The Impact of the Global Financial Crisis on Country Attractiveness

International investors are increasingly attracted towards emerging and frontier markets because of their potential to enhance diversification benefits of a global portfolio. This calls for a rigorous analysis of the nature and determinants of stock market comovement between developed, emerging, and frontier markets in Europe and Asia-Pacific regions. The findings suggest that unlike their Asia-Pacific counterparts, European developed, emerging, and frontier stock markets display a higher degree of comovement. Although Asia-Pacific frontier markets provide good diversification opportunities, investors must be cautioned against their weak financial system. The volatility of returns, gross domestic product growth rate, and the 2008 global financial crisis (GFC) are the key determinants of stock market comovement in Europe. The mechanisms by which comovement in the Asia-Pacific region is strengthened differ across markets. Comparative analysis of comovement and its determinants across different classes of equity markets and geographies is expected to provide valuable perspectives to global investors, portfolio managers, and policymakers.

Section: Resultssupporting

confidence: 86%

The nature and determinants of comovement between developed, emerging and frontier equity markets: Europe versus Asia‐Pacific

Thomas

Kashiramka

Yadav

2018

“…Perceived growth in the market causes the demand for products to grow, and this motivates franchisees to franchise (Hollensen, ). Aliouche () also perceives demand to be the potential growth of the market and the purchasing power of consumers.…”

Section: Motivations For Franchisingmentioning

confidence: 99%

“…Past studies further indicate that the cultural distance increases management costs and creates difficulty in managing the marketing mix element. For example, Aliouche () opines that differences in culture affect the purchasing patterns of consumers as well as the behavior of other stakeholders including employees. They also negatively affect the cost of monitoring and logistical support to a franchisee.…”

Section: Challenges Of Franchisingmentioning

confidence: 99%

Franchising in African markets: Motivations and challenges from a Sub‐Saharan African country perspective

Kastner

Mahmoud

Buame³

et al. 2018

The purpose of this article is to explore and understand the motivations and challenges of franchising in an African economy. While interest in franchising is increasing in African markets, there is a paucity of research on franchising from the perspective of local African firms participating in these international relationships. The motivations and challenges of franchising from the perspective of African businesses have not been largely investigated so far. Using in‐depth interviews, we allow motivations and challenges at play to emerge. Convenient and snowball sampling techniques were used for choosing the unit of analysis, which resulted in four respondent firms. A thematic approach was adopted for analyzing the data from the field. Support services, brand name, and franchisor's experience are identified to be the motivations for franchising. Financial assistance from the franchisor, demand, and competition also play a key role in an African firm's decision to franchise. Legal constraints and infrastructure constraints were the key challenges faced by franchisees in Ghana. The findings of this study may hold for franchisees in other African markets. However, contextual differences may be considered in the application of these findings.

“…Despite the recent crisis, Ireland has made up only a small part of its lost competitiveness (Whelan, ). In the current competitive global market, multinationals are continuously looking to restructure their network, resulting in footloose activities through moving into a more cost‐effective location (Aliouche, ). Although this activity is not new and has taken place continuously throughout the European integration process (Filippaios & Papanastassiou, ), the effects were intensified during the global financial crisis.…”

Section: Conclusion and Policy Recommendationsmentioning

confidence: 99%

“…In parallel, the drop in unit labor costs has helped the Irish economy to restore investors’ belief and reverse the trend of FDI by attracting substantial investments (Gunnigle, Lavelle, & Monaghan, ). Despite the initial drop in 2007, FDI projects peaked in 2011, with a total of 16,000 jobs and US$7.06 billion in capital invested (Aliouche, ; fDi Markets, ).…”

Section: Introductionmentioning

confidence: 99%

Multinational Firms’ Motivations and Foreign Direct Investment Decisions: An Analysis of the Software and IT and Financial Services Sectors in the Irish Context

Annan-Diab

Filippaios

2017

This article focuses on the way greenfi eld foreign direct investment ( FDI ) in different sectors is infl uenced by locational characteristics and explores the role of policy in attracting and retaining foreign investment. We contribute to the literature by empirically investigating the investment motivations of multinational companies in the software and information technology ( IT ) and fi nancial services sectors in Ireland and those locational factors that contribute to the retention of FDI . The methodology used in this research is of a qualitative nature, and an exploratory deductive approach is adopted in order to gain an understanding of fi rms' internationalization decisions and motivations. The data demonstrate that companies in the two sectors follow different investment motivations. Firms in the software and IT sector entered Ireland primarily because of the availability of a high-quality workforce, whereas fi rms in the fi nancial services sector entered Ireland following the deregulation of markets and the subsequent ease of doing business. The article builds on these fi ndings to develop policy recommendations.