Doing Business in Less Developed Countries: Financial Opportunities and Risks

There are substantial opportunities and risks in establishing a successful business in developing countries. Financial and economic risks of doing business with developing countries, manifested in World Debt Crisis, require careful examination before a business venture is attempted. The book provides thorough historical information about LDCs' economies and causes of their indebtedness. The most recent data regarding economic performance, indebtedness, and infrastructure, of LDCs are presented as well. The book should prove useful to those considering business in developing countries and to scholars studying economic development and international business and finance.

Written without an extensive use of sophisticated models and jargon, the book is accessible to both academic and nonacademic readers. The book consists of four parts. The first part focuses on defining LDCs and analyzing their stages of economic development. The second part presents two background chapters to aid the reader to put LDCs into an economic and historical context. Part III examines the World Debt Crisis and its effects on developing countries and implications for business in these countries. The final part of the book develops a strategic planning model to assist businesses in deciding whether to do business in indebted LDCs and once the decision is made to guide implementation of business plans. Infrastructure is critical to the success of prospective business enterprise. An appendix presents the most recent and detailed information about infrastructure in LDCs along with an index developed to serve as a quantitative guide to the availability of infrastructure. The book also contains appendices that present detailed data on relevant financial and economic variables in developing countries and an annotated bibliography.

MASHAALAH RAHNAMA-MOGHADAM is Assistant Professor of Finance in the Department of Economics and Finance at Indiana-Purdue University in Fort Wayne. Rahnama has taught at several universities and has published several articles on international debt and world debt crisis in leading business and economics journals.

HEDAYEH SAMAVATI is Associate Professor of Economics in the Department of Economics and Finance at Indiana-Purdue University in Fort Wayne. Samavati has experience teaching economics and statistics at the undergraduate and graduate levels. She has several publications in the areas of macroeconomics and international business in leading economic and business journals.

DAVID A. DILTS is Professor of Economics and Labor Relations in the Department of Economics and Finance at Indiana-Purdue University in Fort Wayne. He has authored or coauthored six books and 80 articles concerning economics and labor relations issues.