1. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 4- 0 Chapter Four Global Market Research

2. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 4- 1 Four Environmental Dimensions to be Researched 1. Physical - climate, topography, space, population density, etc. 2. Sociocultural - social interaction, hierarchies, interdependence, etc. 3. Economic - income, employment, prices, development, etc. 4. Regulatory -government agencies & systems, laws and ordinances, etc.

3. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 4- 2 Special Criteria for Evaluating Country Attractiveness Political Risk Multiproduct Firms Competitive Entry Leading Markets

4. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 4- 3 Political Risk Factors FactorExamples Level 1 - General InstabilityRevolution, External aggression Level 2 - ExpropriationNationalism, Contract revocation Level 3 - OperationsImport restrictions, Local content rules, Taxes, Export requirements Level 4 - FinanceRepatriation restrictions, Exchange rates FactorExamples Level 1 - General InstabilityRevolution, External aggression Level 2 - ExpropriationNationalism, Contract revocation Level 3 - OperationsImport restrictions, Local content rules, Taxes, Export requirements Level 4 - FinanceRepatriation restrictions, Exchange rates

5. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 4- 4 Four Stages of Evaluating Candidates for Foreign Market Entry

6. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 4- 5 Microlog Country Criteria and Stores BelgiumDenmarkGermany Exhibit 4.1 France Source: Adams et al., 1993. Used with permission from Microlog Corporation.

7. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 4- 6 Microlog Country Criteria and Stores Exhibit 4.1 Cont. Source: Adams et al., 1993. Used with permission from Microlog Corporation. Belgium Denmark Germany France

8. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 4- 7 Microlog Country Criteria and Stores Ireland Italy Source: Adams et al., 1993. Used with permission from Microlog Corporation. Exhibit 4.1 Cont. Netherlands Norway

9. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 4- 8 Microlog Country Criteria and Stores Exhibit 4.1 Cont. Ireland Italy Source: Adams et al., 1993. Used with permission from Microlog Corporation. NetherlandsNorway

10. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 4- 9 Microlog Country Criteria and Stores Spain Source: Adams et al., 1993. Used with permission from Microlog Corporation. Exhibit 4.1 Cont. SwedenSwitzerland

11. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 4- 10 Microlog Country Criteria and Stores Exhibit 4.1 Cont. Source: Adams et al., 1993. Used with permission from Microlog Corporation. Spain Sweden Switzerland

12. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 4- 11 Microlog’s Country Clusters Exhibit 4.7 Source: Adams et al., 1993. Used with permission from the Microlog Corporation. 9 10 7 6 5 8 4 3 2 1 0 9 7 6 5 8 43210 Growth potential Competition ITA SPA GER NET BEL FRA DEN SWE NOR SWI IRE Strong competition, high growth potential Weak competition, high growth potential Weak competition, low growth potential Strong competition, low growth potential

13. Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Irwin/McGraw-Hill ©The McGraw-Hill Companies,, Inc., 2000 Slide 4- 12 Yearly Increase in Household Ownership of TV Sets, 1946- 70 Exhibit 4.8 Source: Lindberg, 1982. Adapted with permission. ©1982 by the American Marketing Association. 197019651960195519501946 0 5 10 13 United StatesUnited KingdomGermany,West