International Market Selection Process: An Investigation of the Relevance of Business Operating Environment

INTRODUCTION

International marketing researchers (Kumar et al, 1993; Douglas and Craig, 1989 and 1992) have stressed the importance and the need for systematically evaluating and selecting potential foreign markets. A number of researchers have either developed decision frameworks (frequently referred as models in the literature) and methodologies for international market selection or applied existing ones (Moyer, 1968; Walvoord, 1980; Cavusgil, 1985; Vargas-Carcamo, 1986; Root, 1987; Walsh, 1993; Kumar et al 1993; Hoffman, 1997; Daniels and Radebaugh, 1998). These decision frameworks present the international market selection process as gradual and necessarily sequential. There is general agreement in the literature that: a screening process is desirable; and market size and level of economic development should be considered early on in the decision process for identifying potential opportunities (Goodnow and Hans/, 1972; Litvak and Banting, 1973; Cundiff and Hilger, 1984; Cavusgil, 1985; Connolly, 1987; Young et al, 1989; Ball and McCulloch, 1993; Papadoupoulos and Jansen, 1994; Daniels and Radebaugh, 1998; Rahman 2001).

Sources of macro-level criteria to be used in screening potential international markets as recommended by the above decision frameworks are primarily the macro-environment and the operating environment of the international market. The primary element of the...

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