Global Entrepreneurship Institute

Posted by: Robert W. Price

How many technology companies are confident enough to venture outside the sheltered environment of their home country to compete against the market leaders in their own turf? Not many, especially for the new or young business ventures. Many avoid entering “the lion’s den”, so to speak, for fear that they will be eaten alive. Yet, not many realize that if they cannot survive the “lion’s den”, they may not last very long within their own nest, shares seasoned venture capitalist Gideon Tolkowsky.
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SOURCE: Knowledge@Wharton Network

By: Fabio Milani
Publisher: Globalization and Monetary Policy Institute

Abstract: This paper estimates a structural New Keynesian model to test whether globalization has changed the behavior of U.S. macroeconomic variables. The empirical results indicate that globalization can explain only a small part of the reduction in the slope of the Phillips curve.

The Federal Reserve Bank of Dallas established the Globalization and Monetary Policy Institute in 2007 for the purpose of better understanding how the process of deepening economic integration between the countries of the world, or globalization, alters the environment in which U.S. monetary policy decisions are made. The Institute’s mission is to produce research that sheds light on important policy questions and meets the highest standards of the peer-reviewed literature.

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By Roc Armenter and Miklos Koren
Publisher: Philadelphia Fed’s Research Department

Taking into consideration some of the facts often cited as support for models with economies of scale and firm heterogeneity, the authors find that the basic Melitz model cannot simultaneously match the size and share of exporters given the observed distribution of total sales. The authors’ evidence suggests that economies of scale play only a minor role in determining a firm’s export status.  Intended for the professional researcher, working papers are written by economists in the Bank’s Economic Research Department and visiting scholars.

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Discussions About Investing To Go Global

By: Robert W. Price

Before making the decision to commit critical capital resources overseas, the venture needs to have a clear understanding of why it is doing so. Before discussing the reasons for investing overseas, we first want to discuss Foreign Direct Investment (FDI). For statistical purposes FDI is usually defined as ownership of at least 10 to 25 percent of the equity of one venture in one country, by another venture based in another country.

Continue reading ‘What are the capital investment decisions for going global?’ »

Are you ready to “go global?”

Strategic motives must drive the decisions to conduct business globally.
- Are you a global entrepreneur?
- Are you ready to go global?
- But what is your action plan?
- Where do you begin?
- How do you begin?
- Which markets should be entered first?
- What would be the optimal mode of entry?
- How rapidly should you expand globally?

We are living in a world where all the major business functions in the value chain are highly globalized and deeply integrated. According to McKinsey and Company, 80 percent of the world’s GDP will be sold across international borders by 2027, compared to about 20 percent in 2001. Multinational business activity will grow from approximately $5 trillion to $70 trillion by 2027.

Continue reading ‘What are the benefits to going global?’ »

Posted by: Robert W. Price 

New Report by McKinsey & Company 

Globalization has taken a wallop in the downturn, but don’t count it out. For companies managing global supply chains, the job just got harder but the advantages of outsourcing will continue to outweigh the costs, according to a new article on What Matters, Global sourcing in a world less flat, by McKinsey authors Dan Braga, Drew Erdmann, Yogesh Malik, and Aurobind Satpathy. Executives surveyed by McKinsey agree. They see trade and commitment to free markets slowing, but only temporarily.
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Continue reading ‘Global Sourcing in a World Less Flat’ »

Discussions of Global Entrepreneurship 

A true global entrepreneur, Howard Schultz, who led the purchase of Seattle-based Starbucks Coffee in 1987 for $250,000, later boasted, “Starbucks is going to be a global brand, in the same genre as Coke and Disney.” Continue reading ‘What is a global entrepreneur?’ »

 By: Robert W. Price

WASHINGTON, DC – Today U.S. Small Business Administration Acting
Administrator Sandy K. Baruah joined U.S. Secretary of Commerce Carlos
Gutierrez, U.S. Trade Representative Susan Schwab and other officials to
press for pending Free Trade Agreements with Colombia, Panama and South
Korea. His statement follows:

Continue reading ‘SBA Argues for Pending Free Trade Agreements’ »

By: Dubos J. Masson, PhD, CTP, Cert ICM

How significant changes in the Mexican financial sector are impacting U.S.-Mexico business transactions

Mexico is a key trading partner with the United States and a member of NAFTA, and as such, many U.S. businesses have significant dealings with Mexican suppliers, customers, or subsidiaries. While there are some similarities in commercial banking practices, there are other, very significant differences between the Mexican and U.S. environments, for example, prevalence of foreign-owned financial institutions, varying payroll delivery mechanisms, and levels of anti-money laundering compliance.
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International Competitive Pressure Varies In Impact On U.S. Manufacturers

Currency exchange rate pressures lead to an increase in the exit rates very small manufacturers (fewer than 20 employees), finds a report released by the Office of Advocacy of the U.S. Small Business Administration.

Continue reading ‘Report: Global Impact On U.S. Small Manufacturers’ »

When entering China, businesses can’t rely on approaches that worked in their home markets. Leaders must consider the diversity of the country, as well as its social norms, changing regulatory environment, and uneven infrastructure. Executives who take a “helicopter view” and consider the context of their surroundings will be more likely to thrive in the Chinese marketplace.

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 Lighting the Way: Toward a Sustainable Energy Future

The InterAcademy Council has released a new report, commissioned by the governments of Brazil and China, identifying and detailing the scientific consensus framework for directing global energy development. Continue reading ‘Report: Toward a Sustainable Energy Future’ »

Experiments In Financial Liberalization: The Mexican Banking Sector

Examines financial liberalization in Mexico, which has the most free-trade agreements in the world today. This liberalization has included the banking industry, particularly since 1997, when foreign banks were allowed to enter the Mexican market.

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Barriers to Foreign Direct Investment Under Political Instability

This article describes some stylized facts about expropriation of Foreign Direct Investment (FDI) and develop a theory that relates direct and indirect forms of expropriation to the degree of political instability (the frequency at which groups alternate in power) and concentration of power (the number of powerful groups affecting policy). Continue reading ‘Barriers to Foreign Direct Investment (FDI)’ »

Booz Allen Hamilton’s annual study of the world’s largest corporate R&D spenders finds two primary success factors: aligning the innovation model to corporate strategy and listening to customers every step of the way.

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