Respondents Rate Macroeconomic Factors Highest When Evaluating International Expansion Plans

Macro motivations were tempered by a realization of micro challenges and difficulty of actualizing symbiotic relationships with overseas business partners.

Respondents rated macro factors such as the "Condition of Chinese Economy" (6.21) and "Condition of US Economy (6.05) as the most important factors impacting their desire to expand into international markets. This was followed by "Global or Regional Trade Initiatives" (5.65) and "Corporate Governance (overseas)" (5.49), and "Security Concerns/Terrorism" (5.02), "Volatility of Energy/Commodity Prices" (4.90), and "Anti Corporate/Brand/American Sentiment" (4.89).

While positive, this macro attraction was not especially strong and tempered again by concerns of the micro realities that must be dealt with. One Equipment Manufacturer who has established international operations in several developed markets noted, "Many countries including China & India have failed to adequately protect copyright and patent rights - these are not suitable partners for our technology."

A Design Consultant expressed the dilemma a little differently, emphasizing the difficulties of actualizing a symbiotic relationship between US firm and a foreign business partner stating "Many Asian companies have tried to get our technologies without paying the cost. They are not successful because most of our value is know-how. But we could not be successful either after a lot of work."

Respondents' quotes

"Many of the countries, including China & India, have failed to adequately protect the copyright and patent rights. These are not suitable partners for our technology."

"Many Asian companies tried to get US/European technologies without paying the cost."

"We are happy to provide equipment and/or on-site services to any location on earth, with the exception of China."