Year of Graduation
Impact of Host-Country Foreign Economic Policy on Expansion Strategies of Multinational Companies: the Case of FMCG
Multiple research studies have examined the relationship between foreign economic policy and entry strategies of multinational enterprises, but the role of foreign economic policy in determination of an international business strategy remains unrevealed. This paper studies how the choice of an international strategy by FMCG MNEs depends on a host-country foreign economic policy. Incorporating host-country economic policy in international management, the author demonstrated that liberalization of foreign economic policy encourages the use of more transnational and regional strategies by lowering governmental investment and trade restrictions. Examining the case of Shiseido's shift towards regional strategy in Southeast Asia, we elaborate an appropriate strategy for Nevskaya Kosmetika, a Russian FMCG firm, to expand in Eurasian Economic Community.