Search results

Over the last 10 years, small- and medium-sized enterprises (SMEs) in developed countries have faced increasingly stiff competition in their local markets, which has put the survival of many of them at risk. To reduce their vulnerability, many SMEs have targeted sales to other countries. Recently, however, the pace and intensity of these firms’ export activities appear to have decreased, as their traditional markets (i.e., the United States and Europe) have been experiencing slow growth. This situation has led some SMEs to explore the possibility of exporting to less traditional countries presenting more opportunities. However, a good number of entrepreneurs remain hesitant to go down this road, in particular given the uncertainty that prevails in those regions and the risks they represent in terms of exports. This study, which was conducted with a sample of 582 Canadian manufacturing SMEs, reveals that two characteristics help explain the fact that some SMEs choose to export to higher risk countries, more specifically to Asia. These characteristics are a positive attitude towards risk-taking among managers and the implementation of certain risk management mechanisms.

Summarizes the net capital flows from industrial to developing/transitional countries 1970‐1996 and recent changes in their equity and bond markets; and identifies the factors affecting these portfolio flows and risk/return behaviour in OIC stock markets. Uses monthly stock return data from ten OIC countries to demonstrate that despite their volatility they might offer opportunities for portfolio diversification; and uses cointegration methods to investigate the dynamic relationships between them. Discusses the causes of the Asian currency crisis and its impact on these stock marekts; and considers what trade and development policies OIC countries should adopt to improve their economies.