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A Primer on Basic Concepts in International Economics: Measuring and Classifying Countries and Evaluating Strategies Employed By Companies Engaged In the Global Market

Author

Listed:
  • Richard J. Hunter Jr.

    (Professor of Legal Studies, Seton Hall University, New Jersey)

  • Hector R. Lozada

    (Associate Professor of Marketing, Seton Hall University, New Jersey)

  • John H. Shannon

    (Professor of Legal Studies, Seton Hall University, New Jersey)

Abstract

Gaining an understanding of the basics of international economics plays an important part in developing an effective strategy for successfully penetrating the international or globalized market. In deciding upon an effective strategy for market penetration, a company may be constrained by the policies, laws, or other administrative or regulatory procedures which are in force in the host country. Economic considerations related to income, strategies for market penetration, development indicators, and debt will determine the readiness of countries to accept foreign investment and are critical pieces of the analysis that must be undertaken. In addition, in order to successfully compete in a globalized world, a company must navigate these delicate issues relating to sovereignty that will impact on the decision-making process.In reaching the decision to move outside national borders, a company must exercise sound judgment regarding opportunities and risks associated with the economy of the host nation in order to guaranty the success of a proposed international operation.These measurements, classifications, strategies, and development criteria important in the context of international business are often looked upon as secondary to judging financial or accounting realities. Yet, by taking into account these core definitional concepts in developing an investment strategy, businesses will assure success on a wide variety of fronts.

Suggested Citation

  • Richard J. Hunter Jr. & Hector R. Lozada & John H. Shannon, 2018. "A Primer on Basic Concepts in International Economics: Measuring and Classifying Countries and Evaluating Strategies Employed By Companies Engaged In the Global Market," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 4(5), pages 115-124, 05-2018.
    • Handle: RePEc:arp:ijefrr:2018:p:115-124
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    References listed on IDEAS

    as
    1. Nippa, Michael & Beechler, Schon & Klossek, Andreas, 2007. "Success Factors for Managing International Joint Ventures: A Review and an Integrative Framework," Management and Organization Review, Cambridge University Press, vol. 3(2), pages 277-310, July.
    2. Angus Maddison, 2009. "Measuring The Economic Performance Of Transition Economies: Some Lessons From Chinese Experience," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(s1), pages 423-441, July.
    3. Michael Nippa & Schon Beechler & Andreas Klossek, 2007. "Success Factors for Managing International Joint Ventures: A Review and an Integrative Framework," Management and Organization Review, The International Association for Chinese Management Research, vol. 3(2), pages 277-310, July.
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    More about this item

    Keywords

    Globalization; Sovereignty; Measures of growth; Classifications; Debt; Development.;
    All these keywords.

    JEL classification:

    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts

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