Background Note | HBS Case Collection | January 2001

Country Analysis in a "Global Village"

by Bruce R. Scott

Abstract

Substantially rewritten to establish the relevance of countries in the global context. It does so in terms of their differing economic performance in recent decades, and also by contrasting those that have "converged" toward the rich country norm (as theory would predict) from those that have not. It then develops the country analysis framework, with a scheme to identify context, strategy, and performance. Adds a political dimension, following Sam Huntington's emphasis on the strength of a state/government rather than its form; Hernando de Soto's notion that property rights are more important for most Third World countries than FDI receipts; and Joe Stiglitz's thesis that the notion of differing positions on a common production function is simply not plausible. Thus, advantages remain to be created, and substandard returns should be expected in order to catch up. In addition, provides an economic strategy matrix for the classification of strategies, or for the analysis of their evolution through time. A short bibliography is included. A rewritten version of an earlier note.

Keywords: Globalized Economies and Regions; Macroeconomics; Trade; Business Strategy; Performance Evaluation; Industry Growth; Currency; Policy; Development Economics;

Citation:

Scott, Bruce R. Country Analysis in a "Global Village". Harvard Business School Background Note 701-074, January 2001.