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Competitiveness of African Economies: A Case Study on How Small to Medium Enterprises Can Analyze and Select African Countries for FDI
TNC ONLINE   2016-01-01 07:39:42 Author:Van R. Wood and Whitney Harrison Source: Font size:[Large][Middle][Small]
Suggested Citation:  
 Wood, Van R. and Whitney Harrison (2015). Competitiveness of African Economies: A Case Study on How Small to Medium Enterprises Can Analyze and Select African Countries for FDI, Transnational Corporations Review, 7(4):411-424.
 
Transnational Corporations Review
ISSN 1918-6444 (Print), ISSN 1925-2099 (Online)
Edited by Ottawa United Learning Academy
Published by Denfar Transnational Development
Volume 7, Number 4, December 2015, 411-424
DOI:10.5148/tncr.2015.7403

Authors: Van R. Wood and Whitney Harrison

Abstract: This paper overviews a valuable method by which world-wide countries/markets can be analyzed and compared for their relative attractiveness in terms of foreign direct investment (FDI) and international trade. The method is grounded in theory developed by Wood and Robertson in 2000, and is aimed specifically at aiding small and medium sized enterprises (SME) who may find global markets daunting. A case study focusing on a U.S. based SME, which is an alternative energy company investigating Sub-Saharan African market options presented. The paper allows readers to understand why knowledge of a country’s political and legal environment, infrastructure, economic trajectory, cultural realities and market potential are critical for international business success. In particular, SME managers can glean from this work, the importance of viewing multiple dimensions of global business (again, politics, economic, infrastructure, culture, legal systems and market potential), in a theoretically sound framework. The case of Sub-Saharan markets demonstrate how such knowledge can be utilized to systematically and objectively assess which market(s) are the most promising for any company wishing to market any product or service to any country in the world.

Keywords: African economies, SMEs, Competitiveness

Selected References

Ali, Abbas, J. (2000). Globalization of Business: Practice and Theory, International Business Press, Binghamton, New York. 2000.

 

Friedman, Thomas L. (2005). The World is Flat: A Brief History of the Twenty-First Century. Farrar, Straus and Girous, New York, New York. 2005.

 

International Energy Agency (2015). World Energy Outlook 2014: Electricity Database. Information Retrieved March 2015.

 

International Monetary Fund (2015). Countries. Information Retrieved March 2015.  

 

McKinsey Knowledge (2015). Information Retrieved May 2015. http://csi.mckinsey.com/knowledge by region/europe africa milddeleart/African. 

 

Solar Energy Industries Association (2015). http://www.seia.org/research-resources/solar-industry-data. Information Retrieved June 2015. 

 
Transparency International (2014). Corruption Perceptions Index 2014. Information Retrieved March 2015.  
Unicef (2015). Statistics and Monitoring: Country Statistics. Information Retrieved March 2015.  

The World Bank (2015). Data: Indicators. Information Retrieved March 2015.

 

World Freight Rates (2015). Freight calculator. Information Retrieved March 2015. 

 

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