International-Business-Dr-R-Chandran-E-book

a) Home country Economy
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International Business- Dr. R. Chandran
Since 1940, hundreds of MNCs from the USA have ventured abroad, with
the support of their home country. After 1990, many Indian companies
started venturing into sub-Saharan Africa, South East Asia and Latin
America due to the liberal policies adopted in India.
In order to encourage the business community to venture overseas, it is
necessary for a country to have liberal economic and trade policies.
1. Economic policies
The country’s economic policies are formulated and the targets are fixed
looking at business opportunities in other countries. It is made simpler for
businessmen to invest or set up units abroad.
2. Trade and commercial policies:
The trade policy is announced by the ministry of
commerce and industry and the target for
nSational foreign trade is fixed. All the
promotional bodies are geared to achieve the
target. Many incentives are held out to overseas
companies, so that they set up operations in the
home country through local partners, Indonesia,
Thailand and Brazil extend all facilities in their
home country to promote their nationals.
3. Promotion and regulatory measures:
The home country should take the opportunity to do business abroad. It can
do this by being proactive, encouraging persons to take risks and extending
fiscal and promotional support. If restrictions are imposed and bureaucratic
hurdles are encountered at all stages the business community will not think
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