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Author: | |
Title: | Political-Economy Considerations in Emerging Economies |
Journal: | Southeuropean review of business finance and accounting
2003 : JAN, VOL. 1:1, p. 107-119 |
Index terms: | EMERGING MARKETS PERFORMANCE APPRAISAL PRICE POLICY TECHNOLOGY |
Language: | eng |
Abstract: | There are basically two government policy instruments that shape business strategy during the corporate expansion in emerging economies. However, political considerations determine, ultimately, the effectiveness of government intervention in translating their impacts into sustainable corporate revenues. Misleading strategies can be adopted by local subsidiaries when price policies and publicly funded technical innovations are assumed exogenous to the policy-decision making process and are treated independently from the political factors that affect them. Consequently, this article provides a theoretical framework for a better understanding of the business performance in emerging markets as a result of collective action exerted by two competing interest groups. |
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