 percent chose the two-actor marketing channel. In contrast, the cinnamon marketing channel involving three marketing actors showed that the marketing system was inefficient. In contrast, the cinnamon marketing channel involving two marketing actors showed that the cinnamon marketing system in Sungai Penuh City was efficient.

ПЕРСПЕКТИВИ ВИРОБНИЦТВА КВАСОЛІ В КОНТЕКСТІ НІШЕВОЇ ДИВЕРСИФІКАЦІЇ СІЛЬСЬКОГО ГОСПОДАРСТВА ТА НАРОЩУВАННЯ ЙОГО ЕКСПОРТНОГО ПОТЕНЦІАЛУ

The global trends in the production and trade of beans were analyzed, the level and dynamics of export-import operations of Ukraine in this market segment were investigated, the prospects of crop production were substantiated in the context of niche diversification of the domestic agrarian sphere and the expansion of its export potential. It is noted that during the last decade, the volume of world production of beans has remained relatively stable within 29 million tons. The leading countries are India and Brazil, the combined share of which in the world crop harvest in 2022 was 36.2%. A third of the world's bean exports go to Myanmar – the main exporter of legumes to India. The main importers of beans are India and China, these countries supply 32.5% of the world's import of the crop.In the overall structure of foreign trade, the share of Ukrainian beans in 2022 was 1.2%. During 2018-2022, the value of culture exports from Ukraine was characterized by an upward trend. Almost all export (99.9%) and import products (95.4%) are white bean varieties The main buyers of Ukrainian beans were Italy, Pakistan and Poland. In 2022, 53.4% of exports were sent to these countries. On the foreign market, Ukraine mainly buys elite bean seeds. In 2022, 85.6% of its total imports were supplied from Poland. It is noted that in modern conditions, beans are a promising niche crop for the domestic agriculturist, since logistics is less affected by it than grain crops, the demand in foreign markets is high, in addition to economic, the introduction of beans in crop rotation also provides an ecological effect. The export potential of beans is determined by the growth of global demand for processed legume products (chips, hummus, vegetable minced meat, nuggets, burger patties, etc.).

Impact of Price Changes on the Exported Quantities of Some Egyptian Agricultural Crops in its Most Important Foreign Markets

Impact of Price Changes on the Exported Quantities of Some Egyptian Agricultural Crops in its Most Important Foreign Markets