Foreign Market Research Articles

External finance dependence, financial development and exports: a firm-level study from India

PurposeThis study aims to add to the growing literature on the trade–finance nexus by exploring the interplay between a country's level of financial development, the external finance dependence of firms and their exporting decisions.Design/methodology/approachThe study first develops a theoretical model to motivate the idea that a firm's liquidity (financial) position and its home country's level of financial development act as substitute factors in its export market entry decisions. It then empirically tests whether an improvement in a country's financial development level enhances the number of entrants in the foreign markets and boosts the exports of incumbent exporters using firm-level data of manufacturing firms in India for the period 1993–2020.FindingsEmpirical results suggest that a higher level of financial development helps increase the exporting probability of firms that rely more on external finance for their operations. Further, the study finds that the sunk costs-induced hysteresis effect plays a major role in firms' exporting decisions and financial factors don't play a significant role in the exporting activities of incumbent exporters.Practical implicationsThe findings suggest that a well-developed financial market is necessary to help more and more firms initiate their foreign market operations. The results underscore that trade-liberalisation measures alone may not increase India's exports and the government must complement them with financial sector reforms.Originality/valueStudies highlighting the role of financial sector development in helping financially-constrained Indian firms overcome the entry barriers associated with exporting are extremely limited. This study contributes to this nascent literature by conducting an empirical investigation on an extensive database of Indian manufacturing firms. Moreover, in contrast to the previous firm-level studies in this area, this empirical analysis uses the actual values of external finance raised by the firms as a critical factor in determining their extensive and intensive margin of exports instead of the usual balance sheet variables such as liquidity and leverage.

Firms Financial Inclusion and Export Performance: Evidence from Manufacturing Sector Firms in Pakistan

Financial inclusion of firms is crucial to create jobs, boost economic growth, and promote sustainable development. The study examines how financial inclusion affects enterprise export performance based on access to finance ratios. The study analyses the effects of firms’ financial inclusion determinants and macro environment factors on firms’ export values. The data comes from Pakistan’s manufacturing sector covering 400 firms listed on Pakistan Stock Exchange from 1999-2021. Driven by the nature of the data, the Method of Moment Quantile Regression is employed to assess the below and above mean regression estimations, and a two-step system GMM approach is used to address endogeneity concerns. The results of the study are robust against different specifications. The study reveals that assets positively impact a firm’s export performance, emphasising the importance of asset investment for foreign market competition. Asset tangibility negatively impacts export performance, except for low-gearing corporations, and fixed assets dominate. A balanced asset mix is crucial for improving exports. Debt-to-equity ratios, except for high-gearing firms, boost export performance, but domestic firms with high leverage ratios are more likely to fail. To avoid excessive leverage risks, firms must balance debt and equity. Diversifying the asset mix to include liquid and intellectual property can boost export success. Gearing affects export performance differently depending on a firm’s debt levels. Low-geared enterprises can leverage assets and debt to boost exports, while high-geared enterprises may be financially constrained and face challenges from excessive debt. Therefore, enterprises must carefully examine their gearing levels and make informed decisions on optimising their asset composition for optimal export performance. The study also opens up the possibility of further research on the role of exchange rates and firms’ investment in line with export performance.

Firms Financial Inclusion and Export Performance: Evidence from Manufacturing Sector Firms in Pakistan

Financial inclusion of firms is crucial to create jobs, boost economic growth, and promote sustainable development. The study examines how financial inclusion affects enterprise export performance based on access to finance ratios. The study analyses the effects of firms’ financial inclusion determinants and macro environment factors on firms’ export values. The data comes from Pakistan’s manufacturing sector covering 400 firms listed on Pakistan Stock Exchange from 1999-2021. Driven by the nature of the data, the Method of Moment Quantile Regression is employed to assess the below and above mean regression estimations, and a two-step system GMM approach is used to address endogeneity concerns. The results of the study are robust against different specifications. The study reveals that assets positively impact a firm’s export performance, emphasising the importance of asset investment for foreign market competition. Asset tangibility negatively impacts export performance, except for low-gearing corporations, and fixed assets dominate. A balanced asset mix is crucial for improving exports. Debt-to-equity ratios, except for high-gearing firms, boost export performance, but domestic firms with high leverage ratios are more likely to fail. To avoid excessive leverage risks, firms must balance debt and equity. Diversifying the asset mix to include liquid and intellectual property can boost export success. Gearing affects export performance differently depending on a firm’s debt levels. Low-geared enterprises can leverage assets and debt to boost exports, while high-geared enterprises may be financially constrained and face challenges from excessive debt. Therefore, enterprises must carefully examine their gearing levels and make informed decisions on optimising their asset composition for optimal export performance. The study also opens up the possibility of further research on the role of exchange rates and firms’ investment in line with export performance.

Ethnic fashion designers, entrepreneurs and family businesses: an African marketing perspective

PurposeThe purpose of the perspective article is to review relevant literature on family business and ethnic fashion and establish links across identity (defined as culture, tradition, heritage and status) and fashion (color, design, pattern and fabric/texture) and internationalization (foreign market entry), and develop a conceptual model using the identity theory and qualitative method.Design/methodology/approachThis is a qualitative study by design. We used a systematic research and ethnographic method for this study. Specifically, the author used the participant observation aspect of ethnography to collect information and images relating to ethnic fashion. Ethnography is a well-established methodology widely used in social sciences research, including fashion.FindingsThe study's conceptual model proposes that (1) ethnic fashion mediates the identity-internationalization relationship, (2) knowledge transfer moderates the identity-ethnic fashion relationship and (3) family business size moderates the ethnic fashion-internationalization relationship. It is also revealed that a person's status can be judged by their dress and fashion in under two minutes.Research limitations/implicationsThis study is limited to the African continent, though it has 54 countries with a current population of about 1.5 billion people, which is expected to be roughly 2.5 billion by 2050.Practical implicationsImplications of the study for the entrepreneurs and family businesses are that they should realize the opportunities presented by ethnic African fashion and tap into the most crucial key to success—local design, color, fabric and patterns associated with meaning and messages. Cross-cultural collaborations and digital innovations can help the internationalization of African fashion while preserving local heritage and identity. Another implication is that quality and consistency in branding are equally essential to be on par with intentional luxury brands.Social implicationsThe social implication of the study is that culture and fashion are correlated and influence designers' creations, reflecting and conveying identity, status and societal values. Fashion allows people to express their identity, individuality and values. The proper fashion and outfit can boost mood, self-esteem and confidence, resulting in healthy social interaction and mental health. Fashion can also raise social issues (e.g. inclusiveness, diversity and gender by featuring various models and designs) and environmental issues (e.g. sustainable practices local and ethical production).Originality/valueThe paper synthesizes ethnic fashion in the context of family businesses in Africa, highlights specific examples of ethnic fashion of African people with the potential for internationalization and proposes future fashion perspectives for family businesses. It adds value in that it focuses on fashion family businesses in the African continent.

Multilatinas’ foreign divestment and host country institutional uncertainty: is there a best entry strategy?

PurposeThis paper aims to investigate the divestment behavior of emerging market multinationals from Latin America – multilatinas – by examining how their foreign market entry decision impacts the likelihood of subsidiary divestment.Design/methodology/approachThe hypotheses are tested using Cox’s proportional hazard rate model in a longitudinal database of Brazilian multinational companies established in 43 countries.FindingsResults indicate that these subsidiaries can thrive in environments that bear similarities to their home country, being less likely to divest in institutionally weak countries. Contrary to developed country multinationals, these firms benefit from foreign entry decisions that entail handling partnerships abroad; thus, wholly-owned greenfield (WOGF) investments have a higher likelihood of being divested.Originality/valueTo the best of the authors’ knowledge, this paper is the first to analyze foreign divestment from multilatinas, accounting for how entry mode strategy and host country institutions may impact these firms’ de-internationalization.

An Economic Study to Estimate the Almost Ideal Demand for Dried Beans and Dried Onions in the Most Important Foreign Markets

An Economic Study to Estimate the Almost Ideal Demand for Dried Beans and Dried Onions in the Most Important Foreign Markets

STRATEGI PEMASARAN UMKM OLEH-OLEH MAKANAN KHAS PONTIANAK

<p><em>Pontianak City has typical food souvenirs to support its tourism industry but still has problems in marketing the product. This situation has been getting worse since pandemic covid-19. This research aims to determine a marketing strategy for Pontianak food souvenirs MSMEs to increase their income. The research method uses a descriptive method with a SWOT analysis tool to determine alternative strategies. Samples were 19 informants consisting of 4 key informants and 15 regular informants. The SWOT analysis results led to a WO (Weakness - Opportunity) Strategy with five alternative strategies. 1) Promoting products through Facebook Ads. 2) Expand the marketing area by selling in supermarkets and e-commerces. 3) Utilize the government grants for MSMEs that Covid-19 hurt to promote and keep product availability. 4) Registering and displaying products at the Pontianak UMKM Center also has to participate in the business skills improvement program. 5) Participate in exporting programs and increasing product quality according to foreign market standards.</em></p>

INTERNATIONAL MARKETING STRATEGY OF THE COMPANY IN THE CONTEXT OF GLOBALISATION

In this scientific article, the importance of developing an international marketing strategy for companies in the context of globalization of the business environment and internationalization is considered. The article focuses on the processes of analyzing the markets of potential countries, selecting the most promising regions or countries, developing commercial offers for goods, services, and prices, as well as establishing plans for distribution and communication policy in international markets. The importance of in-depth market analysis and taking into account their characteristics in the formation of an international marketing strategy is emphasized, which should be aimed at achieving success in international markets by changing cognitive preferences through the use of smart marketing tools and an appropriate approach to marketing activities. This approach is defined as critical for the sustainable growth and prosperity of companies in international markets in the modern conditions of the global economy and competition. It has been proven that the successful operation of the enterprise on the global market is achieved due to a properly formed international marketing strategy. The purpose of the research is the analysis of theoretical aspects and the development of practical recommendations for the formation of effective marketing strategies in the conditions of globalization. The essence of the international marketing strategy, which should be developed and implemented when the enterprise enters foreign markets, is determined. It is noted that in the conditions of globalization, enterprises choose access to the global market and choose an international marketing strategy. For this purpose, an algorithm for forming a marketing strategy for an enterprise entering the international market is proposed, which includes the following stages: determination of the goals and possible tasks of the enterprise entering the international market, analysis of the international marketing environment, analysis of the resource base of the enterprise, decision on the feasibility of entering the foreign market, selection market, choosing a method of entering the foreign market, developing a market strategy, developing a product strategy, developing mechanisms for implementing the chosen international marketing strategy.

DEVELOPING A MARKETING STRATEGY FOR ENTERING FOREIGN MARKETS

The article is dedicated to the critical aspects and strategies that businesses need to consider when expanding their operations to international markets. This article explores the essential steps and approaches that companies must take to navigate the complexities of foreign market entry successfully. Entering foreign markets is a significant endeavor for any business, and it comes with both challenges and opportunities. The main goal of this article is to provide insights, guidance, and practical recommendations for businesses that are looking to expand beyond their domestic borders. In a globalized world, expanding internationally is often seen as a necessary step for growth and sustainability. One of the key points the article delves into is the importance of a well-crafted marketing strategy. It highlights that a one-size-fits-all approach is not effective when it comes to international marketing. Instead, businesses must adapt their strategies to the unique cultural, economic, and regulatory landscapes of their target markets. The article stresses the need for thorough market research and analysis to understand consumer behavior, local competition, and market trends.

Try to discuss the management problems and countermeasures in the development of high-end hotel in our country

Under the development trend of economic globalization, facing the opportunities and challenges brought by the development of the domestic and foreign market economy, the high-end hotel in our country is the important pillar of the tertiary industry, whether it is the business demand or the intensity of competition. By understanding the current development status of high-end hotels in China, understanding the management problems faced by reform and innovation, and putting forward effective solutions as soon as possible, it can lay the foundation for the sustainable development of high-end hotel industry in various regions. Therefore, this paper mainly studies the management problems and countermeasures in the development of high-end hotels in China.

Internationalization and corporate sustainability expenditure: The role of institutional support and foreign knowledge acquisition

AbstractThis study extends the literature on international business and sustainability by examining the impact of internationalization on corporate sustainability expenditures, and the conditions under which this relationship is enhanced or attenuated. Based on insights from institutional and firm resource theories, we examine the moderating effects of institutional support and foreign knowledge acquisition capability on the hypothesized relationship. Survey data were collected from 260 small and medium‐sized enterprises (SMEs) in Ghana, a developing sub‐Saharan African country, and analyzed using ordinary least squares (OLS) regression. The results indicate that increased internationalization levels are positively and significantly linked to corporate sustainability expenditure. In addition, the results of the moderation analyses reveal that the positive effect of internationalization on sustainability expenditure is stronger at high levels of institutional support for firms with high foreign knowledge acquisition capability. This study offers new perspectives and directions for improving SMEs' internationalization and sustainability practices through an integrated strategy that enhances the quality of domestic institutional environments by policymakers, augmented by managers' proactive efforts to develop their firms' foreign market learning capabilities. The limitations of this study and their implications for further research are discussed.

Mapping the barriers to socio-economic freedom in internationalisation of women-owned SMEs: Evidence from a developing country

Internationalisation of women-owned firms is considered a new strategy for unlocking the full economic potential of a country. However, there has been a desultory work on gender and trade, particularly the epistemological and methodological approaches to explore this phenomenon, which has received inadequate attention. Drawing on the institution-based- theory and incorporating the feminist perspective, this study identifies barriers to socio-economic freedom as a multidimensional concept that influences the internationalisation of women entrepreneurship. Using mixed methods and based on findings from focus group discussion (study-1), in-depth interviews (study-2) and a survey (study-3) of SME women entrepreneurs, the study develops and validates a gender-specific model of barriers to socio-economic freedom that women entrepreneurs face in the internationalisation of their firms. The findings confirm that the additional barriers that women entrepreneurs face emerge from three dimensions (i.e. socio-interactional patterns, socio-psychological attachment and socio-cultural embeddedness) that influence the internationalisation of women-owned SMEs through the lack of foreign market knowledge and information and lack of international business experience. This study extends internationalisation and women entrepreneurship research by identifying novel dimensions of the barriers to socio-economic freedom landscape. Implications of our findings for theory, methods and practice with limitations and future research directions are discussed critically.

Financial Aspects of The Company’s Pricing Policy on Foreign Markets

The aim of the article is to indicate the role of financial factors (forms of payment) in the pricing policy of a company that enters international export aid markets. The forms of payment used in exports, which should secure payment for exported products, have been presented. This is important because the proceeds from sales determine the implementation of the marketing strategy and survival on foreign markets. Factoring and forfaiting are particularly convenient for the exporting company, apart from letters of credit and collection.

ПОВЫШЕНИЕ ЭНЕРГЕТИЧЕСКОЙ ЭФФЕКТИВНОСТИ ВАРОЧНОГО КОТЛА ОПТИМИЗАЦИЕЙ РАБОТЫ ГАЗОВОЙ ГОРЕЛКИ

The use of natural gas in the heat treatment of feed reduces the cost of livestock products and increases competitiveness in the foreign market. An analysis of various modifications of gas-using digesters with a wide range of performance and design, offered by the foreign market, showed that their common disadvantage is the lack of automatic gas flow control in proportion to the heat flow used to heat the feed to boiling and during boiling. An energy-saving fodder boiler with an automatic gas flow control system in proportion to the consumed heat flow has been developed. The studies were carried out on an experimental sample of a feed boiler, in which an automated gas flow control system based on semiconductor thermoelectric elements acts on the actuator without intermediate output signal amplifiers. The efficiency of the automated energy supply system was studied by experimental studies of the dynamics of gas consumption in the process of thermal processing of feed in automatic and manual modes. It was found that the total gas consumption for the preparation of 100 kg of feed in automatic mode with gas flow control proportional to the consumed heat flow is 1.2 times less than when the boiler is in manual mode. The most optimal mode for saving fuel is provided when setting the gas burner in the initial period of heating up to a power of 14 kW for a digester with a volume of 100 liters. Gas overrun up to 20% occurs for boilers with more powerful gas burners (22 kW).

THE MAIN LIVERS OF A COMPANY EFFECTIVE STRATEGY TRADE TOOLS IMPLAMANTATION WITHIN FOREIGH TRADE ACTIVITY

By this currently issued article the ways for foreign market intrude and promotion were estimated. In focus the mission and target of a separate management decision were considered. It was a chance for any separate enterprise to be involved into international trade activity. Within a way of decision making could be deeply concerned about foreign trade activity strategy at a beginning. The main issue of the article is strategy development direction of the Company that provides any types industrial or trade activity targeting to foreign of overseas markets The most problematic point of this article concerns the main strategy issues for an enterprise within first steps and further development its international trade activity. All type of publishing and posted information about main livers for foreign trade activity is fruitful and respected within analyzing and be implemented for a practical side of trade promotion activity to overseas. The main reason for the present publication is new ways for successful foreign trade activity for all kinds of enterprises within its upgrading, first steps, either promotion their activity overseas. All kind of proposed points can be a separate subject for discussion or practical implementation depended from the terms and conditions of the foreign market or special type of enterprise behaving within intruding into foreign market. For companies and individuals not fully acquainted with export operations (however familiar they are with business practices in general and domestic operations in particular), this article offers a basic introduction to the «tools of trade»: export terminology survey, equipment, procedures, administrative backup, and essential sources of information. In the first step of your strategy decision you need to know that some office procedures apply to overseas trade in particular, such as the terminology used in business exchanges, the calculations necessary for making offers, and the system used to keep of quotation and transactions.

Organizational and economic conditions of operation of oil industry enterprises

The development of production and processing of oilseed products in Ukraine is a strategically important field of activity, as it creates competitive advantages in meeting demand on the foreign market and ensuring domestic needs. In the period of integration processes of the domestic agricultural market into global trade relations, an important issue is the search for ways to increase the economic efficiency of the production of oil crops. At the same time, the variability of environmental factors and the emergence of new principles and priorities for producing oilseed crops, which, during martial law, became highly relevant for Ukraine. The research aims to analyze the organizational and economic conditions of the functioning of oil industry enterprises in modern conditions. As a result of the conducted research, the high sensitivity of the market situation of oil crops was proven, which, in turn, depends on the ability of manufacturing enterprises to conduct their activities efficiently. At the same time, the following elements are considered: production location, product specifics, demand characteristics, and consumer behavior. It was determined that the balancing of supply and demand forces in this market could occur both situationally and under the regulatory influence of the state. Positive changes in the external environment can cause corresponding changes in the internal environment and enterprises' economic behavior. They will be able to reorient their activities in favor of domestic consumers. This will be facilitated by the restoration of regular, safe operation of enterprises, the growth of demand for food products in the domestic market, and changes in the industry structure of production and processing of oil crops. The level of prices for their products will cover the costs of their production even under the condition of exclusive supply to the domestic market. It is noted that those mentioned above organizational and economic conditions of the functioning of oil industry enterprises determine the decision-making regarding entry and exit from this market and form certain relationships in the market of oil crops for a specific time. Keywords: organizational and economic conditions, enterprise functioning, efficiency, production of oil crops, economic behavior.

The Empirical Study on the Relationship Between Market Indices Against the Chinese Market Index with the EPU as the Intervening Variable

This study aimed to explore the empirical study on the relationship between the foreign market indices against the Chinese market index with the EPU as the intervening variable where the study is targeted to provide the significant contribution to the academic as well as the investors to understand the movement of the stock market index. The previous study posed the strong suggestion on the potential positive correlation exist between the performance of the market indices with the economic policy uncertainty (EPU) being the effective intervening variable that will draw the expected of the result in the study forming the hypothesis for the study. The research methodology of quantitative method observes the application of the SPSS to analyze the data input for the secondary data collected for the market indices and EPU from 2012 to 2021 to be used to sum up the findings and result for the study. The outcome of the research findings had pointed out that the lack of suggestion with the previous study where the hypothesis is not accepted showing the opposite output had been achieved from the outcome of the study. With this, the study is summarized with the reflection on the literature review against the current findings before proceeding to draw the contribution of study as well as the suggestion for the future study that open opportunities for the future researchers

ASPECTS OF IMPLEMENTATION OF DISTRIBUTED GENERATION SOURCES IN THE ELECTRICITY SUPPLY SYSTEM OF ENTERPRISES OF THE AGRICULTURAL COMPLEX

Today, the agro-industrial complex of Ukraine determines the socio-economic development of the state, and is an integrated production and economic system, uniting a number of agricultural, industrial, scientific-production and educational sectors aimed at obtaining, transporting, storing, processing and selling agricultural products. However, at the current stage of development of the agro-industrial complex of Ukraine, a significant obstacle to ensuring the appropriate level of competitiveness of enterprises and their products on the foreign market is the high level of energy consumption. A separate problem is the complete dependence on the electric power system, which mainly uses traditional fuel resources and has a number of disadvantages, which creates risks for the effective functioning of a strategically important sector of the state economy and substantiates the relevance of scientific research aimed at improving the optimization of the structure of energy consumption and energy supply, in that including due to the introduction of elements of alternative energy at enterprises of the agro-industrial complex of Ukraine. Thus, by implementing DRG and RES, agro-industrial complex enterprises increase their capacities, which contributes to the attraction of investments and increases their competitiveness. This state of affairs leads to a review of the issue of the active introduction of RES into the electricity supply structures of agricultural enterprises, which is associated with negative effects on the electricity supply systems of electricity consumers. But the analysis of previous studies shows that with a certain combination of disturbances on the same and different harmonic components of energy processes of different types of generators, mutual compensation or mutual reinforcement of one or another harmonic component in loads may occur [1]. In addition, three-phase power transformers with a "star-zero-delta" group of connections are widely used in the power supply systems of agro-industrial complex enterprises to power electric machines and other powerful consumers. In this case, the supply voltage from distribution networks of 6-10 kV is supplied to the transformer windings connected by a delta, and consumers are connected to the low side of 0.4 kV, the windings of which are connected in star with neutral. However, recently, quite often generating power is installed on the low side of the transformer in the power supply system. These can be photovoltaic plants, biogas power plants or diesel generator plants, which began to be installed en masse after the power supply crisis associated with Russian aggression. The paper examines the advantages, problems and prospects of DRG based on renewable energy sources at Ukrainian agro-industrial complex enterprises, which proves its economic feasibility in power supply systems. The proposed approach is that the introduction of DRG based on renewable energy into the power supply system of agro-industrial complex enterprises contributes to reducing the level of energy dependence of these enterprises and is one of the factors of increasing the competitiveness of manufactured products on the domestic and foreign markets due to the reduction of the cost of their production. The introduction of RES into the structures of the centralized power supply system of agricultural enterprises increases the reliability of power supply systems by providing electricity from two independent power sources. In addition, the amount of electricity received from the power supply company is significantly reduced. The use of artificial intelligence technology in the construction of control systems for the combined power supply systems of agro-industrial complex enterprises will increase the quality of electric energy, optimal use of RES and reduce abnormal modes of operation of the electrical complex of agro-industrial complex enterprises as a whole.

Access to overseas information and domestic value added: Evidence from China

This study identifies information accessibility as a determinant of domestic value added (DVA). To establish causality, we use the sudden termination of Google’s search services in China to conduct a difference-in-differences estimation. Given that ordinary trades rely more on foreign market information than processing trades, we classify firms with high (low) ordinary trade exports as treatment (control) group and show that Google’s exit has a significant and persistent negative impact on DVA for treated firms. Our findings are more pronounced for firms in industries dominated by foreign technology and firms with more types of goods or higher capital intensity. The alternative access to foreign sources can weaken the impact of Google’s exit. Three underlying mechanisms associated with the falling accessibility of foreign information are the downward export growth, the rising costs of overseas intermediate inputs, and the decreasing innovation. Overall, this study enriches our understanding of a fundamental but neglected factor in driving DVA.

Retailers’ foreign market exits over time: A strategic management perspective

Foreign divestment research has focused on identifying divestment drivers but has only rarely investigated the long-term divestment behavior of companies. This study uses longitudinal case studies to explore the foreign market exit behavior of all seven of the ten largest store-based retailers in the world that had exited any foreign market between 2005 and 2020. It considers the three main theoretical perspectives in the field of strategic management, i.e., the industry-based, the resource-based, and the institution-based view. We find that retail market exits are often connected actions within certain epochs. The resource-based view seems the most appropriate strategic view to explain retailers’ long-term market exit behavior because their exits are often triggered by their idiosyncratic resources. However, we find some common patterns across the retailers’ market exit behavior that show the relevance of the industry-based and the institution-based view. Furthermore, the study detects the recently increasing phenomenon of partial exits which can be explained by the real options theory.