International Business: The New Realities, 5th Edition

Target Governments in Emerging Markets

In emerging markets and developing economies, government agencies and state-owned enterprises are an important customer group for three reasons:

• Governments buy enormous quantities of products (such as computers, furniture, office supplies, and motor vehicles) and services (such as architectural, legal, and consulting services).

• State enterprises in areas such as railways, airlines, banking, oil, chemicals, and steel buy goods and services from foreign companies.

• The public sector influences the procurement activities of various private or semiprivate corporations. In India, the government works directly in planning housing projects. Construction firms lobby the government to gain access to promising deals ...