• Title/Summary/Keyword: Country risk

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Country Risk : A Literature Survey (국가(國家) 리스크(Country Risk) : 개념(槪念)과 연구방향(硏究方向))

  • Jung, Hong-Joo
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.13
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    • pp.439-451
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    • 2000
  • This paper aims to define country risk, review previous literature, and provide future direction for further research. Country risk is found to be analyzed in various ways in export, foreign direct investment and international finance, and thus analysis of the risk needs an integrated perspective and individual one as well. Systematic analysis, in particular, concentrating on relationship and structure within several risk is required in order to understand the country risk academically and to manage it practically.

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Comparative Analysis of Factors in Country Risk between Cambodia and Vietnam (캄보디아와 베트남의 국가위험도 영향요인 비교 분석)

  • Lee, Changkeun;Choo, Yongsik
    • Journal of the Korean Regional Science Association
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    • v.34 no.2
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    • pp.65-77
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    • 2018
  • The purpose of this study is to compare and analyze factors in country risk between Cambodia and Vietnam. OECD and the Export-Import Ban of Korea assess country risk of Cambodia more highly than Vietnam. As results of the parametric tests for evaluation factors on the basis of country risk classification, the economic growth rate, the foreign trade index, and the foreign exchange reserves among the economic risks with the corruption index as the political and social risk have statistically significant effect on the difference between country risks of two countries. However, discriminant factor analysis indicates that the economic growth rate, the foreign exchange reserves, and the corruption index are key variables, which represent the difference between country risks of Cambodia and Vietnam. Consequently, the government of Cambodia needs to try to root out the corruption and to expand trade through increasing export for lowering the country risk to the level of Vietnam. Vietnam would also need to focus on attaining the sustainable high economic growth rate and increasing the foreign exchange reserves.

The Effects of Country-Of-Online Retailer on Consumer's Purchase Decision-Making in a Foreign Internet Shopping Mall

  • Hong, Sungjun;Park, Jongchul;Jeon, Seungwon
    • Journal of Korea Trade
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    • v.25 no.6
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    • pp.20-33
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    • 2021
  • Purpose - The growth in consumers' online shopping has even been accelerated by the COVID-19 pandemic. While the purchase can be made from any countries online, the purpose is to examine the effect of the country of the online retailer (COOR) on consumers' perceived risk and purchase motivation, focusing on the retailer not on the brand. Design/methodology - Survey data from online shoppers are analized using the structural equation model. Findings - COOR, like COO of the brand manufacturer, positively affect consumer's purchase intension. First, the images and the perceived psychic distances of the COOR affects both perceived risk and purchase confidence. Secondly, this perceived risk and confidence they put on the transaction then affect the purchase intension of the consumer. Originality/value - We show that the quality of the signal comes not only from the manufacturer-branded product item itself with a certain COO, but also from the retailer who carries it.

THREE-STAGED RISK EVALUATION MODEL FOR BIDDING ON INTERNATIONAL CONSTRUCTION PROJECTS

  • Wooyong Jung;Seung Heon Han
    • International conference on construction engineering and project management
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    • 2011.02a
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    • pp.534-541
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    • 2011
  • Risk evaluation approaches for bidding on international construction projects are typically partitioned into three stages: country selection, project classification, and bid-cost evaluation. However, previous studies are frequently under attack in that they have several crucial limitations: 1) a dearth of studies about country selection risk tailored for the overseas construction market at a corporate level; 2) no consideration of uncertainties for input variable per se; 3) less probabilistic approaches in estimating a range of cost variance; and 4) less inclusion of covariance impacts. This study thus suggests a three-staged risk evaluation model to resolve these inherent problems. In the first stage, a country portfolio model that maximizes the expected construction market growth rate and profit rate while decreasing market uncertainty is formulated using multi-objective genetic analysis. Following this, probabilistic approaches for screening bad projects are suggested through applying various data mining methods such as discriminant logistic regression, neural network, C5.0, and support vector machine. For the last stage, the cost overrun prediction model is simulated for determining a reasonable bid cost, while considering non-parametric distribution, effects of systematic risks, and the firm's specific capability accrued in a given country. Through the three consecutive models, this study verifies that international construction risk can be allocated, reduced, and projected to some degree, thereby contributing to sustaining stable profits and revenues in both the short-term and the long-term perspective.

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Effects of Imported Fashion Products' Use of an Ecolabel, Product Category, and Country of Origin on Consumers' Perceived Physical Risk, Attitude Towards the Products, and Purchase Intention (수입 의류 제품의 에코라벨 인증마크 부착 여부, 제품군, 원산지 국가가 소비자의 신체적 위험지각, 제품에 대한 태도 및 구매의도에 미치는 영향)

  • Yu, Heejeong;Shim, Soo In
    • Journal of the Korean Society of Clothing and Textiles
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    • v.44 no.1
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    • pp.33-52
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    • 2020
  • Some consumers question the safety of imported fashion products. We examine the effects of the use of an ecolabel, product category, and country of origin on consumer responses such as perceived physical risk, attitude towards a product, subjective norm, and intention to purchase imported fashion products. A sample of 508 adults in their 30s to 40s participated in online survey experiments. The survey experiments used 2 (the use of the ecolabel vs no label) × 4 (country of origin: China, Dominican Republic, Norway, and the United States) between-subjects and 4 (product category: men/women's wear, children's wear, underwear, and accessories) within-sub-jects factorial design. A total of 32 product-catalog images (stimuli) and eight versions of the questionnaire were developed. The use of the ecolabel is identified as having a significantly lower perceived physical risk than the no-label. The consumers' perceived physical risk also differs depending on product category and country of origin. Consumers perceive a higher physical risk about children's wear and underwear than other product categories as well as fashion products sourced from developing countries than from developed countries. The reduction of physical risk is found to facilitate consumers' purchase decision-making process.

Surrogate Internet Shopping Malls: The Effects of Consumers' Perceived Risk and Product Evaluations on Country-of-Buying-Origin Image (망상대구점(网上代购店): 소비자감지풍험화산품평개대원산국형상적영향(消费者感知风险和产品评价对原产国形象的影响))

  • Lee, Hyun-Joung;Shin, So-Hyoun;Kim, Sang-Uk
    • Journal of Global Scholars of Marketing Science
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    • v.20 no.2
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    • pp.208-218
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    • 2010
  • Internet has grown fast and become one of the most important retail channels now. Various types of Internet retailers, hereafter etailers, have been introduced so far and as one type of Internet shopping mall, 'surrogate Internet shopping mall' has been prosperous and attracting consumers in the domestic market. Surrogate Internet shopping mall is a unique type of etailer that globally purchases well-known brand goods that are not imported in the market, completes delivery in the favor of individual buyers, and collects fees for these specific services. The consumers, who are usually interested in purchasing high-end and unique but not eligible brands, have difficulties to purchase these items overseas directly from the retailers or brands in other countries due to worries of payment failure and no address available for their usually domestic only delivery. In Korea, both numbers of surrogate Internet shopping malls and the magnitude of sales have been growing rapidly up to more than 430 active malls and 500 billion Korean won in 2008 since the population of consumers who want this agent shopping service is also expending. This etail business concept is originated from 'surrogate-mediated purchase' and this type of shopping agent has existed in many different forms and also in wide ranges of context level for quite a long time. As marketers face their individual buyers' representatives instead of a direct contact with them in many occasions, the impact of surrogate shoppers on consumer's decision making has been enormously important and many scholars have explored various range of agent's impact on consumer's purchase decisions in marketing and psychology field. However, not much rigorous research in the Internet commerce has been conveyed yet. Moreover, since as one of the shopping agent surrogate Internet shopping malls specifically connect overseas brands or retailers to domestic consumers, one specific character of the mall's, image of surrogate buying country, where surrogate purchases are conducted in, may play an important role to form consumers' attitude and purchase intention toward products. Furthermore it also possibly affects various dimensions of perceived risk in consumer's information processing. However, though tremendous researches have been carried exploring the effects of diverse dimensions of country of origin, related studies in Internet context has been rarely executed. There have been some studies that prove the positive impact of country of origin on consumer's evaluations as one of information clues in product manufacture descriptions, yet studies detecting the relationship between country image of surrogate buying origin and product evaluations rarely undertaken regarding this specific mall type. Thus, the authors have found it well-worth investigating in this specific retail channel and explored systematic relationships among focal constructs and elaborated their different paths. The authors have proven that country image of surrogate buying origin in the mall, where surrogate malls purchase products in and brings them from for buyers, not only has a positive effect on consumers' product evaluations including attitude and purchase intention but also has a negative effect on all three dimensions of perceived risk: product-related risk, shipping-related risk, and post-purchase risk. Specifically among all the perceived risk, product-related risk which is arisen from high uncertainty of product performance is most affected (${\beta}$= -.30) by negative country image of surrogate buying origin, and also shipping-related risk (${\beta}$= -.18) and post-purchase risk (${\beta}$= -.15) get influenced in order. Its direct effects on product attitude (${\beta}$= .10) and purchase intention (${\beta}$= .14) are also secured. Each of perceived risk dimension is proven to have a negative effect on purchase intention through product attitude as a mediator (${\beta}$= -.57: product-related risk ${\rightarrow}$ product attitude; ${\beta}$= -.24: shipping-related risk ${\rightarrow}$ product attitude; ${\beta}$= -.44: post-purchase risk ${\rightarrow}$ product attitude) as well. From the additional analysis, the paths of consumers' information processing are shown to be different based on their levels of product knowledge. While novice consumers with low level of knowledge consider only perceived risk important, expert consumers with high level of knowledge take both the country image, where surrogate services are conducted in, and perceived risk seriously to build their attitudes and formulate decisions toward products more delicately and systematically, which is in line with previous studies. This study suggests several pieces of academic and practical advice. Precisely, country image of surrogate buying origin does affect on consumer's risk perceptions and behavioral consequences. Therefore a careful selection of surrogate buying origin is recommended. Furthermore, reducing consumers' risk level is required to blossom this new type of retail business whether its consumer are novices or experts. Additionally, since consumer take different paths of elaborating information based on their knowledge levels, sophisticated marketing approaches to each group of consumers are required. For novice buyers strong devices for risk mitigation are needed to induce them to form better attitudes and for experts selections of better and advanced countries as surrogate buying origins are advised while endorsement strategy for the site might work as a reliable information clue to all consumers to mitigate the barriers to purchase goods online. The authors have also explained that the study suffers from some limitations, including generalizability. In future studies, tests of and comparisons among different types of etailers with relevant constructs are recommended to broaden the findings.

A Multi-level Approach to Perceived Risks of Medical Tourism Service and Purchase Intention: An Empirical Study from Korea

  • KIM, Minsook
    • The Journal of Asian Finance, Economics and Business
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    • v.9 no.1
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    • pp.373-385
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    • 2022
  • Due to the lack of information, medical tourists are regarded to be at high risk. Prior medical tourism research has found that various types of perceived risks have a significant impact on medical tourists' purchase behavior. Even though medical tourism is predicted to increase, there is a lack of behavioral research to explain how perceived risks affect medical tourists' purchase behavior. In the context of Korean medical tourism, this study attempts to evaluate the effects of multi-level (macro, organizational, and personal) factors on medical tourists' perceived risks and purchase intentions. A conceptual model and hypotheses were built and empirically validated to investigate links between multi-level characteristics, perceived risks, and purchasing intentions. The data for this study was collected from Chinese tourists using a questionnaire. The impact of cognitive country image, affective country image, and medical service quality on fundamental risk is confirmed by statistical testing. Surprisingly, expectancy discrepancy risk is influenced only by cognitive country image and information search capabilities. Both fundamental and expectation discrepancy risks lower medical tourists' purchase intentions. The findings of this study show that a multi-level strategy is required to investigate the links between perceived risks and medical tourism purchasing intentions based on macro, organizational, and personal factors.

The Effect of Consumer Affinity and Country Image Toward Willingness to Buy

  • Halim, Rizal Edy;Zulkarnain, Elszuary Abrar Uzi
    • Journal of Distribution Science
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    • v.15 no.4
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    • pp.15-23
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    • 2017
  • Purpose - This research aims to determine whether the consumer affinity and ethnocentrism as well as the image of a foreign country (Japanese product as the most popular product in Indonesia) are able to influence behavior related to the perceived risk and willingness to buy foreign products from the affinity country. Research design, data, and methodology - Using survey techniques with 164 respondents, the study uses structural equation model with confirmatory factor analysis (CFA). To ensure the research objective and appropriate respondent, then we select an individual who have interest on Japanese culture & language. The primary and secondary data used in this study. Primary data refers to information collected directly from respondent by questionnaires dissemination while secondary data is provided from well-established literatures. Results - The results show us that the ethnocentrism has dominant affection role compared to affinity in order to influence consumer behavior meanwhile, the product country image has cognition role to evoke consumer desire to consume foreign products. Conclusions - From a theoretical perspective, the study contributes to international marketing literature by refining the conceptualization of the consumer affinity construct and highlighting its multidimensional nature. The consumer affinity research need to enrich in term of the context and the different culture and situation.

Consumer Shopping Orientation toward Foreign Brands (Part II) - in the context of clothing involvement, ethnocentrism and country-of-origin effects - (외국상표 의류에 대한 소비자 쇼핑성향 연구(제2보) -의복관여, 자민족중심주의, 원산지효과와의 관련을 중심으로-)

  • 안소현;이경희
    • Journal of the Korean Society of Clothing and Textiles
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    • v.21 no.4
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    • pp.699-709
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    • 1997
  • The purpose of this study is to investigate consumer shopping orientation toward foreign brands in the context of clothing involvement, ethnocentrism, country-of-origin effects and demograpic variables. Prior to this paper, shopping orientation was studied in connection with ethnocentrism and country-of-origin effects. The questionnaire was distributed to 300 female consumers over twenty years old living in Pusan area and finally 213 data serfs were used for statistical analysis. By factor analysis, 6 clothing involvement factors were identified; fashion interest, symbolism, pleasure interest, inclination to harmony, aesthetic expression and perceived risk. A result of canonical correlation analysis about shopping orientation factors and clothing involvement factors is as follows. Two shopping orientation factors (follow to foreign brands and country-of-orion consciousness) positively correlate with three clothing involvement factors (fashion interest, symbolism and pleasure interest) , and two shopping orientation factors (preference to domestics and country-of-orion consciousness) positively correlate with author clohting involvement factor (percived risk). Anocova procedure revealed that five shopping orientation factors were related to clothing involvement factors, groups according to ethnocentric disposition, country-of-origin effects and demograpics respectively, even though there are some differences. Based on the conclusions, marketing strategies were developed.

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A Study on National Mining Investment Security Analysis for the Overseas Mineral Resources Investment Business (해외 광물자원 투자 사업을 위한 국가위험도 분석 연구)

  • Ko, Eun-Mi;Choi, Soen-Gyu;Kim, Chang-Seong;Kim, Seong-Yong;Pak, Sang-Joon
    • Economic and Environmental Geology
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    • v.41 no.5
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    • pp.475-484
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    • 2008
  • In this study, we analyzed national mining investment security and country risk, and suggested a new index for exploration and development investment for mining projects in abroad by an analysis of relationship between these grades and mineral resource development investment. For this, potential risks for mining in mineral-rich countries are assessed, and the risk of the exploration and development investment for mining projects is relatively evaluated by OECD country risk. It is noted that countries of the lower ranks in OECD are consistently good agreement with the high grade in Behre Dolbear Group Inc. for favorable mineral exploitation, whereas the higher ranks have shown diverse and high risks for the mining investigation and development. Consequently, it is necessary that assessment of the relationship between mineral resource index and country risk for mining projects to be investigated and developed in future should be applied before business decision of mineral investigation projects in abroad.