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:
Multinationals are able to avoid certain competition in frontier economics and are therefore lik...
- 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.