Planning Exports to HPEs

Planning Exports to HPEs

The steps needed to develop profitable business with HPEs can be long and expensive. Recall McDonald's long negotiation process with authorities before reaching a joint venture agreement in Russia. Furthermore, there are many examples of firms that expended considerable effort without reaching their business objectives.58 Table 10.4 outlines the major steps a U.S. manager would have to undertake to export profitably to an HPE, which is still operating close to its traditional CPE methods. Note that each step is effectively a decision point. For example, in step 1, if there are insurmountable objections within the company for doing business with HPEs, it would be fruitless to incur the costs inherent in the other steps.
LOOKING TO THE FUTURE  
This chapter has differed from others in that the emphasis
throughout has been on the future. Events within HPEs and between HPEs and successful market economies have been changing so rapidly that any business decisions must be made within the framework of a very uncertain future. Nevertheless, there are several questions that have not heretofore been covered that warrant some speculation. These include the emerging comparative opportunities among HPEs, the types of products and services to sell in those countries, and the comparison of companies and countries in their abilities to exploit the future opportunities.

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