Abstract:This article explores the relevance of different entry modes for Danish exporting small and medium enterprises (SMEs). Internal and external resources that influence the choice of entry modes into the Brazil, Russia, India and China (BRIC) markets are investigated from both a resource-based view (RBV) and a market-based view (MBV). The survey conducted by the University of Southern Denmark in 2012 is based on a sample of 177 Danish SMEs. Our results of this study show that Danish companies entering the BRIC ma… Show more
“…Brazil and South Africa have inflation targeting regimes, while China, India, and Russia operate under different frameworks. (BRICS Report, 2012) Further, China and India are the manufacturing-based economies and big importers, whereas Brazil and Russia are the huge exporters of natural resources (Ulrich, Hollensen & Boyd, 2014).…”
“…Further, China and India are the manufacturing-based economies and big importers, whereas Brazil and Russia are the huge exporters of natural resources (Ulrich, Hollensen & Boyd, 2014).…”
The impact of global financial crisis (GFC) was well pervasive with no exception to Brazil, Russia, India, China and South Africa (BRICS) nations. Banking being the conduit to the market was affected severely in many economies including BRICS, where credit risk emanated from non-performing loans (NPL) was ascribed as the main cause of concern. With the help of The World Bank data set of pre-GFC and post-GFC, this article attempts to look into the credit risk testing practices of BRICS. The Chow’s F-test based on NPL shows no shift in the profitability of banking across all the five economies, whereas a shift in the capital adequacy ratio (CAR) of Russia, India and China in post-crisis years was visible. The BRICS though has different political set-ups follow the international practice of credit risk stress testing for assessing the resilience of their banking sector. Before the crisis, International Monetary Fund (IMF) assessed stress testing for credit risk was in place with BRICS (except India) and currently all the countries are conducting such tests, either independently by their own central banks or with the help of IMF. Bank-specific tests, however, were not found. While India and South Africa are conducting such tests regularly, other three economies are lacking behind. Most of the assessments adopt simulated scenario analysis as well as sensitivity tests for credit risk. While India has been conducting the tests at macro, sector and bank group levels, others are concentrating on macro-level and bank group level. Though variations in selecting variables are found across BRICS, it was found to be very insignificant. The cautions that came along with these tests were mostly found for next 1 to 2 years indicating the test lacuna in predicting bank crisis on a long term.
“…Brazil and South Africa have inflation targeting regimes, while China, India, and Russia operate under different frameworks. (BRICS Report, 2012) Further, China and India are the manufacturing-based economies and big importers, whereas Brazil and Russia are the huge exporters of natural resources (Ulrich, Hollensen & Boyd, 2014).…”
“…Further, China and India are the manufacturing-based economies and big importers, whereas Brazil and Russia are the huge exporters of natural resources (Ulrich, Hollensen & Boyd, 2014).…”
The impact of global financial crisis (GFC) was well pervasive with no exception to Brazil, Russia, India, China and South Africa (BRICS) nations. Banking being the conduit to the market was affected severely in many economies including BRICS, where credit risk emanated from non-performing loans (NPL) was ascribed as the main cause of concern. With the help of The World Bank data set of pre-GFC and post-GFC, this article attempts to look into the credit risk testing practices of BRICS. The Chow’s F-test based on NPL shows no shift in the profitability of banking across all the five economies, whereas a shift in the capital adequacy ratio (CAR) of Russia, India and China in post-crisis years was visible. The BRICS though has different political set-ups follow the international practice of credit risk stress testing for assessing the resilience of their banking sector. Before the crisis, International Monetary Fund (IMF) assessed stress testing for credit risk was in place with BRICS (except India) and currently all the countries are conducting such tests, either independently by their own central banks or with the help of IMF. Bank-specific tests, however, were not found. While India and South Africa are conducting such tests regularly, other three economies are lacking behind. Most of the assessments adopt simulated scenario analysis as well as sensitivity tests for credit risk. While India has been conducting the tests at macro, sector and bank group levels, others are concentrating on macro-level and bank group level. Though variations in selecting variables are found across BRICS, it was found to be very insignificant. The cautions that came along with these tests were mostly found for next 1 to 2 years indicating the test lacuna in predicting bank crisis on a long term.
“…When internationalizing into distant (BRIC) markets, Ulrich et al (2014) found that, control, flexibility and risk were evaluated less important internal factors than personnel and financial resources, while for external factors, the most important was market potential whereas the trade barriers, cultural distance as well as the political and economical risk are viewed as main obstacles. Other aspects such as managerial training, support policies or entrepreneurial culture of the company can also act as facilitators of that decision.…”
Section: Going International: Motivations Location and Modementioning
Orbea is the oldest and biggest bicycle manufacturer in Spain and one of the most recognized bike brands in the world. With more than 175 years in the market, in the year 2007 Orbea decided to set up its third manufacturing plant in the Industrial park of Kunshan. After 8 years with activity there, in 2015 the company decided to close down the factory and reallocated its resources closer to the Headquarters. Some of the reasons that influenced its entry and exit decisions had their origin in the specific context of investment (place): China and the country-of-origin (COO) cluster in Kunshan. Other reasons of the reshoring and backshoring were related with the evolution of the sector, public support services (space) and market positioning in Asia-Pacific. However, as a result of that process, the company has acquired some knowledge and experience that will shape the strategy of Orbea. The objective of this case study is to analyse the role of the place and the space in the international relocation strategy of Orbea. This will involve studying the main decision factors as well as the major organizational adjustments related to the linkage between the structure and the location. The chapter compares the main literature on entry reasons, location mode and offshoring with the interviews conducted to Orbea's managers during the period 2013-2016. This work will guide business practitioners in their international manufacturing strategy and academics to contribute to the study of the advantages generated in specific contexts such as COO clusters.
“…The acquiring company can be easily integrated into the strategy for the region, and could use the existing customer base on which to build. Likewise, Ulrich, Hollensen, and Boyd (), points out that this is not only to reduce the market risks, but more to establish a long‐term business network and sustain the relationship with stakeholders and agents until further decisions of expansion can be made.A business would struggle to work in Brazil without having Brazilians involved in the strategy, who have the knowledge of the local market and the network…”
Brazil is a place for long‐term investments, but it is losing its attractiveness to the foreign market while factors such as location and ease of implementation of the business are the only determinants of the investor. Basic education, political stability, and fiscal reforms have been identified as areas having implications for policy making.
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