The Impact of the Global Financial Crisis on Country Attractiveness

This study assesses the impacts of the recent global financial crisis on the relative attractiveness of 125 countries between 2007 and 2011. Using a strategic model of international expansion that quantifies and incorporates countries' market potential (population size, gross domestic product [GDP] growth, per capita GDP), market risks (economic, political, legal, regulatory), and distance (cultural, geographic), it confirms that some countries have become significantly less attractive (Ireland, Greece, Japan, etc.), while others have become much more attractive (Taiwan, Korea, etc.) as expansion markets for international companies. This study underscores the need for a strategic approach to international expansion decisions. The model can be used by business executives as a risk management tool in international expansion decision making. (C) 2014 Wiley Periodicals, Inc.