Mapping Out your Strategy to Win in the Frontier Economies


 
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Mapping Out your Strategy to Win in the Frontier Economies
Chloe Xu, Australia, Premium Member
Global players in search for double-digit growth are believed to be running out of opportunities. As a result, multinationals are turning to so called “frontier economies” as both new product markets and manufacturing bases. Musacchio & Werker (2016) defined that a “Frontier economy” is a country possessing one or more of the three characteristics:
  • FALTERING PROSPERITY. Either the country has an annual per capita income of less than US$ 1,500 and / or it has a drop of over 20% in real GDP per capital in a six-year period over the past two decades.
  • CORRUPTION. The country’s industries are driven by politically engineered market falsifications or state-given concessions rather than innovation or competitive differentiation.
  • ARBITRARY ENFORCEMENT. The country’s leaders have broad power to do as they please without rules and regulations.
Multinationals are able to avoid certain competition in frontier economics and are therefore lik...
 

 























 


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