Economic freedom of circulation and international business: what are the key challenges?
Résumé
The economic freedom of circulation leads to growing flows of products, services, capital, information, knowledge and individuals. The phenomenon concerns all types of organizations who are expanding internationally, i.e. start-ups, small- and medium-sized enterprises (SMEs) and multinational companies. It has considerably facilitated the international development of companies in both mature and emerging markets. The economic consequences associated with the increasing freedom of circulation represent new business opportunities, but also considerable challenges. In this chapter, we explain how companies can successfully expand into foreign markets. After the presentation of global investment trends, we develop major market entry modes and analyze key challenges companies are facing in a rapidly changing global environment.