Emulating a successful country’s economic model has inherent risks. Copy and paste option is available in computer programmes but not in real life. This is more so in the case of one country copying the economic model that worked well in another and integrate it domestically after tinkering over it. Before venturing into this it is necessary to analyse geoeconomics of both countries. A preview:
Before studying an economic model first and foremost is to understand the economic situation prevailing in the domestic scene and geoeconomics power-play at the regional and/or global level. Here are highlights what to look for and how to analyse factors affecting both internal and external dimensions. Let me call the originator of successful economic model as granter and the other integrating it as host.
Most importantly it is the people who matter a lot for the host. The status of human resource development is the decisive factor. If HRD is weak then implementing any programme would be faulty to start with let alone finishing it. Three features of HRD are noteworthy. One relates to the management efficiency of people who are earmarked to manage a chosen enterprise. Secondly it is the workforce that is disciplined, devoted and showing high degree of efficiency. Third and most critical one is the shared value bonding management and the workforce. This encompasses taking responsibility, improving productivity and the culture & ethos prevailing in their inter relationship.
Evidently, the next in importance is the customer base to whom final products or services are targeted. I am speaking of the domestic scenario. Overall customers identified by the project company must have the needs and willing ness to buy products turned out and top it all the capacity to put up the money for the purchase. Additionally if part of the volume of product/service is intended for exports then it would be necessary to understand and evaluate geoeconomics parameters prevailing in the targeted region outside the country.
Sustainability is the third most risk. Achieving good amount of success domestically does not guarantee that the products turned out by the company would be a roaring success abroad. Too many forces are in play in the foreign scene. Few of these may be common to both domestic and foreign markets such as appeal and affordability of the products. Most others would impact upon quality standards, usability of these in importing countries and above all the sheer quality of competitiveness. The last is conditioned by whether it serves the low to middle end or the high end markets. In the former price is a major determining factor. In the case of latter it is the advanced features incorporated in a product that decides marketability.
To be sure, products intended for abroad are invariable affected by geoeconomics power play. For example, if the host company is using the Intellectual property rights patented by third party, the granter cannot override it. America makes it mandatory for the host to pay for its user rights of patents. Sadly, there would be double payment as both granter and host have to pay for the IPR. That is geoeconomics and any violation brings forth penalties that are exorbitant in nature.
Cheers!
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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