Trade and Investment Promotion in Denmark and Ethiopia

Jawad Ehsanyar & Christoph Nehring

Student thesis: Master thesis

Abstract

Companies often need assistance in their internationalization process, whether they enter foreign markets through exporting or foreign direct investment. At this, trade and investment promotion come into play. Numerous intermediaries carry out promotional activities, and their relevance has been emphasized in research. They become even more critical for companies from developed countries entering developing countries, like Denmark and Ethiopia, as the market poses many internationalization difficulties for Danish companies. In the presence of such difficulties, we explore the role of intermediaries in helping Danish companies cope with these difficulties. Therefore, this paper addresses three main research questions: 1) What are the range of services Danish companies can receive from intermediaries for their internationalization process to Ethiopia? 2) Is there a potential interaction between home and host country actors in rendering support to Danish companies, and if yes, how does it look? 3) What are the main factors that deter Danish companies from their internationalization to Ethiopia? While following theories mainly related to internationalization and the role of intermediaries with a view to trade and investment promotion, we conducted expert interviews with public intermediaries and two Danish private companies. We gained qualitative insights into the investor-home-host triangulation and, subsequently, analyzed our data by using the concept of thematic analysis. Our results showed a wide range of intermediary services available to Danish firms both in Denmark and Ethiopia. As for the interaction between the intermediaries in the triangulation, we found room for improvement. Both the services of intermediaries and a potential improvement in the triangulation can help companies overcome the internationalization difficulties when entering Ethiopia. For future research, it is essential to address either the trade or investment promotion side specifically. Furthermore, case studies with the Ethiopian Investment Commission will be beneficial to enhance further the research on the role and effectiveness of Investment Promotion Agencies.

EducationsMSc in International Business, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2021
Number of pages163
SupervisorsAri Kokko