Academic literature on the topic 'Global market expansion'

This paper outlines a rational for assessing the rate of global market expansion by entrepreneurial firms. Many entrepreneurial firms are dependent for their success on global market expansion. This is especially true about firms from relatively small countries. One can conceive of two major and opposing strategies for market expansion: market diversification and market concentration. The first strategy implies a fast penetration into a large number of markets in order to achieve fast growth and a first mover advantage. The second strategy is based on concentration of resources in a few markets and gradual expansion into new territories in order to test the response before committing too much effort. The paper is updating prior work on market expansion, taking into account entrepreneurial firms in the digital age. Firms with digital products don’t have to depend on foreign distribution networks and they have new opportunities for fast entry into foreign markets. We propose a concise framework for determining the preferred rate of market expansion utilizing two key variables: the potential response function of customers and the complexity of the product. The paper include a discussion of ways to assess customers’ response to entrepreneurial innovation and additional factors that can influence the market expansion decision.

Learning outcomes This case will enable students to understand the operations and business model of an international retailer. The case offers enough insights and learning on a retailer who enters a different market and collaborates with the local players to gain market access; and to understand the marketing techniques and strategies of an international retailer to capitalise on market opportunities. Case overview/synopsis The case is about a third largest US-based multinational Costco Wholesale corporation which is a giant retailer. The company operated at 803 locations with a revenue of $166.7bn, which makes it the third largest global retailer in 2020. The case offers comprehensive insight into Costco Wholesale’s business model, distribution strategy, marketing techniques and internationalisation. The authors further discuss that how Costco put forth its model among different range of customers and provided them with high-quality products at a comparatively lower price. The focus of the case is towards the Asian expansion of Costco. In subsequent parts, the strategies and challenges of Costco with respect to its Asian competitors have also been discussed. After generating experience in Asian markets, Costco has considered China as its next destination. The case also discusses the foreign retailers’ success, failure and retail format. Complexity academic level This case is designed for undergraduate and postgraduate classes of management and business administration. Supplementary materials Teaching notes are available for educators only. Subject code CSS 8: Marketing.

Purpose – The purpose of this paper is to model and test the dynamics of home-regional and global penetration by multi-national enterprises (MNEs). Design/methodology/approach – Drawing on international business (IB) theory, the authors model MNEs adjusting their home-regional and global market presence over time. The authors test the resulting hypotheses using sales data from a sample of 220 of the world’s largest MNEs over the period 1995-2005. The authors focus specifically on the relationship between levels of market penetration inside and outside the home region and rates of change in each domain. Findings – The authors demonstrate that MNEs do penetrate both home-regional and global markets, often simultaneously, and that penetration levels often oscillate within an MNE over time. The authors show firms’ rates of regional and global expansion to be affected by their existing regional and global penetration, as well as their interplay. Finally, the authors identify differences in the steady states at which firms stabilize their penetration levels in the home-regional and the global space. The findings broadly confirm the MNE as an interdependent portfolio with important regional demarcations. Originality/value – The authors identify complex interdependencies between home-regional and global penetration and growth, paving the way for further studies of the impact of regions on MNE expansion.

Until recently, there have been limited alternatives and competition to hotels for leisure or business travelers who are looking for long term accommodation. Increased globalization of businesses and changing work practices are requiring business professionals to carry out their work away from home on a short to medium basis. Serviced apartments have grown in popularity as they do offer a different concept in alternative accommodation. What is presented as the most interesting element about this concept to investors is how it differs from hotel accommodation in terms of their product offering, the valuation considerations as well as their investment criteria. The paper seeks to examine the history and development serviced apartments in the various regions of the world and how the investments in this new sector has evolved in the creation of a whole new market. The article will present the argument that the innovation and expansion of the serviced apartment sector has boosted profitability, demand profile and competition in the accommodation market.

AbstractStates with large markets routinely compete with one another to shield domestic regulatory policies from global pressure, export their rules to other jurisdictions, and provide their firms with competitive advantages. Most arguments about market power tend to operationalize the concept in economic terms. In this paper, we argue that a state's ability to leverage or block these adjustment pressures is not only conditioned by their relative economic position but also by the political institutions that govern their markets. Specifically, we expect that where a state chooses to draw jurisdictional boundaries over markets directly shapes its global influence. When a state expands its jurisdiction, harmonizing rules across otherwise distinct subnational or national markets, for example, it can curtail a rival's authority. We test the theory by assessing how changes in internal governance within the European Union altered firm behavior in response to US extraterritorial pressure. Empirically, we examine foreign firm delisting decisions from US stock markets after the adoption of the Sarbanes–Oxley accounting legislation. The act, which included an exogenous compliance shock, follows the harmonization of stock market governance across various European jurisdictions. Econometric analysis of firm-level data illustrates that EU-based companies, which benefited from jurisdictional expansion, were substantially more likely to leave the American market and avoid adjustment pressures. Our findings contribute to debates on the role of political institutions in economic statecraft and suggest the conditions under which future regulatory conflicts will arise between status quo and rising economic powers.

Previous approaches to portfolio analysis in international markets focused on the country as the basic portfolio unit and relied on an assessment of market attractiveness and competitive strength to determine how to allocate resources. This article proposes an approach to international portfolio analysis based on an examination of the interconnectedness of geographic markets and product businesses. This enables management to identify strategic portfolio units (SPUs) based on market interconnectedness, as well as competitive strength, and market attractiveness. SPUs incorporating market interconnectedness enable management to establish directions for future growth and determine how expansion or retraction of the portfolio in a given direction impacts other portfolio units. Opportunities to leverage core competencies across portfolio units in international markets and to reconfigure portfolio units and operations so as to achieve greater synergies can also be identified.

Korean fashion firms face difficulties in sustaining their growth momentum because of market stagnation and the aggressive entry of global luxury and SPA brands. To find a breakthrough, local fashion firms are adopting diverse strategies, including direct entry, licensing, and acquisitions, to successfully tap into the global market. Kolon FnC, which is among the five affiliates of Kolon Industries, focuses its business in the production and sales of fashion goods and clothing lines. Focusing on its strength as a leading brand power in the sports and outdoor segment, Kolon FnC is making strategic moves, such as diversifying its fashion portfolio, creating new value by collaborating with artists, and enhancing its R&D capability for new garment materials, which is led by one of its sister affiliates, Kolon Fashion Material. Under the leadership of the newly appointed CEO Dong-Mun Park, Kolon FnC is aggressively seeking talented young designers in Korea to differentiate itself from its global competitors. CEO Park strongly believes that talented young Korean designers can be a viable source of competitive advantage against global competitors. Since 2010, Kolon FnC has acquired several small-sized designer shops and fashion accessory shops to diversify its fashion portfolio and to create a young and vibrant brand image. This approach marks a departure from the strategic paths of its major local competitors, as Korean fashion firms typically focus on licensing or acquiring foreign brands. This case aims to identify the practical implications of global expansion strategies by analyzing how the Korean fashion industry has evolved and how Kolon FnC and its competitors have deployed different global expansion strategies in developing their resources and/or capabilities for future growth.

Purpose: To entering into the international market successfully, the company ought to do all-round and in-depth research. This paper aims to study the process of Walmart’s global expansion and find the solutions to solve the relevant risks. Design/Methodology/Approach: In-depth interviews with 5 persons were conducted to collect their rankings of social media sites and the reasons for visiting each of the sites.

Using the example of print outsourcing, the article examines the problems of analyzing and forecasting markets that significantly depend on the global players' behaviour. At the same time provisions of the economic domination theory allow, through highlighting the typical strategies of market participants, to identify a number of new trends emerging in the market and opening up for Russian companies. First of all, they have to do with such processes as transition to electronic document management, expansion of the sphere of product labeling and traceability systems. In addition, the 2020 crisis has resulted in creation of a new demand for organizing home workplaces, changing the requirements for IT systems architecture in large offices. Based on the case studies of the companies that are present on the market, the author draws up conclusions on notable changes in the role of large Russian companies in this market, including under the impact of transformations on the related markets.

Rural areas in much of sub-Saharan Africa access needed health care from untrained and often poorly regulated drug vendor shops with concerns over the quality of products and services provided and their public health implications. The thesis undertook to understand market relationships in a rural retail drug market in the light of the structure-conduct-performance paradigm and isolate opportunities for potential policy interventions for improved access to quality and safer medicines. Data was collected from a sample of patent medicine vendors and drug purchasers in Katsina-Ala Local Government Area of Benue State, north central Nigeria, over 9 months in 2012. Information from drug vendors and drug consumers was generated through semi-structured questionnaires, in-depth interviews and systematic business transaction observations. Key state and national drug regulatory officials were also interviewed in-depth and related documentary data collected and evaluated. Data analysis focussed mainly on the relationships between market structure, provider conduct, consumer behaviour and the nature of regulation, with the aim of understanding market performance in relation to access to medicines and their rational use. The study established that patent medicine vendors were an important source of medicines for inhabitants of the local government for ambulatory primary health care. Drug retailers were said to be a reliable source of a wide range of drugs provided at relatively more affordable prices and in a convenient way that satisfied consumer expectations. However, a number of market failures existed: low quality of treatment due to poor provider knowledge of diseases and drugs and therefore inappropriate prescription and dispensing practices. Ineffective regulation was also demonstrated by way of inappropriate and inadequate regulatory regime, occasioned by wide spread regulatory infractions. To attain the desirable public health objective of sustained improvement in the quality of products and services obtainable at patent medicine vendor outlets, regulatory strategies must be contextually relevant, providers must be trained and offered financial and business incentives and consumers must be empowered by accessible and timely health information for informed choices against the backdrop of strengthened and better incentivized inspectorate unit in a systematically intertwined approach.

This research examines the determinants of global market formation and expansion using the case of fair trade from its origins as a market based on idiosyncratic and informal direct sales networks to its formalization as a rationalized governance system. Fair trade is a central component of a growing field of markets based on the social and environmental conditions of production. Fair trade organizations establish and enforce alternative standards of production and distribution processes globally and provide the infrastructure for a market in which value lies in a product's utility and conditions of production. The market spans the globe with producer organizations located in the global South and consumer organizations located in the global North. In three empirical chapters, I test which social forces enable and constrain the formation and expansion of the fair trade market and how the effects of those forces change with changes in the organizational structure of the market. Using an original dataset of all fair trade organizations, I examine (1) the expansion of the global fair trade market from 1961 to 2006, (2) the uneven formation and expansion of fair trade production across the global South from 1970 to 2010, and (3) the spread of consumer markets for fair trade goods across the global North from 1970 to 2010. I employ time series and panel multivariate regression techniques along with qualitative comparative analyses. Overall, I find strong evidence for the institutional foundations of global markets where national connections to global institutions and the reorganization of market relations enable global markets.

The purpose of the research is to assess if the franchising conceptual model is an applicable model for the HWP international market expansion in China.  The assessment will be carried out through the extensive investigations into SSAB/HWP internal and external forces including transfer of knowledge in the MNC, position building in business networks, products positioning and sales situation on the Chinese market to define the risk and opportunity.  As well as the theories of the internationalization, marketing strategy and models will be referred to evaluate the franchising model, which can be adopted in China. The research questions are how can the franchising concept be adopted as an applicable model for the Hardox Wearparts international market expansion in China?  What are the appropriate suggestions for the improvements to the further implementation of the model? By adopting four research methods of qualitative research strategy, a multidimensional purpose of the research has been conducted in order to gather first-hand data, study a specific case and investigate the multidimensional environments for the implementation of the HWP international market expansion model.  The main research methods include 1) questionnaire & survey, 2) qualitative interviewing, 3) observation, and 4) collection and qualitative analysis of texts, document, e- research materials and data. The conclusion of the research is that there are several internal- and external factors, which have affected the HWP´s market expansion in China negatively during the year.  It is a sensible decision to emphasize China as a single largest market for the HWP business development. The market seeking strategy by the infusion of the franchising concept is an appropriate decision for the HWP market expansion in China.  The conceptual franchising model by SSAB is appropriate to both the theoretical model and Chinese regulation on the franchises.  However, to implement this franchising model in China, it requires several significant improvements on those four key components/success factors which are 1) internationalization entry model, 2) transfer of knowledge within the MNC, 3) learning in the foreign market network, and 4) position-building in the business networks.   Together with the improvements on four key components/success factors, the franchising concept will be an applicable model for the HWP international market expansion in China.

Thesis (MBA)--University of Stellenbosch, 2009.
ENGLISH ABSTRACT: The research report entailed an investigation into the impact of the historical evolution of SABMiller's corporate strategy on its global expansion, particularly into emerging markets. To this end, the demands of a rapidly changing global world on strategy and the relevance and growing importance of emerging markets to organisations were explored. This entailed amongst others an examination of the considerations when expanding into emerging markets, their characteristics and challenges posed. It was found that in the modern business world, which is characterised by speed, uncertainty and turbulence, strategy implementation and evaluation are as important as strategy formulation. It is vital that an organisation is flexible enough to change its strategic course if necessary and is able to set stretch objectives in order to become more inventive and exhibit more urgency in improving its performance. Today's dynamic environment requires a revitalised approach to strategic thinking and organisations may have to develop new strategic capabilities and cultivate strategic resilience in order to successfully navigate the challenges they face. Increased turbulence and uncertainty are not only characteristics of the global business environment, but in many cases these circumstances are exacerbated in emerging markets. Emerging markets may very well require of organisations to be even more innovative and expand their strategic capabilities, but it was also shown that these markets are becoming increasingly important to organisations. The reasons for a shift in perspectives on emerging markets are varied, including that these markets are no longer regarded as posing an unacceptably high risk, that they offer large markets with high population growth figures and that they often record much higher economic growth figures than mature and saturated markets in developed countries. Data confirms that the economic output of emerging markets as a percentage of global output is steadily increasing, their share of world export is growing and they are major oil consumers. The fast growth of these markets, combined with the potential offered by their size, have led to forecasts that a key group of emerging markets will become the drivers of organisational growth in the foreseeable future. An overview of the factors to be taken into consideration when expanding into emerging markets as well as the implications of expansion shows that organisations are required to be creative and re-assess their own strengths and weaknesses in order to expand their strategic capabilities to be in line with the proposed expansion. Based on a literature review and an examination of case studies of the experiences of organisations which have expanded into emerging markets, a number of findings were made regarding important aspects to concentrate on, best practices and mistakes to avoid when entering emerging markets. This model for success was applied to SABMiller in order to extract lessons learnt from the company's expansion into emerging markets. An analysis of SABMiller's history, its global expansion and its strategy helped provide a picture of how the company evolved and how it thinks and operates. It was found that by the end of the 1980s the company had developed a number of core competencies and strategic capabilities in South Africa that were geared towards expansion in emerging markets. These capabilities included that it understood conditions in emerging markets and was able to deliver high quality and low cost products under particular conditions. Its managers had a "can do"-attitude and the ability to deal with diverse cultures. A number of findings were made on the basis of the analysis of interviews conducted with senior managers at SAB Miller that can be used as general lessons for expansion into emerging markets. These can be grouped into the four themes also used to model the recommendations for success in emerging markets drawn from literature and case studies. Firstly, from an operational point of view, SABMiller developed a number of best practices for operational excellence that were implemented during its expansion. These practices did, however, not become codified or prescriptive to the extent that they restrict local managers and could not be adapted to local circumstances. The best practices were rather used to create an environment which encouraged a quest for the achievement of excellence in collaboration with local expertise. The company gave its managers support in terms of expertise, but also allowed them freedom of action and allowed them to translate best practices into the correct application for a particular context. SABMiller was hungry for opportunities, willing to make mistakes and learn lessons and its business model was flexible enough to allow it to operate under emerging market conditions that presented obstacles to many Western organisations. Secondly, in terms of finances and resources, the company found that even though there might be less information or data available about local markets, it was able to analyse the information with its own tools and based on its own experiences, which made it more valuable. SABMilier also did not apply a generalised approach to emerging markets, but recognised the potential of smaller markets. It was willing to apply custom-made approaches to local markets and was able to craft fit for purpose-solutions based on an understanding that the underlying economic fundamentals underlying emerging markets are different to those in Western markets. It applied financial rigour and built a reputation as an ethical operator focussed on growing sustainable businesses, yet its managers were still comfortable with making gut-feel decisions because they had a good understanding of commercial relationships and economic fundamentals. Thirdly, as far as management lessons were concerned, SABMiller developed a nimble and efficient operating model that gave its leaders the necessary flexibility to make fast strategic moves. The company went looking for opportunities in emerging markets, rather than having a business model that required a market which had to be big enough to sustain a Western way of working. In addition to this, its multi-dimensional approach to operating and setting targets enabled it to seize opportunities where others couldn't, as it was willing to act as local operators, be joint-venture partners or even minority stakeholders. Its view of the beer business as a local business and its practice of executing everything it did in a locally relevant way is a thread that runs through the company's entire approach, regardless of which market it operates in. Fourthly, its leadership and people can be highlighted as one of the most important factors in SABMiller's successful expansion into emerging markets. The company's top leadership displayed exceptional intellectual and emotional intelligence and an absolute commitment to its expansion. The corporate culture, which emphasises personal responsibility, decentralisation, empowerment and a commitment to fair and sustainable business, can be regarded as critical to the company's success. In emerging markets, partnerships with local operators were built on shared learning and experiences, humility and friendship. The senior managers at SABMiller deployed in these markets instilled trust and credibility and were able to navigate difficult circumstances with sensitivity and diplomacy. SABMiller's employees also displayed a number of traits referred to as the South African DNA. These include resourcefulness, tenacity, a pioneering spirit, the inability to see problems, an ability to look for ingenious solutions and a flair for working with diverse people. As the company had recruited against these traits, it had an abundance of creative, inventive and very determined employees in its arsenal when it started to expand, and the skills of its people gave SABMiller one of its most enduring advantages. Based on the research findings, a number of recommendations are made for the further development of organisational tools and methods, as well as further study and investigation. These include that processes be developed to help organisations re-align or expand their strategic capabilities to be in line with an expansion into emerging markets and that the alignment of strategy with emerging markets be studied further. It is also recommended that more research be done to explore the conditions in emerging markets in order to broaden the field of knowledge on experiences in emerging markets. The characteristics and abilities that are necessary for an organisation to remain locally relevant should be investigated further. Finally, the link between the emerging market roots of an organisation and its actions upon expanding should be studied more extensively in order to extract and quantify lessons and best practices.
AFRIKAANSE OPSOMMING: Die navorsingsverslag het 'n ondersoek behels na die impak van die historiese evolusie van SABMilier se korporatiewe strategie op die maatskappy se globale uitbreiding, spesifiek in ontluikende markte. Met die doel in gedagte is die vereistes wat 'n snel veranderende globale wereld aan strategie stel en die relevansie en toenemende belangrikheid van ontluikende markte vir organisasies bestudeer. Dit het onder andere 'n studie van die faktore wat in ag geneem moet word wanneer uitgebrei word na ontluikende markte, hul karaktereienskappe en die uitdagings in die markte ingesluit. Daar is bevind dat die implementering van strategie in die moderne sakewereld, wat gekenmerk word deur spoed, onsekerheid en ontstuimigheid, net so belangrik is soos die formulering van strategie. Dit is noodsaaklik dat 'n organisasie soepel genoeg is om, indien nodig, sy strategiese koers te verander. Die organisasie moet ook in staat wees om grensverskuiwende doelwitte te stel sodat hy meer innoverend kan word en sy prestasie met meer dringendheid verbeter. Die hedendaagse dinamiese omgewing vereis 'n hersiene benadering tot strategiese denke en dit mag nodig wees vir organisasies om nuwe strategiese vaardighede en strategiese veerkragtigheid te ontwikkel om hulle in staat te stel om uitdagings te bowe te kom. Meer ontstuimigheid en onsekerheid is nie net kenmerkend van die globale sakeomgewing nie, maar is ook in baie gevalle in 'n erger graad in ontluikende markte teenwoordig. Dit mag vir organisasies nodig wees om in ontluikende markte selfs meer innoverend te wees en hulle strategiese vaardighede uit te brei, maar selfs te midde van die uitdagings word ontluikende markte vir organisasies al hoe meer belangrik. Daar is 'n verskeidenheid redes vir die verandering in persepsies oor ontluikende markte, insluitend dat die markte nie meer beskou word as markte wat onaanvaarbare hoe risiko's inhou nie. Verder bied ontluikende lande groot markte met snelgroeiende bevolkingsyfers en baie vinniger ekonomiese groei as die volwasse en versadigde ekonomiee in ontwikkelde lande. Data bevestig verder dat die ekonomiese uitset van ontluikende markte as 'n persentasie van globale uitset besig is om te styg, dat hulle aandeel van wereldwye uitvoer toeneem en dat hulle groot verbruikers van olie is. Die vinnige groei in die markte, gesien saam met die potensiaal opgesluit in hul grootte, het gelei tot vooruitskattings dat 'n sleutelgroep ontluikende lande in die afsienbare toekoms die enjins van organisatoriese groei gaan word. 'n Oorsig van die faktore wat in ag geneem moet word wanneer uitgebrei word na ontluikende markte en die implikasies van uitbreiding dui daarop dat organisasies kreatief te werk sal moet gaan en hul eie sterkpunte en swakhede sal moet heroorweeg om te sorg dat hulle strategiese vermoens in pas is met die beoogde uitbreiding. Op grond van 'n literatuurstudie en 'n ontleding van gevallestudies is 'n aantal bevindings gemaak aangaande belangrike aspekte waarop gefokus moet word, beste praktyke en foute wat vermy moet word wanneer uitgebrei word na ontluikende markte. Die model vir sukses is op SABMiller toegepas met die oog daarop om lesse te kan leer uit die maatskappy se uitbreiding. 'n Ontleding van SABMiller se geskiedenis, die maatskappy se globale uitbreiding en sy strategie het bygedra daartoe om 'n prentjie te skets van hoe die maatskappy ontwikkel het, hoe hy dink en hoe hy te werk gaan. Daar is bevind dat die maatskappy teen die einde van die 1980s in Suid-Afrika 'n aantal strategiese vermoens en sleutelbevoegdhede ontwikkel het wat hom goed geposisioneer het vir uitbreiding na ontluikende markte. Die vermoens het ingesluit dat die maatskappy omstandighede in ontluikende markte goed verstaan het en in staat was om onder die besondere omstandighede produkte van hoe kwaliteit en teen 'n lae koste te lewer. Die maatskappy se bestuurders het 'n houding gehad dat alles moontlik is en kon met diverse kulture saamwerk. 'n Aantal bevindings wat gebruik kan word as algemene lesse vir uitbreiding na ontluikende markte is gemaak op grond van 'n ontleding van onderhoude wat gevoer is met senior bestuurders van SABMiller. Die bevindings kan in vier temas gegroepeer word wat ooreenstem met die model vir sukses wat ontwikkel is op grond van die literatuurstudie en ontleding van gevallestudies. Eerstens, uit 'n operasionele oogpunt gesien, het SABMiller 'n aantal beste praktyke vir operasionele uitnemendheid ontwikkel wat toegepas is in die uitbreidingsproses. Die praktyke is egter nie tot so 'n mate gekodifiseer of voorskriftelik gemaak dat dit plaaslike bestuurders aan bande gele het nie. Die beste praktyke is gebruik om 'n omgewing te skep wat die behaling van uitnemendheid in samehang met plaaslike kenners aangemoedig het. Die maatskappy het sy bestuurders die nodige ondersteuning in terme van kennis gegee, maar hulle ook die vryheid gegee om beste praktyke op die mees toepaslike manier vir die plaaslike omstandighede toe te pas. SABMiller was honger vir geleenthede en bereid om foute te maak, en die maatskappy se sakemodel was soepel genoeg dat hy kon funksioneer onder omstandighede in ontluikende markte wat vir baie Westerse organisasies 'n struikelblok was. Tweedens, in terme van finansies en hulpbronne, het die maatskappy gevind dat daar wel minder inligting beskikbaar was oor plaaslike markte, maar hy kon sy eie vaardighede en kennis gebruik om die inligting te ontleed, wat dit meer waardevol gemaak het. SABMiller het ook nie 'n veralgemenende benadering tot ontluikende markte gehad nie, en hy kon die potensiaal in kleiner markte raaksien. Die maatskappy was bereid om doelgemaakte benaderings tot plaaslike markte te gebruik en spesifieke oplossings vir bepaalde omstandighede te ontwikkel. Die oplossings was gegrond op 'n begrip dat die onderliggende ekonomiese beginsels in ontluikende markte verskil van die in Westerse markte. Derdens, wat lesse ten opsigte van bestuursvaardighede aanbetref, het SABMiller 'n rats, snelvoetige en doeltreffende bedryfsmodel ontwikkel wat die nodige ruimte geskep het vir sy leiers om vinnige strategiese skuiwe te kan maak. Die maatskappy het vir geleenthede in ontluikende markte gaan soek, in teenstelling met Westerse organisasies wat net hul sake in markte kon bedryf wat groot genoeg was om hulle Westerse werkswyse te ondersteun. Verder het die maatskappy 'n meerdimensionele werkswyse en benadering tot die stel van doelwitte, wat beteken dat hy geleenthede kon aangryp waar ander dit nie kon doen nie. Dit is onder andere moontlik gemaak omdat hy bereid was om as 'n plaaslike operateur, gesamentlike ondernemingsvennoot of selfs minderheidsaandeelhouer te werk. Vierdens kan sy leierskap en mense uitgelig word as een van die mees belangrike faktore wat bygedra het tot SABMilier se suksesvolle uitbreiding na ontluikende markte. Die maatskappy se top-bestuurslui het uitsonderlike inlellektuele en emosionele intelligensie aan die dag gele en was absoluut verbind tot die uitbreiding. Die korporatiewe kultuur, wat klem lê op persoonlike verantwoordelikheid, bemagtiging en 'n toewyding tot regverdige en volhoubare sakepraktyke, kan beskou word as 'n sleutelfaktor in die maatskappy se sukses. In ontluikende markte is vennootskappe gegrond op gedeelde ervaring en lesse wat geleer is, nederigheid en vriendskap. Die senior bestuurders wat SABMilier na ontluikende markte gestuur het was geloofwaardig en het vertroue ingeboesem, en hulle kon moeilike omstandighede met die nodige sensitiwiteit en diplomasie hanteer. SABMiller se werknemers het ook 'n aantal eienskappe aan die dag gele wat beskryf word as 'n Suid-Afrikaanse DNS. Die eienskappe het ingesluit vindingrykheid, deursettingsvermoe, 'n ontdekkingsgees, die onvermoe om probleme te sien, die vermoe om vernuftige oplossings te vind en 'n besondere aanleg om met uiteenlopende mense te werk. Die maatskappy het ook werknemers met die soort profiele gewerf, en het hy het dus ten tye van sy uitbreiding 'n arsenaal kreatiewe, innoverende en uiters vasbeslote werknemers gehad as een van sy mees blywende voordele. Op grond van die bevindings in die verslag word 'n aantal aanbevelings gemaak ten opsigte van die ontwikkeling van hulpbronne vir maatskappye en areas wat verder ondersoek en bestudeer kan word. Dit sluit in dat prosesse ontwikkel word om organisasies te help om hul strategiese vaardighede aan te pas by uitbreiding na ontluikende markte en dat die rig van strategie op ontluikende markte verder ondersoek word. Dit word ook aanbeveel dat verdere navorsing gedoen word oor die omstandighede in ontluikende markte om die kennisveld oor organisasies se ervarings in ontluikende markte uit te brei. In die laaste instansie moet die eienskappe en vaardighede wat organisasies nodig het om plaaslik relevant te bly, verder bestudeer word. Die verband tussen die historiese wortels van 'n organisasie in 'n ontluikende mark en die organisasie se optrede wanneer hy uitbrei moet ook verder ondersoek word om lesse en beste praktyke te formuleer.

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Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)
Coordenação de Aperfeiçoamento de Pessoal de Nível Superior (CAPES)
O presente trabalho analisa o desenvolvimento e a especialização na agroindústria do município de Uberlândia, Minas Gerais, assim como o papel desempenhado pelas grandes empresas processadoras e exportadoras de soja, couros e carnes, na articulação local ao mercado globalizado de commodities. A atividade agroindustrial desenvolveu-se desde fins do século XIX, a partir de fatores endógenos tais como: tradição agropecuária, posição geográfica favorável, e infraestrutura de transportes, aos quais vieram associar-se, por volta dos anos 1970, fatores exógenos à área, especialmente políticas federais de incentivo à modernização agrícola e à instalação de empresas agroindustriais em áreas de cerrado. Tal processo desenvolveu-se sob a ação do Estado, num contexto de forte expansão capitalista do espaço brasileiro, na qual alguns locais foram privilegiados, como Uberlândia. No período pós-1970, a referida atividade conheceu uma intensa expansão e especialização, haja vista os investimentos que o município passou a receber de grandes grupos empresariais, particularmente os vinculados ao processamento de soja, de carnes e de couros. O destaque destas empresas se deve não somente ao fato de comporem grandes unidades industriais, mas, sobretudo, por pertencerem a ramos vinculados ao agronegócio e à importância que este assumiu na economia brasileira, desde a década de 2000, com a inserção do Brasil no mercado globalizado de commodities. A partir de então, os produtos do chamado complexo soja constituem-se no principal item de exportação do país, cabendo ao complexo de carnes a segunda colocação, e ao segmento de couros também uma participação importante na pauta exportadora nacional. Esse panorama refletiu a conjuntura internacional da aludida década, de ativação da demanda por commodities agrícolas e agroindustriais, com consequente alta de seus preços, impulsionada principalmente pela entrada da China no comércio mundial, ao lado de políticas nacionais de estímulo ao agronegócio. Neste contexto, localidades, a exemplo de Uberlândia, têm participado da divisão territorial do trabalho, através da produção e comercialização de commodities primárias e semimanufaturadas. Para a análise do município em foco, adotou-se como procedimentos o levantamento de informações dos estabelecimentos agroindustriais situados no espaço local, que permitissem avaliar sua atuação no comércio de commodities, e de dados referentes à pauta exportadora e aos países de destino das exportações do município, no período de 2000 a 2014. Mediante a pesquisa, constatou-se que Uberlândia articula-se à esfera internacional através das exportações de gêneros básicos e semimanufaturados, sendo que os produtos do complexo soja, de carnes e de couros prevalecem na pauta exportadora do município, destinando-se a vários países e continentes. Assim, comprovou-se articulação de Uberlândia ao comércio globalizado de commodities, bem como o estreitamento das relações comerciais com o mercado asiático, principalmente com a China. Por fim, em face da atual crise econômica nacional e da própria conjuntura internacional (quanto à demanda e valorização de commodities), supõe-se que os gêneros primários não deixarão de compor a pauta exportadora brasileira e uberlandense. Contudo, num cenário talvez menos favorável às exportações, diverso daquele que vigorou até recentemente.
The present work analyzes the development and specialization in agribusiness in the municipality of Uberlândia, Minas Gerais, as well as the role played by the big processing companies and exporters of soybeans, hides and meat, local joint to the globalized market of commodities. The agro-industrial activity has developed since the late 19th century, from endogenous factors such as: agricultural tradition, favourable geographical position and transport infrastructure, which came to associate around the years 1970, exogenous factors to the area, especially federal policies to promote agricultural modernization and installation of agro-industrial companies in areas of cerrado. This process developed under the action of the Nation, in a context of strong capitalist expansion of Brazilian space, in which some sites were privileged as Uberlândia. In the post-1970 period, this activity met an intense expansion and specialization, due to investments that the municipality began to receive from large business groups, particularly those linked to soy processing, meat and hides. The highlight of these companies is due not only to the fact of large industrial units build, but, above all, for they belong to branches linked to agribusiness and the importance that this assumed in the brazilian economy, since the 2000, with Brazil's insertion into the globalized market of commodities. From then on, the products of the so-called soybean complex constitute the main export item of the country, and the complex of the meats, and segment of hides a major stake in national export tariff. This reflected the international conjuncture panorama of this decade, activation of demand for agricultural commodities and agro-industrial, with consequent high prices, driven mainly by the entry of China in world trade, alongside national policies to stimulate agribusiness. In this context, localities, following the example of Uberlândia, have participated in the territorial division of labour, through the production and marketing of primary commodities and semi manufactured. For the analysis of the municipality in focus, adopted as information collection procedures of the agro-industrial establishments situated in the local space, by the assess its performance in trade in commodities, and export tariff data and the countries of destination of exports of the municipality, in the period from 2000 to 2014. Through the research, it was found that Uberlândia articulates the international sphere through the basic genres and semimanufactured goods exports, and soy complex products, meat and hides prevail in the municipality's export tariff for various countries and continents. So, it is articulation of Uberlândia to globalized trade of commodities, as well as the strengthening of trade relations with the Asian market, especially China. Finally, in the face of the current national economic crisis and the international situation (as the demand and value of commodities), it is assumed that the primary genres will compose the brazilian export tariff and uberlandense. However, maybe in a context less favourable to export, diferent than it ran recently.
CNPq: 165502/2014-2

碩士
靜宜大學
國際碩士學位學程
104
The thesis deals with the key drivers for successful international expansion, which is the planned expansion of a company´s business activity into countries in several regions throughout the world. In addition a suitable global expansion strategy for the Taiwanese bake ware producer San Neng is formed and the target market Germany analysed in order to give the company a closer look into the German baking industry, baking culture, and customer preferences. San Neng Bake Ware Corporation was founded 1976 and is the leading designer, manufacturer and supplier of professional bake ware, display items as well as innovative tools in the Asian baking industry. Moreover, with a wide range of more than 2000 different products and an international quality certification, the company is getting bigger and stronger. The in depth market analysis is the first and most important step in the global expansion strategy and decides whether a company can expand successfully. Using an actual case study is the perfect way of showing how specific movements in international business work in real life and what kind of challenges the company might face and how these challenges the business can overcome. The aim of the thesis is to support San Neng Company with useful information about the country Germany and its culture to ensure a successful future expansion, which can help the company getting access to a new market and customers, reducing costs and provide a robust pipeline to fuel the company´s future growth. In order to successfully expand into a foreign market, San Neng has to overcome a number of challenges including the language barrier, the different culture and country specific regulations, because companies often underestimate the resources and investment required to cope with these barriers.

碩士
國立高雄第一科技大學
國際管理碩士學位學程
101
This study aimed to the key factors in the event of global market expansion, and focused on creative industries in Taiwan. The method of grounded theory was adopted with three case studies conducted mainly by semi-structured interviews. There are other methods used to collect secondary data, such as filed observation and collecting archival materials. Three case studies were analyzed separately, then generated some concepts in common. The model of global market expansion is contributed from three dimensions: design, production and marketing. Three elements are correlated with each other and cycle to produce the power of launching private brand into global market. The discussion of nation branding in relation with creative industries in Taiwan has taken place. Government policy can be the accelerator to nation branding which establishes the image of a country, based on its culture. In some cases, nation branding could benefit certain products or industries in a country.

Internationalization is an old but ever charming topic. Driven by multiple motives, companies expand themselves in countries outside their home markets via various modes of entry and expansion. Under whatever mode, results are mixed with the good and bad. In cross-border M&A in China, this turns out to be extremely true as risks can arise from every aspect, especially cultural differences. This case study with pedagogical notes explores the factors affecting international expansion, the determinants for choosing market entry/expansion mode, the M&A process and risks frequently made, and the challenges in post-merger M&A integration and management. It focuses on related issues and topics on the cross-border M&A between Pearson, a big British international publishing and educational company, and GEDU, a small Chinese company. Building on international business, this case analyzes the process of international expansion and its risks, which presents: 1) the proactive and reactive reasons for going international expansion; 2) the entry and expansion choices; 3) the external and internal factors influencing decision-making; 4) M&A process and risks; and 5) post-M&A risks/challenges in China. Also, the role of culture in cross-border M&A in China is discussed. The case design and analysis of such a case aims to present a general framework about internationalization, market entry and expansion modes, benefits and challenges in choosing different modes; moreover, by selecting one specific foreign operation mode: cross-border M&A, it explores its risks and downfalls in international management in China.
A internacionalização é um tópico antigo, mas sempre charmoso. Impulsionado por múltiplos motivos, as empresas expandem-se em países fora de seus mercados domésticos por meio de vários modos estrangeiros de entrada e expansão. Em qualquer modo, os resultados são misturados com o bom e o mau. Em cross-border M&A na China, isso se mostra extremamente verdadeiro, pois os riscos podem levantar-se de todos os aspectos, especialmente da diferença cultural. Este caso com notas pedagógicas explora os fatores que afetam a expansão internacional, os determinantes escolhendo o modo de entrada / expansão do mercado, o processo de M&A e os riscos feitos, com frequência, e os desafios na integração e gestão de M&A. Concentra-se em questões e tópicos relacionados sobre cross-border M&A entre a Pearson, uma grande empresa britânica de publicação internacional e educacional, e a GEDU, uma pequena empresa chinesa desalistada. Com base em negócios internacionais, este caso analisa o processo de expansão e riscos internacionais, que apresenta: 1) as razões pró-ativas e reativas para a expansão internacional; 2) as escolhas de entrada e expansão; 3) os fatores externos e internos que influenciam a tomada de decisões; 4) processo e riscos de M&A; 5) riscos / desafios de post-M&A na China. Além disso, o papel da cultura em cross-border M&A na China é discutido. A concepção e a análise que utilizam esse caso visam apresentar um quadro geral sobre a internacionalização, modos de entrada e expansão no mercado, benefícios e desafios na escolha de diferentes modos; além disso, selecionando um modo específico de operação estrangeira: cross-border M&A, que explora seus riscos e quedas na gestão internacional na China.

The monograph, based on the identification of trends and problems of changes in the demand and supply of skills, as well as the study of modern mechanisms of their formation and actualization, substantiates the priority areas of human resources development in the Russian Federation that meet the strategic challenges of the period of digital transformation of the labor sphere. The authors identify and systematize current and future trends related to changes in the demand for professions and skills in the Russian and global labor markets. The directions of transformation of the demand for skills and professions in the conditions of digitalization of the economy, skills and professions of the future are determined. Quantitative and qualitative imbalances and trends in labor supply and demand in the Russian labor market are identified (based on statistical analysis of data from 2009-2019). The features and problems of supply and demand of professions/skills in the segments of the Russian labor market covered by Internet recruitment are identified (based on data from resume parsing and vacancies of Internet recruitment portals in 2018 and 2020). Methodological approaches to identifying widely-and poorly-demanded skills are proposed and tested during the competence analysis of labor supply and demand using Big Data technologies.the competence profile of the vacancies of the professional core and extra - skills. An innovative author's approach to assessing the potential of skills capitalization — a possible increase in the salary of an applicant due to the expansion of the set of skills that he has-is proposed and tested. The current policy directions of formation and improvement of skills of the population in the Russian Federation are identified and systematized. The strategic challenges of the period of digital transformation of the labor sphere facing the Russian Federation and the priority areas of human resources development that meet these challenges are identified. The conclusions and recommendations can be used in the work of the Ministry of Labor of Russia, Rostrud, the Ministry of Education and Science of Russia, the Ministry of Education of Russia, government authorities, employment services of the Russian regions, as well as organizations of the professional education system.

This work unveils the composition, the structure, the expansions, the tensions, asymmetries, fights and ways of political-professional recognization of workers' culture in Brazil, having as specificity, the musical language considered independent. The cultural work, the artistic creation activities and the technical and technologic process associated to it are in the center of the capitalism transformation in the last times, whose ambiguities integrate the new global chains of specialized symbolic services and the transnational industries. Behind the expansion of the global cultural markets, there is the creation of symbolic-economic value propitiated through the art and culture´s fieldwork. Looking at the professional category of art, through a work's parameter contributes to reveal the reality of an area that has not been studied that much: of the self-management artist. It is about not only considering the artistic activities as profession, but as paradigmatic expression of the current market. Analyzing the specifications that allows to draw the independent musician's morphology, collaborates for the theorical debate of the artistic work and the public cultural politics, in its fundamental articulations.

AbstractThis article analyses the contribution of sugar-cane bioelectricity to the distribution and diversification of power generation in Brazil. A transition is currently underway towards an energy mix characterized by natural gas and new renewable energy sources, mainly wind and solar. Energy security and industrial development priorities have created political and economic challenges for bioelectricity governance. However, meta-discourses of energy transition and bioeconomy are giving rise to selection pressures that are promoting institutional changes towards an expansion of the ethanol market. By using the multi-level perspective of transitions, this paper concludes that, given the technology in use for bioelectricity production, the critical financial state of the sugar-cane industry and the current priorities of the electricity marketing model, sugar-cane bioelectricity, which has a key role to play in the energy matrix, remains uncompetitive and dependent on specific public policies to support its expansion.

AbstractWhile the socialist state in China has attempted to elevate the labour of working people as a symbol of national identity, it restricts rural migrant workers’ access to public goods and equal citizenship rights. While rural migrants perform the public identity of the hard worker in order to claim both respect and benefits that go beyond legal recognition, the value of their hard work is also constrained by dubious state institutions and particularistic relationships. In rural-urban migration and market expansion, money mediates the imagination of the nation, but it also devalues rural migrants’ labour, highlighting the social inequality and disjunction between rural and urban, the rich and ordinary people, within the nation. Rural migrants imagine their inclusion in the nation through investment opportunities which always involve an opaque state.

The goal of this paper was to measure and assess the international expansion of independent ground handling providers. Based on the results of individual measurements, we can state that each of the five most important independent providers of groundhandling services selected by us has already undergone a significant international expansion, and thus currently prefers the service of foreign airports to domestic ones. Globalization and the liberalization of the entire aviation sector have largely contributed to this fact, mainly due to the unlocking of market entry and the creation of more favorable conditions on foreign markets. Among the secondary objectives we have included an analysis of the state of the ground handling sector together with an analysis of the European liberalization Directive 96/67 / EC and its impact on the European groundhandling market. The main findings were that for example prices for the provision of ground handling services fell more sharply, while the quality of services increased and the number of providers at airports generally increased, which helped to increase the market share of third-party ground handling providers. The motive for the elaboration of the paper was the outdatedness of previous studies aimed at assessing the international expansion of ground handling service providers. Another motive was the elaboration of a proposal for a measurement method with regard to the performance of providers in foreign markets. The paper presents individual calculations with current input data and classification of providers in terms of the shape of global expansion, taking into account the current ongoing global pandemic Covid-19

The mortgage crisis, started in 2007 in USA, turned into global financial crisis at the end of 2008. This crisis is assumed to be the largest crisis after The Great Depression occurred in 1929. Global Financial Crisis spread out from USA to developed countries and eventually other countries. Some financial institutions went bankruptcy and some of rest has been survived with governments’ financial supports. Crisis affected the real economy after financial markets, due to crisis production and employment decreased all over the countries. Excess liquidity, deterioration of the mortgage loans structure, excessive increases in house prices, securitization of subprime mortgages, lack of transparency, expansion of derivative markets, ineffectiveness of credit rating agencies and delay of regulatory agencies’ intervention are assumed as “reasonable reasons of the crisis. Before all these reasons, deregulation in financial market in USA is the main reason of this crisis. Corporate governance is against decontrol and lack of transparency which cause crisis. Corporate governance focuses on four pillars, which are fairness, transparency, accountability and responsibility. These four principles are associated with measurement and development of performance of government and companies. In this study, we looked from corporate governance window to the global financial crisis, and expressed lessons and advices to be determined. With effective corporate governance, it is expected to add value to stakeholders and being responsible to social values.

At present, the global economy is in the process of establishing a new mechanism of integration in the fields of material production and services, which together with the liberalization of international trade relations at the global level, digital business transformation and new market trends, leads to greater control and regulation. market participants, especially in the field of service provision. The legal provisions governing the provision of services are increasingly influenced by the international legal regime, which significantly determines the further expansion of the capacity of national legislation. In this regard, the growing diversity of services causes various problems in defining and then in understanding the nature of services as well as in establishing a legal framework for their appropriate standardization. Such frameworks should regulate the ways in which services are provided in the global market. In this paper, we provide an overview of the regulatory support that the European Union determines and defines in the field of payment services

The modern digital society was created under the strong influence of the Internet, its global expansion and availability. The Internet has provided a completely new way of accessing information and has become a major source of data in all areas. Companies that do business and sell online have the ability to provide direct marketing and access to an unlimited number of consumers in the global market. Marketing activities begin before the production process begins. The company must do a detailed analysis of the market, consumer needs, must create the best sales strategy and choose the most optimal form of product, and only then approach the promotion phase to gain the largest share of the market. In E-commerce, these phases of marketing gain a new dimension, given the opportunities provided by the Internet, the globalization of commerce and the availability of information. Companies that operate online, within E-commerce, use social networks to monitor the reactions of users as potential customers, in order to classify them as target groups and continue with direct marketing.

Nuclear energy must be made available, freely and readily, to help meet world energy needs. The perspective offered here is a model for others to consider, adopting and adapting using whatever elements fit their own strategies and needs. The underlying philosophy is to retain flexibility in the reactor development, deployment and fuel cycle, while ensuring the principle that customer, energy market, safety, non-proliferation and sustainability needs are all addressed. Canada is the world’s largest exporter of uranium, providing about one-third of the world supply for nuclear power reactors. Canada’s Atomic Energy of Canada Limited (AECL) has developed a unique world-class nuclear power reactor technology — the CANDU® reactor based on the Pressure Tube Reactor (PTR) concept, moderated by heavy water (D2O), also sometimes called the Pressurized Heavy Water reactor or PHWR. With expectations of significant expansion in nuclear power programs worldwide and the resultant concerns about uranium availability and price, there is a growing desire to improve resource utilization by extracting more energy from each tonne of mined fissionable material. Attention is therefore being increasingly focused on fuel cycles that are more energy efficient, reduce waste streams and ensure sustainable futures. There are also many compelling reasons to utilize advanced fuel cycles in PTR (CANDU-type) thermal spectrum reactors. Because of its inherent technical characteristics, PTRs have a great deal of fuel cycle flexibility. The combination of relatively high neutron efficiency (provided by heavy water moderation and careful selection of core materials), on-line fuelling capability and simple fuel bundle design mean that PTR reactors can use not only natural and enriched uranium, but also a wide variety of other fuels including thorium-based fuels and those resulting from the recycle of irradiated fuel. In addition, the PTR can be optimized as a very effective “intermediate burner” to provide efficient fuel cycles that remove residual minor actinides. This inherent fuel cycle flexibility offers many technical, resource and sustainability, and economic advantages over other reactor technologies and is the subject of this paper. The design evolution and intent is to be consistent with improved or enhanced safety, licensing and operating limits and global proliferation concerns, and sustainable energy futures.

In modern conditions of global information space and comprehensive expansion of foreign economic relations shaped society demand for lawyers with skills of applying the conflict rules of private international law and practices in foreign countries. Buying legal services in a foreign country significantly expands the composition of the legal means of advocacy and provides access to local infrastructure and communication. Mastering the skills of applying the conflict rules of national and international law entails: 1) conduct advocacy at a high level; 2) expansion of the market of legal services; 3) the development of new legal technologies. 4) full participation in international cooperation networks of advocates; 5) professional development. The author of this article refers to the number of lawyers authorised to practice law in Germany and in Russia, so many suggestions are based on my own experience of the author.

Neoliberalism rejects a society based on tradition, encourages the weakening of state institutions and especially undermines the system of social protection through poorly implemented privatization and thus cre­ates ideal conditions for international corporations to acquire huge capital. This leads to the fact that the state and state bodies can no longer perform their role of regulators on the national market, but practically serve the in­terests of large international corporations. In recent years, modern society has witnessed the expansion of global crises manifested through climate changes, the imbalance of the global economy and other inequalities, which ultimately through economic poverty leads to an explosion in nature that manifests itself in global pandemics such as this one today. All this requires a special approach and the development of long-term strategies in order to avoid such crises in the future or at least reduce them to the level of tolerability.

The global dollar system, though repeatedly reported to be on its last legs—most recently in the Global Financial Crisis of 2008, but most famously in the Nixon devaluation of 1971—has repeatedly instead consolidated and gone on to further geographical expansion (McCauley 2021). The key currency approach to international monetary economics, first put forward by John H. Williams in the aftermath of the 1931 devaluation of sterling, suggests that such resilience arises from the actions of market practitioners who appreciate the convenience of a global means of payment. So the question arises, why has the key currency approach remained a minority view, if not among practicing bankers then certainly among practicing academics? This paper proposes two main reasons—the discredit of monetary optimism during the depression, and the subsequent fateful adoption of Walrasian equilibrium as the frame for academic discussion after WWII.

This paper introduces a sectoral model for the Spanish economy that allows a better understanding of the propagation of sector-specific shocks taking into account different network interdependencies. In particular, the model features sector interactions along several dimensions in an open economy setting, either in the provision of intermediate inputs and capital goods or competing in the labour market. This framework is flexible enough to provide insights into the effect of several policy-relevant shocks, such as global value chain bottlenecks, increases in production costs in energy-intensive sectors or large public investment programmes. In order to illustrate the role of such sectoral interactions, we consider a sectorisation of Next Generation EU (NGEU) funds based on Spain’s Recovery, Transformation and Resilience Plan (RTRP) which will mobilize €69.5 bn in grants. According to our findings, the average impact over a 5-year horizon is 1.15% of GDP if we consider only the direct effect of the investment programmes and expenditure plans, but it increases to 1.75% if we take into account the increase in the productive capacity of certain sectors and its propagation through the production network. Moreover, the resulting expansion is particularly strong in sectors highly dependent on high-skilled labour, such as IT and professional services, which might lead to shortages of high-skilled workers, reducing the aggregate impact on GDP by 25%.

The worldwide market for ornamental saltwater invertebrates supplies the needs of millions of aquarium hobbyists, public exhibitions (i.e., zoos) universities and research institutions. With respect to reef building corals, it is estimated that more than half a million coral colonies/year from a total 93 genera, were exported globally during the period of 1985-1997. International value of retail sale of live coral trade alone is estimated as $78 million in 1997 (not including the illegally, widely smuggled material). The continuous, large-scale collection of marine organisms is responsible, in many places, for the destruction of coral reefs. The expected expansion of the trade further threatens these fragile habitats. While no true captive-bred corals are commercially available, our long-term goal is to develop ex situ inland farming of coral colonies that will circumvent the need for in situ collections and will provide domesticated specimens for the trade and for research. We simultaneously studied two model branching coral species, Stylophora pistillata (Pocilloporidae; in Israel) and Porites (Poritidae; in the US). The proposal included three specific aims: (a) To develop protocols for nubbins (small fragments, down to the size of a single polyp) usage in coral farming;(b) To address the significance of colony pattern formation to the coral trade; and (c) To develop the protocols of using nubbins in physiological and ecotoxicological assays (using oil dispersants, the expression of the stress protein HSP-70, household detergents, etc.). Ten scientific publications (published manuscripts, accepted for publications, submitted to scientific journals, in preparation), revealing results that were related to all three specific aims, originated from this BARD proposal. As a result of the work supported by the BARD, we have now, in hand, original and improved protocols for coral maintenance ex situ, proven expertise on manipulating coral colonies’ pattern formation and biological knowledge on island mariculture of reef corals (from Hawaii and from the Red Sea) amenable for the ornamental trade (for public and private aquaria use, for experimentation). At least one Israeli company (Red Sea Corals, Ltd., KibbutzSaar) is using our methodologies for further developing this new mariculture sector. We are now in the process of introducing the rationale and methodologies to Hawaiian private entities to expand dissemination of the research outcomes.

1.1 Macroeconomic summary Economic recovery has consistently outperformed the technical staff’s expectations following a steep decline in activity in the second quarter of 2020. At the same time, total and core inflation rates have fallen and remain at low levels, suggesting that a significant element of the reactivation of Colombia’s economy has been related to recovery in potential GDP. This would support the technical staff’s diagnosis of weak aggregate demand and ample excess capacity. The most recently available data on 2020 growth suggests a contraction in economic activity of 6.8%, lower than estimates from January’s Monetary Policy Report (-7.2%). High-frequency indicators suggest that economic performance was significantly more dynamic than expected in January, despite mobility restrictions and quarantine measures. This has also come amid declines in total and core inflation, the latter of which was below January projections if controlling for certain relative price changes. This suggests that the unexpected strength of recent growth contains elements of demand, and that excess capacity, while significant, could be lower than previously estimated. Nevertheless, uncertainty over the measurement of excess capacity continues to be unusually high and marked both by variations in the way different economic sectors and spending components have been affected by the pandemic, and by uneven price behavior. The size of excess capacity, and in particular the evolution of the pandemic in forthcoming quarters, constitute substantial risks to the macroeconomic forecast presented in this report. Despite the unexpected strength of the recovery, the technical staff continues to project ample excess capacity that is expected to remain on the forecast horizon, alongside core inflation that will likely remain below the target. Domestic demand remains below 2019 levels amid unusually significant uncertainty over the size of excess capacity in the economy. High national unemployment (14.6% for February 2021) reflects a loose labor market, while observed total and core inflation continue to be below 2%. Inflationary pressures from the exchange rate are expected to continue to be low, with relatively little pass-through on inflation. This would be compatible with a negative output gap. Excess productive capacity and the expectation of core inflation below the 3% target on the forecast horizon provide a basis for an expansive monetary policy posture. The technical staff’s assessment of certain shocks and their expected effects on the economy, as well as the presence of several sources of uncertainty and related assumptions about their potential macroeconomic impacts, remain a feature of this report. The coronavirus pandemic, in particular, continues to affect the public health environment, and the reopening of Colombia’s economy remains incomplete. The technical staff’s assessment is that the COVID-19 shock has affected both aggregate demand and supply, but that the impact on demand has been deeper and more persistent. Given this persistence, the central forecast accounts for a gradual tightening of the output gap in the absence of new waves of contagion, and as vaccination campaigns progress. The central forecast continues to include an expected increase of total and core inflation rates in the second quarter of 2021, alongside the lapse of the temporary price relief measures put in place in 2020. Additional COVID-19 outbreaks (of uncertain duration and intensity) represent a significant risk factor that could affect these projections. Additionally, the forecast continues to include an upward trend in sovereign risk premiums, reflected by higher levels of public debt that in the wake of the pandemic are likely to persist on the forecast horizon, even in the context of a fiscal adjustment. At the same time, the projection accounts for the shortterm effects on private domestic demand from a fiscal adjustment along the lines of the one currently being proposed by the national government. This would be compatible with a gradual recovery of private domestic demand in 2022. The size and characteristics of the fiscal adjustment that is ultimately implemented, as well as the corresponding market response, represent another source of forecast uncertainty. Newly available information offers evidence of the potential for significant changes to the macroeconomic scenario, though without altering the general diagnosis described above. The most recent data on inflation, growth, fiscal policy, and international financial conditions suggests a more dynamic economy than previously expected. However, a third wave of the pandemic has delayed the re-opening of Colombia’s economy and brought with it a deceleration in economic activity. Detailed descriptions of these considerations and subsequent changes to the macroeconomic forecast are presented below. The expected annual decline in GDP (-0.3%) in the first quarter of 2021 appears to have been less pronounced than projected in January (-4.8%). Partial closures in January to address a second wave of COVID-19 appear to have had a less significant negative impact on the economy than previously estimated. This is reflected in figures related to mobility, energy demand, industry and retail sales, foreign trade, commercial transactions from selected banks, and the national statistics agency’s (DANE) economic tracking indicator (ISE). Output is now expected to have declined annually in the first quarter by 0.3%. Private consumption likely continued to recover, registering levels somewhat above those from the previous year, while public consumption likely increased significantly. While a recovery in investment in both housing and in other buildings and structures is expected, overall investment levels in this case likely continued to be low, and gross fixed capital formation is expected to continue to show significant annual declines. Imports likely recovered to again outpace exports, though both are expected to register significant annual declines. Economic activity that outpaced projections, an increase in oil prices and other export products, and an expected increase in public spending this year account for the upward revision to the 2021 growth forecast (from 4.6% with a range between 2% and 6% in January, to 6.0% with a range between 3% and 7% in April). As a result, the output gap is expected to be smaller and to tighten more rapidly than projected in the previous report, though it is still expected to remain in negative territory on the forecast horizon. Wide forecast intervals reflect the fact that the future evolution of the COVID-19 pandemic remains a significant source of uncertainty on these projections. The delay in the recovery of economic activity as a result of the resurgence of COVID-19 in the first quarter appears to have been less significant than projected in the January report. The central forecast scenario expects this improved performance to continue in 2021 alongside increased consumer and business confidence. Low real interest rates and an active credit supply would also support this dynamic, and the overall conditions would be expected to spur a recovery in consumption and investment. Increased growth in public spending and public works based on the national government’s spending plan (Plan Financiero del Gobierno) are other factors to consider. Additionally, an expected recovery in global demand and higher projected prices for oil and coffee would further contribute to improved external revenues and would favor investment, in particular in the oil sector. Given the above, the technical staff’s 2021 growth forecast has been revised upward from 4.6% in January (range from 2% to 6%) to 6.0% in April (range from 3% to 7%). These projections account for the potential for the third wave of COVID-19 to have a larger and more persistent effect on the economy than the previous wave, while also supposing that there will not be any additional significant waves of the pandemic and that mobility restrictions will be relaxed as a result. Economic growth in 2022 is expected to be 3%, with a range between 1% and 5%. This figure would be lower than projected in the January report (3.6% with a range between 2% and 6%), due to a higher base of comparison given the upward revision to expected GDP in 2021. This forecast also takes into account the likely effects on private demand of a fiscal adjustment of the size currently being proposed by the national government, and which would come into effect in 2022. Excess in productive capacity is now expected to be lower than estimated in January but continues to be significant and affected by high levels of uncertainty, as reflected in the wide forecast intervals. The possibility of new waves of the virus (of uncertain intensity and duration) represents a significant downward risk to projected GDP growth, and is signaled by the lower limits of the ranges provided in this report. Inflation (1.51%) and inflation excluding food and regulated items (0.94%) declined in March compared to December, continuing below the 3% target. The decline in inflation in this period was below projections, explained in large part by unanticipated increases in the costs of certain foods (3.92%) and regulated items (1.52%). An increase in international food and shipping prices, increased foreign demand for beef, and specific upward pressures on perishable food supplies appear to explain a lower-than-expected deceleration in the consumer price index (CPI) for foods. An unexpected increase in regulated items prices came amid unanticipated increases in international fuel prices, on some utilities rates, and for regulated education prices. The decline in annual inflation excluding food and regulated items between December and March was in line with projections from January, though this included downward pressure from a significant reduction in telecommunications rates due to the imminent entry of a new operator. When controlling for the effects of this relative price change, inflation excluding food and regulated items exceeds levels forecast in the previous report. Within this indicator of core inflation, the CPI for goods (1.05%) accelerated due to a reversion of the effects of the VAT-free day in November, which was largely accounted for in February, and possibly by the transmission of a recent depreciation of the peso on domestic prices for certain items (electric and household appliances). For their part, services prices decelerated and showed the lowest rate of annual growth (0.89%) among the large consumer baskets in the CPI. Within the services basket, the annual change in rental prices continued to decline, while those services that continue to experience the most significant restrictions on returning to normal operations (tourism, cinemas, nightlife, etc.) continued to register significant price declines. As previously mentioned, telephone rates also fell significantly due to increased competition in the market. Total inflation is expected to continue to be affected by ample excesses in productive capacity for the remainder of 2021 and 2022, though less so than projected in January. As a result, convergence to the inflation target is now expected to be somewhat faster than estimated in the previous report, assuming the absence of significant additional outbreaks of COVID-19. The technical staff’s year-end inflation projections for 2021 and 2022 have increased, suggesting figures around 3% due largely to variation in food and regulated items prices. The projection for inflation excluding food and regulated items also increased, but remains below 3%. Price relief measures on indirect taxes implemented in 2020 are expected to lapse in the second quarter of 2021, generating a one-off effect on prices and temporarily affecting inflation excluding food and regulated items. However, indexation to low levels of past inflation, weak demand, and ample excess productive capacity are expected to keep core inflation below the target, near 2.3% at the end of 2021 (previously 2.1%). The reversion in 2021 of the effects of some price relief measures on utility rates from 2020 should lead to an increase in the CPI for regulated items in the second half of this year. Annual price changes are now expected to be higher than estimated in the January report due to an increased expected path for fuel prices and unanticipated increases in regulated education prices. The projection for the CPI for foods has increased compared to the previous report, taking into account certain factors that were not anticipated in January (a less favorable agricultural cycle, increased pressure from international prices, and transport costs). Given the above, year-end annual inflation for 2021 and 2022 is now expected to be 3% and 2.8%, respectively, which would be above projections from January (2.3% and 2,7%). For its part, expected inflation based on analyst surveys suggests year-end inflation in 2021 and 2022 of 2.8% and 3.1%, respectively. There remains significant uncertainty surrounding the inflation forecasts included in this report due to several factors: 1) the evolution of the pandemic; 2) the difficulty in evaluating the size and persistence of excess productive capacity; 3) the timing and manner in which price relief measures will lapse; and 4) the future behavior of food prices. Projected 2021 growth in foreign demand (4.4% to 5.2%) and the supposed average oil price (USD 53 to USD 61 per Brent benchmark barrel) were both revised upward. An increase in long-term international interest rates has been reflected in a depreciation of the peso and could result in relatively tighter external financial conditions for emerging market economies, including Colombia. Average growth among Colombia’s trade partners was greater than expected in the fourth quarter of 2020. This, together with a sizable fiscal stimulus approved in the United States and the onset of a massive global vaccination campaign, largely explains the projected increase in foreign demand growth in 2021. The resilience of the goods market in the face of global crisis and an expected normalization in international trade are additional factors. These considerations and the expected continuation of a gradual reduction of mobility restrictions abroad suggest that Colombia’s trade partners could grow on average by 5.2% in 2021 and around 3.4% in 2022. The improved prospects for global economic growth have led to an increase in current and expected oil prices. Production interruptions due to a heavy winter, reduced inventories, and increased supply restrictions instituted by producing countries have also contributed to the increase. Meanwhile, market forecasts and recent Federal Reserve pronouncements suggest that the benchmark interest rate in the U.S. will remain stable for the next two years. Nevertheless, a significant increase in public spending in the country has fostered expectations for greater growth and inflation, as well as increased uncertainty over the moment in which a normalization of monetary policy might begin. This has been reflected in an increase in long-term interest rates. In this context, emerging market economies in the region, including Colombia, have registered increases in sovereign risk premiums and long-term domestic interest rates, and a depreciation of local currencies against the dollar. Recent outbreaks of COVID-19 in several of these economies; limits on vaccine supply and the slow pace of immunization campaigns in some countries; a significant increase in public debt; and tensions between the United States and China, among other factors, all add to a high level of uncertainty surrounding interest rate spreads, external financing conditions, and the future performance of risk premiums. The impact that this environment could have on the exchange rate and on domestic financing conditions represent risks to the macroeconomic and monetary policy forecasts. Domestic financial conditions continue to favor recovery in economic activity. The transmission of reductions to the policy interest rate on credit rates has been significant. The banking portfolio continues to recover amid circumstances that have affected both the supply and demand for loans, and in which some credit risks have materialized. Preferential and ordinary commercial interest rates have fallen to a similar degree as the benchmark interest rate. As is generally the case, this transmission has come at a slower pace for consumer credit rates, and has been further delayed in the case of mortgage rates. Commercial credit levels stabilized above pre-pandemic levels in March, following an increase resulting from significant liquidity requirements for businesses in the second quarter of 2020. The consumer credit portfolio continued to recover and has now surpassed February 2020 levels, though overall growth in the portfolio remains low. At the same time, portfolio projections and default indicators have increased, and credit establishment earnings have come down. Despite this, credit disbursements continue to recover and solvency indicators remain well above regulatory minimums. 1.2 Monetary policy decision In its meetings in March and April the BDBR left the benchmark interest rate unchanged at 1.75%.

La actividad económica se ha recuperado a una mayor velocidad de la proyectada y el producto alcanzaría su nivel prepandemia antes de lo esperado. La proyección de crecimiento económico para 2021 y 2022 se incrementó, pero los sesgos a la baja son significativos (Gráfico 1.1). En el tercer trimestre la economía colombiana retomó su senda de recuperación después de los fuertes choques de oferta y de la tercera ola de contagios de la pandemia registrados en el segundo. En el tercer trimestre no se presentaron choques negativos que afectaran la movilidad y el producto, y algunos indicadores de actividad económica señalan que el ritmo de recuperación de la demanda, principalmente del consumo, sería más rápido que el estimado en el informe anterior, en un entorno de una política monetaria ampliamente expansiva. En lo que resta del año y hacia 2022 algunos factores seguirían contribuyendo a la recuperación del producto. La persistencia de condiciones financieras internacionales favorables, la mejora esperada de la demanda externa y el aumento de los términos de intercambio aportarían a una mejor dinámica de la actividad económica. A esto se sumarían los efectos de los avances en el programa de vacunación, los mayores niveles de empleo esperados y su efecto positivo sobre el ingreso de los hogares, el mejor desempeño de la inversión (que todavía no ha recuperado sus niveles prepandemia) y el estímulo provisto por una política monetaria que continuaría siendo expansiva. Con esto se estima que el nivel del producto previo a la pandemia se haya alcanzado en el tercer trimestre de este año (cuando antes se preveía que fuera para el cuarto trimestre), que el crecimiento para 2022 se desacelere y que los excesos de capacidad productiva se cierren a una velocidad mayor que la estimada en el informe anterior. Así, se revisaron al alza las proyecciones de crecimiento del producto interno bruto (PIB) para 2021 (9,8 %, en un rango entre el 8,4 % y el 11,2 %) y 2022 (4,7 %, en un rango entre el 0,7 % y el 6,5 %). De confirmarse estas estimaciones, entre 2020 y 2022 el producto registraría un aumento promedio del 2,3%, cifra inferior al crecimiento sostenible de largo plazo estimado para Colombia antes de la pandemia. El nuevo pronóstico de crecimiento de 2022 sigue teniendo en cuenta una base baja de comparación un año atrás (debido a los efectos negativos de la pandemia y los bloqueos) y su revisión al alza supone que los niveles de consumo que se estiman para finales de 2021 se mantendrían relativamente estables en 2022, mientras que la inversión y las exportaciones netas continuarían recuperándose a un mejor ritmo que el estimado en el informe anterior. No obstante, sobre estas estimaciones persisten riesgos a la baja inusualmente altos. En primer lugar, porque no se suponen efectos significativos sobre la actividad económica de posibles nuevas olas de contagio del Covid-19. En segundo lugar, los altos niveles del consumo privado, que ya superan por amplio margen los registrados antes de la pandemia, podrían tener un comportamiento menos favorable que el estimado en este pronóstico, toda vez que pueden estar reflejando un fenómeno temporal de demanda represada, en un entorno de apertura de algunos servicios (v. g.: turismo) y de una desacumulación del ahorro privado registrado durante la pandemia. En tercer lugar, las disrupciones en las cadenas de suministro podrían ser más persistentes que lo considerado en este informe, seguir impactando los costos de producción y afectar negativamente la actividad económica. Finalmente, la acumulación de desbalances macroeconómicos en Colombia genera una mayor vulnerabilidad del país ante un cambio fuerte en la percepción de riesgo de los agentes, locales y externos, o en las condiciones financieras internacionales, lo que representa un riesgo a la baja sobre el crecimiento. El aumento de la inflación por encima de lo esperado, la persistencia de algunos choques de oferta y unos menores excesos de capacidad productiva incrementaron la proyección de la inflación en el horizonte de pronóstico y la sitúan por encima de la meta (Gráfico 1.2). En el tercer trimestre la inflación se incrementó más de lo estimado y se ubicó en el 4,51 %. Esta sorpresa se explicó en gran parte por el comportamiento de los precios de los alimentos y de los regulados, y en menor medida por la inflación básica. El incremento de los precios y de los costos internacionales continúa generando presiones al alza sobre varias subcanastas del índice de precios al consumidor (IPC), a lo que se suma la reversión parcial de algunos de los alivios de precios implementados en 2020. El pronóstico de la inflación se revisó al alza por una persistencia de los choques externos que sería mayor que la estimada en el informe anterior y por los efectos de la indexación a una mayor inflación sobre algunos precios de la economía. Adicionalmente, los excesos de capacidad productiva se estarían reduciendo más rápido de lo previsto, lo que se reflejaría en menores presiones a la baja sobre la inflación básica. Con esto, la inflación total alcanzaría el 4,9 % y 3,6 % para finales de 2021 y 2022, respectivamente. Para las mismas fechas, la inflación básica (sin alimentos ni regulados: SAR) se situaría en el 2,5 % y 3,9 % (Gráfico 1.3), incremento explicado, en parte, por choques transitorios asociados con los efectos de las medidas tributarias, como los días sin impuesto al valor agregado (IVA)1. No obstante, estas estimaciones mantienen un amplio margen de incertidumbre asociado, parcialmente, con la magnitud de los excesos de capacidad productiva en la economía y la velocidad con la que estos se sigan reduciendo. También, por una mayor volatilidad en los precios y en su medición por cuenta de la extensión de la emergencia sanitaria y los alivios de impuestos aprobados en la Ley de Inversión Social (v. g.: los días sin IVA), hechos que dificultan estimar la inflación básica en el horizonte de pronóstico. Finalmente, por el riesgo de que la mayor persistencia de los choques de oferta afecte las expectativas de inflación o induzcan un aumento en la indexación de algunas canastas del IPC con especto a lo contemplado en el pronóstico. La demanda externa relevante para el país continuaría recuperándose, en un entorno de mayores presiones sobre la inflación global. Las condiciones financieras internacionales seguirían siendo favorables, aunque se espera un aumento en el costo externo de financiamiento en el horizonte de pronóstico. En el primer semestre de 2021 el crecimiento de los socios comerciales resultó mejor de lo esperado. El buen desempeño de la actividad económica se ha dado en un contexto de importantes avances en la vacunación, amplia liquidez internacional y de una recuperación en el comercio de bienes. Sin embargo, la propagación de nuevas cepas del virus y la persistencia de los problemas en las cadenas globales de suministro han moderado los pronósticos para lo que resta del año. Con todo lo anterior, se revisó el supuesto de crecimiento de los principales socios comerciales del país del 6,0 % al 6,3 % para 2021 y del 3,5 % al 3,4 % para 2022. Los términos de intercambio del país se han incrementado debido principalmente a los aumentos en las cotizaciones del petróleo, café y carbón, a pesar de las alzas en los precios de los bienes y servicios que compra el país. Hacia adelante, se sigue esperando una reducción del precio del petróleo en la medida en que se moderen los problemas en los mercados de bienes del gas y el carbón, y que se amplíe la oferta mundial de crudo. El aumento en los fletes y las disrupciones en las cadenas de suministro continúan generando aumentos significativos en los costos de producción mundial. Esto, junto con la recuperación de la demanda global, ha presionado al alza la inflación externa. En este entorno varios países emergentes han iniciado una normalización de su política monetaria. Para los Estados Unidos, el mercado espera que la inflación sea más alta para 2021 y parte de 2022, que el tapering se inicie a finales de este año y se supone que el primer incremento de la tasa de interés de política monetaria se dé a finales de 2022, con otro aumento a mediados de 2023. Por su parte, las primas de riesgo soberano de Colombia han sido superiores a las del trimestre anterior. En este contexto, el pronóstico de este informe supone una convergencia más rápida de la prima de riesgo a niveles por encima del promedio de los últimos quince años, debido, en parte, a la acumulación de desbalances macroeconómicos del país. Con todo esto, las condiciones financieras internacionales continuarían siendo holgadas, aunque menos de lo previsto en el informe anterior. El aumento del costo de financiamiento externo para Colombia podría ser mayor si las presiones alcistas sobre la inflación en los Estados Unidos persisten y adelantan la normalización de la política monetaria en ese país. En general, la incertidumbre sobre el contexto externo sigue siendo inusualmente elevada debido a que se desconoce la evolución de la pandemia, la persistencia de las disrupciones en las cadenas globales de suministro, los impactos de la crisis energética, y una mayor desaceleración de China, entre otros factores. Frente al informe de julio, los excesos de capacidad productiva se reducen a un ritmo mayor que el esperado (Gráfico 1.4), las inflaciones total y básica presentan tendencias crecientes, las expectativas de inflación han aumentado (aunque se ubican cerca del 3 % a mediano plazo) y la política monetaria continúa siendo expansiva. El sorpresivo ritmo de crecimiento económico y la evolución de algunos precios de la economía sugieren que los excesos de capacidad estarían reduciéndose más rápido de lo previsto. Asimismo, el mejor desempeño de la demanda interna se ha visto reflejado en una ampliación del déficit de la cuenta corriente. La inflación básica continúa por debajo del 3 %, pero muestra una tendencia al alza, mientras que las expectativas de inflación han aumentado, aunque para el mediano plazo se mantienen alrededor del 3 %. No obstante, se ha incrementado el riesgo de que una mayor persistencia de los choques de oferta y su efecto alcista sobre los precios afecten las expectativas de inflación, produzcan una mayor indexación, y alejen la inflación de la meta de forma más persistente. El mercado laboral continúa holgado, aunque las cifras de septiembre mostraron una recuperación mejor que la esperada. Con todo esto, se estima que la brecha del producto siga siendo negativa, pero menos que antes, y que los choques transitorios de oferta que han afectado la inflación sean más persistentes. Así, el equipo técnico considera que la disyuntiva entre excesos de capacidad productiva e inflación por encima de la meta continúa, pero el balance se inclina hacia un riesgo más alto de mayor inflación. 1.2 Decisión de política monetaria La Junta Directiva del Banco de la República (JDBR) decidió iniciar un proceso de normalización de la política monetaria a partir de la reunión de septiembre de 2021. En las reuniones de septiembre y octubre la JDBR decidió por mayoría incrementar la tasa de política monetaria en 25 y 50 puntos básicos (pb), respectivamente, para ubicarla en el 2,5 %.