International Economics H4
Country Risk
This model explains how country risk is determined, it’s determined by economic risk,
unwillingness and political risk. Country risk is the risk a government blocs payments because
of unwillingness or insufficient currency.
Country risk is also the paying capacity of a country, which is determined by the present
reserves and the capacity to generate reserves.
The capacity to generate reserves is determined by the political and social stability (not stable
means people don’t want to invest). The domestic economic situation ( a good solid home
base is needed) and the external economic situation.
The external economic situation is determined by the balance of payment, foreign debt and
the international reserves.
Managing exchange rate risk (internal instruments)
When a company does international business, they have a so called exchange rate risk, this
means there are risks involved because of different currencies, a couple of internal
instruments to manage these risks are shown in the figure above.
External instruments for managing exchange rate risks
Furthermore there are external instruments to manage these exchange rate risks, these are
shown in the above figure.
Destep model
In order to determine the market appeal, the DESTEP-model can be used. The DESTEPmodel consists of several factors which determine, to some extend the appeal of the market.
Intercultural communication
Hofstede onion-model
Hofstede believed that, in order to understand the core values and believes of a culture, you
need to look at rituals, attitudes, behaviour and symbols. If you analyse these, then you can
get an understanding of the values and believes of a culture.
Cultural Iceberg
The cultural Iceberg states that there is more to understanding a culture than what you can see. Only
10% of the culture is what is visible, the rest is invisible, such as the values etc.
Cultural dimensions by Hofstede
Hofstede states that there are different cultural dimensions, these dimensions determine how a
culture is like, the different dimensions are indivualism, masculinity, uncertainty avoidance, power
distance, time perspective and indulgence.
Triangle by Mole
The Triangle by Mole is used to get an understanding of communication in business. There are three
things which determine how business is done in a country, these three are: leadership,
communication and organization
Fiscaal recht
Vermogensmutatie
Eindvermogen volgens balans (EV)
-/- Beginvermogen volgens balans (EV)
+ Onttrekkingen (*1)
+ Kapitaalterugbetalingen
-/- Kapitaalstortingen (*2)
VERMOGENSMUTATIE
-/- Objectieve vrijstellingen (landbouw enz.)
+ Niet of beperkt aftrekbare kosten (*3)
+ Giften (*3)
-/- Investeringsaftrek
+ / -/- Fiscale reserves
-/- Correctie deelnemingsvrijstelling → Volgende week
FISCALE WINST
-/- Aftrekbaar deel van de giften (*3)
BELASTBARE WINST
-/- Te verrekenen verliezen (*4)
BELASTBAAR BEDRAG
De vermogensmutatie wordt gebruikt om het belastbaar bedrag voor de vennootschapsbelasting te berekenen.
Het is hierbij belangrijk om rekening te houden met de schakelbepaling (art.8 wet VPB) en te verwijzen naar de
wet inkomstenbelasting.
International Marketing
EPRG-Model by Perlmutter
There are 4 types of international organisations according to Perlmutter, Ethnocentrism
organisations are homeland based, polycentrism organisations acknowledge the fact that different
countries have different cultures, Regiocentric organisations divide different areas based on
similarities such as BRIC and Europe, and Geocentric organisations operate worldwide and divide the
world on similarities.
Abel-Diagram
The Abel-diagram is used to define the market a organisation wishes to operate in. Based on WHO
are my customers WHAT are their demands and WHAT are the technologies on the market.
STP-Model
STP-model is used to make a customer analysis. First you segmentate your customers based on
segmentation criteria, after this you pick a targeting strategy, lastly you decide how you want to
position yourself.
Positioning Grit
The positioning Grit is used to determine how you want your customers to view you, and how you
want your company to position itself.
5-forces by Porter
Porters 5-force model can be used make an industry analysis. Using this model you get an insight on
how the industry is. This is determined by 5 forces: suppliers, customers, substitute goods, potential
competition and internal competition.
Pros and Cons of the different type of entry modes
There are 2 main types of entry modes you can choose as a part of your distribution strategy. These
are indirect export and direct export, the above model shows all the pro’s and cons of the two
choices.
Confrontation Matrix
After a SWOT-analysis is made, a confrontation matrix is made. This is used to confront your different
strengths, weaknesses, opportunity’s and threats, and to give them points according to importance.
After this 3 choices are made to be carried out.
SFA Matrix
After the confrontation matrix, a SFA matrix will be made. This is used to determine how Suitable,
Feasable and Acceptable the choiches, which came out your SWOT are.
Generic competition strategys by Porter
According to Porter, there are three main strategys a company can have, in order to be better than
the competition. However a company can only excel in one strategy, in order to not get stuck in the
middle. These three strategies are shown in the above model.
Value Disciplines by Treacy and Wiersema
Treacy and Wiersema stated that a company has three value disciplines they can carry out. These
three value disciplines all have their own pros and cons. The different disciplines are shown in the
above model.
Export marketing mix
An export marketing mixconsists of 8p’s. A company must carry out these 8 P’s in a good manner in
order to be successful.
INCO
There are different types of international shipping and INCO-terms. Each type of shipping gives their
own responsibility’s for buyer and seller. In the above model it is shown to what extend buyer and
seller have the responsibility.
Export Marketing Plan
The export Marketing Plan consists of 10 steps. These 10 steps are shown in the above model.