Cross-Border Markets for Construction Products: Exporting Model

Abstract

The growth of markets in Southeast Asia and Africa opens up opportunities for Russian construction companies to establish and increase their presence on them. However, the fierce competition from foreign companies challenges entering new markets, thus facilitating the creation of new approaches to business promotion. First of all, extensive use of innovative construction technologies provides significant advantages when entering cross–border markets. Therefore, it is relevant to develop an economic model that allows to integrate strengths of the planned business with economic interests of the subjects of the world economy, offering maximum variety of mutual interests and new comfortable cooperation terms. The proposed model identifies investment opportunities for companies and prospects of economic returns within mutually beneficial international cooperation strategies, provides for management of resource flows in order to limit the risks of over budgeting, considers the factors of extensive promotion of construction products using high-tech product lines. The economic model allows to estimate system risks for construction business related to external and internal business environment of the country, such as risks of trade barriers and other negative factors, political and economic risks, modeling parameters of the competitiveness of products ready for production based on implementation of innovative technologies, and also at early stages to make a detailed economic assessment of the prospects and feasibility of doing business in the chosen country.