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- 19 Mar 2007
- Research & Ideas
Handicapping the Best Countries for Business
India? South Africa? Russia? Which are the best countries for a firm to invest in? In a new book, Professor Richard Vietor looks at the economic, political, and structural strengths and weaknesses of ten countries and tells readers how to analyze the development of these areas in the future. Read our Q&A and book excerpt. Key concepts include: Governments create the overall environment for successful competition in the global economy. Bad government can only lead to less competitive businesses. To be competitive, countries need to offer businesses sound fiscal and monetary policies, secure property rights, high savings and investment, an absence of corruption, and exports that are competitive in enough areas to eventually balance imports. Business people must understand where markets and countries are headed by analyzing the present and then extending current performance trends forward three to five years. Although each has issues, Singapore, China, and India are currently the best bets for FDI and, pending political stability, so is Russia. Closed for comment; 0 Comments.
- 28 Feb 2007
- Research & Ideas
Capital Rules: The Tensions of Global Finance
With the start of the new decade, most global financial powers are rethinking a previously powerful trend toward liberalizing global finance. In his new book Capital Rules, Professor Rawi Abdelal charts the intellectual, legal, and political history of financial globalization, and the tensions facing today's world economy. Read an excerpt. Key concepts include: The year 1998 was the closest the world has come to establishing a consensus that capital's right to freedom applies always and everywhere. The world looks different to most financial policymakers in the twenty-first century, with many regions, and the United States in particular, adopting ad hoc measures that benefit their own interests but ignore the lessons learned from financial crises in the 1920s and 1930s. The European Commission is the only recognized international financial authority to support complete, unqualified capital mobility. Closed for comment; 0 Comments.
- 22 Jan 2007
- Working Paper Summaries
“Don’ts" and "Do’s”: Insights from Experience in Mitigating Risks of Western Investors in Post-Communist Countries
Cultural and other misunderstandings between westerners and locals in post-communist countries are very costly, and western investors grossly underestimate how damaging ineffective interaction really is. This article shows that such interaction constitutes a major stumbling block to effective risk management and stands in the way of the enterprise fully taking advantage of opportunities for profit in these product-hungry, fast-expanding, and dynamic economies. Ultimately, effective communication between westerners and locals is the necessary condition for the success of western investments in transition countries. Key concepts include: On the whole, and with several notable exceptions, investors and business executives from mature western economies pay far too little attention to the quality of their interaction with their local counterparts. Misconceptions about the "realities" of dealing with locals and the practices which such misconceptions lead to can engender vicious circles of misunderstandings, resentments, and lack of trust. It is well within the power of western investors and executives to generate a better relationship with locals. The westerners' best guides for meeting the challenge of effective interaction with locals across differences in business practices, concerns, priorities, and values are the same basic principles and managerial tools which they would apply within mature economies. Closed for comment; 0 Comments.
- 11 Oct 2006
- Research & Ideas
U.S. Tops Business Competitiveness Index 2006
The United States and Germany continue to top an annual review of the business competitiveness of 121 countries, which is compiled by Professor Michael Porter's Institute for Strategy and Competitiveness at Harvard Business School. While India climbed in the rankings, China fell. Key concepts include: The Business Competitiveness Index measures the underpinnings of a country's prosperity. While a nation's macroeconomic factors are often considered fundamental to long-term prosperity, productivity depends on microeconomic factors such as the level of company sophistication and quality of the business environment. Unless microeconomic capabilities improve, sustainable improvements in prosperity will not occur. Closed for comment; 0 Comments.
- 05 Sep 2006
- Research & Ideas
HBS Cases: Porsche’s Risky Roll on an SUV
Why would a company want to locate in a high-cost, high-wage economy like Germany? Porsche's unusual answer has framed two case studies by HBS professor Jeffrey Fear and colleague Carin-Isabel Knoop. Closed for comment; 0 Comments.
- 21 Aug 2006
- Research & Ideas
How Europe Wrote the Rules of Global Finance
Following decades of liberalization, controls on cross-border capital movements are again being discussed by financial institutions, governments, and policymakers around the globe. Professor Rawi Abdelal discusses implications and the historical roles of Europe and the United States in promoting the flow of capital across national borders. Key concepts include: European policymakers, particularly the French, created regulations and enforcement that govern the majority of the world's capital flows. The U.S. has followed an ad hoc approach to capital liberalization, with no evidence it supported a liberal international financial regime. The trend toward liberalization and a lessening of capital controls on worldwide finance appears to be on the wane. Closed for comment; 0 Comments.
- 07 Aug 2006
- Research & Ideas
Whatever Happened to Caveat Emptor?
In many world nations, consumers enjoy vast protections that are relatively new on the scene. Why the rapid rise in consumer protectionism? Why do these efforts vary from country to country? A discussion with professor Gunnar Trumbull on his new book, Consumer Capitalism. Key concepts include: Until the 1960s, consumers enjoyed few regulatory protections from faulty products. The United States led the change. Consumer protections, which vary in scope and intent from country to country, influence product design. Germans favor quality; the French, innovation. Consumers benefit from these protections, but as part of a larger trend toward modernization, something in the social fabric is lost. Closed for comment; 0 Comments.
- 02 Aug 2006
- Research & Ideas
Investor Protection: The Czech Experience
When TV Nova launched as the first private television channel in post-communist Czechoslovakia, few anticipated the business drama behind the scenes. HBS professor Mihir Desai explains what managers can learn from one unlucky investor's experience. Key concepts include: Think hard about partner selection, deal structuring, and operational decisions when expropriation is a key risk. Well-constructed joint ventures should embody the notion of "Trust, but verify." Seek partners with experience with foreign companies and a track record of good behavior. Closed for comment; 0 Comments.
- 05 Jul 2006
- Working Paper Summaries
Why IT Matters in Midsized Firms
What does IT actually contribute to a business? Is IT a commodity like electricity or is it a crucial element of competitive advantage? In a study of over 600 medium-sized global firms to analyze the business benefits that IT can enable, the authors found that IT capability was key to profitable business growth. This was true in both the U.S. product and services sectors as well as in Germany and Brazil. Key concepts include: IT matters. IT enables firms to scale. The amount a company spends on IT is a poor indicator of IT functionality and business impact. Firms with business process scalability find it easier to overcome obstacles to growth, differentiate themselves from competitors, and quickly capitalize on opportunities. Closed for comment; 0 Comments.
- 27 Feb 2006
- Research & Ideas
When Rights of First Refusal Are a Bad Deal
Contracts that include a right of first refusal usually benefit the holder of that right. But not always. New research by professor Alvin E. Roth and colleague Brit Grosskopf explains when it's wise to say no. Closed for comment; 0 Comments.
- 28 Nov 2005
- Research & Ideas
Unilever: Transformation and Tradition
In a new book, professor Geoffrey Jones looks at Unilever's decades-old transformation from fragmented underperformer to focused consumer products giant. This epilogue summarizes the years 1960 to 1990. Closed for comment; 0 Comments.
- 10 Oct 2005
- Research & Ideas
Homers: Secrets on the Factory Floor
Homers are things you make for personal use while on company time. Professor Michel Anteby says that although the practice might be illegal, some companies secretly endorse it. Here's why. Closed for comment; 0 Comments.
- 03 Oct 2005
- What Do You Think?
What’s the Future of Globally Organized Labor?
There’s an ongoing story of fragmentation in the union movement in North America. Will the concept of cooperation and individual sacrifice for the common good work in a global labor market populated by large multinational employers? Closed for comment; 0 Comments.
- 29 Aug 2005
- Research & Ideas
How Organizations Create Social Value
A study of smart practices by social and business organizations in Iberoamerica. Research by HBS professor James Austin, HBS senior researcher Ezequiel A. Reficco, and UNIANDES professor Roberto Gutiérrez. Closed for comment; 0 Comments.
- 22 Aug 2005
- Research & Ideas
Restoring a Global Economy, 1950–1980
In his recent book Multinationals and Global Capitalism, professor Geoffrey Jones dissects the influence of multinationals on the world economy. This excerpt recalls the rebuilding of the global economy following World War II. Closed for comment; 0 Comments.
- 30 May 2005
- Research & Ideas
Germany’s Pioneering Corporate Managers
Professor Jeffrey Fear's new book Organizing Control takes a fresh look at corporate management innovations created by German companies and managers over the last two centuries. A Q&A with the author. Closed for comment; 0 Comments.
- 16 Feb 2004
- Research & Ideas
HBS Center Focuses on Europe
The Euro is changing the face of business in Europe, and Harvard Business School’s Europe Research Center is right in the middle of it all. Closed for comment; 0 Comments.
- 16 Feb 2004
- Research & Ideas
European Private Equity—Still a Teenager?
If the private equity industry has a life cycle, these are the teenage years for Europe, according to panelists at the conference session on European private equity. Closed for comment; 0 Comments.
- 08 Dec 2003
- Research & Ideas
Why Europe Lags in Pharmaceuticals and Biotech
Governmental, cultural and academic differences are hurting Europe’s chances of gaining on the U.S. Can anything be done? Closed for comment; 0 Comments.
Learning from Failed Political Leadership
Strategic independence and better leadership assessment—these are the critical issues for both business and government in the future, says Professor D. Quinn Mills. In this Q&A he describes key lessons from his new book, Masters of Illusion, coauthored with Steven Rosefielde. A book excerpt follows. Key concepts include: Business leaders must be able to predict changing dynamics between powerful organizations under multiple international economic and geopolitical scenarios. A major failing of current leadership models is the lack of knowledge, awareness, or even interest in life beyond our country's borders, a limitation of growing importance as the global economy expands. The most important threats to America in the decade ahead are from major powers, not terrorists per se. Closed for comment; 0 Comments.