Innovations in transportation and communications during the twentieth century resulted in goods and services to move among nations with greater ease than at any other time in history. International business is no longer the exclusive realm of the large multinational corporation; small businesses are creating niches for themselves in particular product or service markets. Because of this greater interest in the global economy, companies which are seeking to build long-term strategic plans must consider whether or not international marketing or investing is a critical part of those long-term plans.
When considering international activities, companies take into account their own internal structure, the role of the governments of the countries considered, and the way in which the company would operate in the foreign nation (whether directly, as part of a joint venture, or through some licensing agreement). Political situations must be considered, and the labor situation in the foreign country (as well as in the domestic country) must also be taken into account. The differences in the currencies between the various countries involved must also be considered, and barriers to trade (both tariff and nontariff) also need to be evaluated since the barriers which the company needs to overcome may determine whether a particular venture will be profitable or unprofitable.
This research considers the economic and financial environment in Tunisia at the end of the twentieth century, and whether the country represents an attractive investment opportunity for companies considering expansion into international markets.
Relevance of International Trade Analysis
Multinational corporations are those companies which offer products or services in different countries throughout the world, adapting their products to the countries in which they are selling. Global companies are companies which operate with a high degree of consistency regardles...