Advantages and Disadvantages of Entering Developed and Developing Markets

The primary idea of the chapter and the advantages and disadvantages of entering in a
developed market and developing markets.
Chapter seven under the title of “Implementing Strategy” discusses the important aspects of the
proliferation of SMEs and other endeavors pertaining to the emerging economies in an
international environment. Off-Shoring and Next-Shoring can be considered as the keywords to
explain the advantages and disadvantages of trading in developed or emerging markets. When a
player from the emerging market enters in a developed market with the help of Next-shoring, it
can reap the profits by getting economic deals because of the mass production of the goods.
Developed economies can take resort in the process of off-shoring in the search of cheaper
labors. SME’s and small Businesses can take advantage of the export loans and other
encouragement policies of the government sector to meet out the entry barriers (Deresky, 1994).
The formation of a “strategic Alliance is another way of ensuring the profitable functioning of
these businesses.”
Glossary from the Chapter
Joint venture: A joint venture is a strategic alliance between the two or more companies where
they float a new business entity while securing equity for sharing investment, loss, and profits.
Non-equity strategic alliance: Non-equity strategic alliances are the alliances where two or
more companies sign an agreement to float their resources together for particular functions or
operations.