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Publication Date: August 25, 2021

DOI:10.14738/abr.98.10785. Wood, V. R. (2021). Linking Public Institutions of Higher Education (Business Schools), State Trade Agencies and Private Enterprise:

A Model and Method for Scaling Global Trade. Archives of Business Research, 9(8). 263-274.

Services for Science and Education – United Kingdom

Linking Public Institutions of Higher Education (Business

Schools), State Trade Agencies and Private Enterprise: A Model

and Method for Scaling Global Trade

Van R. Wood (Ph.D.)

Philip Morris Endowed Chair in International Business

Director-VCU Center for International Business Advancement(CIBA)

Professor of Marketing

Virginia Commonwealth University

School of Business - Snead Hall

ABSTRACT

In 2015, the Governor of the Commonwealth of Virginia, Mr. Terry McAuliffe,

accepted the advice of companies that were located in Virginia who said they could

use state support to export their goods and services. From this discussion, a the

Virginia International Trade Alliance (VITAL) was created to help those companies

expand and succeed in the international marketplace (see -

https://augustafreepress.com/governor-mcauliffe-announces-creation-of- virginia-international-trade-alliance/ ) This initiative is now managed by Virginia’s

Department of Commerce (through its economic development agency, known as the

Virginia Economic Development Partnership - VCDP). Over the last 5 years, in

partnership with Virginia private businesses, the state’s Chamber of Commerce, and

Virginia’s public institutions of higher education, the program has created public- private partnerships that benefit – 1) large, medium and small companies (with

strategic access to global markets), 2) public universities (particularly participating

business schools that are educating the next generation of savvy international

business managers), and 3) Virginia itself (with more tax revenues realized from

enhance international trade, more jobs related to such trade, and more awareness

of the Virginia “brand” around the world, as traded goods and services from Virginia

become better known and appreciated). In short, meaningful and well thought out

public-private partnerships have led to “win-win” realities for all involved. Virginia

Commonwealth University School of Business (VCU-SB) has participated in this

program (along with 9 other public Virginia universities) since the inception of

VITAL, and to-date the VCU-SB has undertaken over 25 graduate business student

VITAL projects (see - https://business.vcu.edu/centers-institutes-and-labs/center- for-international-business-advancement/ ). Each project has focused on analyzing

and selecting international markets for private Virginia companies, and advising

them with respect to marketing strategies in promising global markets. This has all

taken place, while also educating VCU-SB’s participating graduate students on the

nuances of global market analysis, and strategies and management practices

related to global business success. This conceptual paper represents an overview of

how VITAL projects are selected, researched and completed. The paper provides

series of figures to highlight the theory, practice and necessary steps related to

VITAL’s success. The paper concludes with a call for other states and other countries

to create their own form of VITAL (in general, labeled Vibrant International Trade

Alliances) and to extend the underlying partnerships that this model represents to

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like-minded entities around the world. The overall objective is to develop a global

network of public/private linkages to scale global trade even further. We begin with

a brief discussion of the motivating force for the VITAL model, namely

“globalization.”

GLOBALIZATION – THE FORCE BEHIND VITAL

To provide the context for the focus of this paper, a brief look at “globalization,” including what

it is and what it means is useful. Modern globalization has been described as a “ force” that has

ignited global connectivity among nations, societies, cultures and trade at a level rarely seen in

human history. For business, particularly private, for-profit business, this force and its effects

has been and continues to be substantial (Friedman 1999, 2005; National Geographic

December 2019, Wood, et. al., 2019). And despite the setbacks driven by the Coronavirus

pandemic, which, by some estimates, has negatively impact global economic growth by 2.4%

during 2020, a growing consensus is that a recovery (albeit with altered economic

opportunities and challenges) will commence once the spread of the disease is brought under

control (https://medicalnewstoday.com ; Soergel 2020)

Between 1989 and late 2019, the world’s GDP (Gross Domestic Product), driven considerably

by global trade, rose from approximately $21 trillion to approximately $92 trillion, with the

emerging markets of China, India and Brazil joining the developed markets of the USA, Japan,

Germany, United Kingdom, France, Italy and Canada in the top 10 countries by GDP worldwide

(International Monetary Fund: World Economic Outlook 2019). The private enterprises that

caught the wave of this force benefited greatly (Wood, et.al., 2017; Wood, Franzak and Pitta

2019).

Globalization has become the “super-story” of our time. With this has come the willingness of

organizations of all sorts (for profit, not-for-profit, MNCs, SMEs, NGOs, etc.), to venture into the

far reaches of the planet to explore markets, secure supply chain alternatives, and benefit from

and also aid those markets said to be at the broad “bottom of the population pyramid” - those

which would not have been considered viable markets in the past (Pralahad 2004; The

Economist 2010; Wood 2018). Clearly, global trade is and will continue to be a driver of

development and wealth creation around the world. For many observers, it is apparent that all

companies, states and institutions of higher education should be exploring how they can

become a bigger part of the globalization phenomena and actively benefit from it potential

bounty (Wood and Gillpatrick 2015). Enter the Vibrant International Trade Alliance (VITAL)

model. To further elaborate, the following discussion and corresponding set of figures is

presented to explain a process that may lead to enhanced global trade guided by the VITAL

model.

VITAL - A Model for Scaling Global Trade Through Government Supported Agencies,

Public Universities and Participating Private Enterprise

Most governments (be they at the federal, state or county level), offer some support in one form

or another to business organizations wishing to explore and possibly enter international

markets (Whipple and Frankel, 2001). Many of these offers of support represent services from

poorly funded agencies that themselves might not have the backgrounds or the personnel to

truly make an impact on private business success in the international arena (Moen and Servais,

2002). However, most if not all countries and states do support public institutions of higher

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Wood, V. R. (2021). Linking Public Institutions of Higher Education (Business Schools), State Trade Agencies and Private Enterprise: A Model and

Method for Scaling Global Trade. Archives of Business Research, 9(8). 263-274.

URL: http://dx.doi.org/10.14738/abr.98.10785

education where a wealth of knowledge and a thirst for opportunity to apply such knowledge

exists. Linking 1) government agencies with international trade responsibilities, 2) public

institutions of higher education and 3) private business has proven to be a valuable mechanism

for global trade enhancement (https://augustafreepress.com/governor-mcauliffe-announces- creation-of-virginia-international-trade-alliance/ ).

Figure # 1 details the VITAL model (Vibrant International Trade Alliance) as first presented by

Wood, et.al. (2019). In short, the VITAL model represents a research and professional alliance

created to bring state supported trade agencies together with state supported public

institutions of higher education for purposes of private business growth in the globalized

business world. As shown, and as elaborated earlier in the literature, the model theorizes a

series of antecedents, and moderators to arrive at international success for government

agencies charged with enhancing international trade and investment (GAITIs), public

institutions of higher education (PIHEs) and private enterprises (PIs). It also posits that

participating university students, by participating in at VITAL research undertaking, gain the

needed knowhow to become confident future international business managers. Finally, the

model theorizes that the sum of these parts also results in enhances international brands of all

participants (private enterprises, public institutions of higher education and states as a whole).

How are such alliances created?

Memorandum of Understanding (MOUs) Between Government Agencies Responsible for

International Trade (GAITI) and Public Institutions Higher Education (PIHE)

Once a Vibrate International Trade Alliance (VITAL) is authorized by a sanctioned state

authority (again see the VITAL model shown in Figure #1), the next step is the creation of a

Memorandum of Understanding (MOU) that formally links a government agency charged with

enhancing international trade and investments (GAITI) and a public institution of higher

education (PIHE) charged with educating the next generation of globally competitive business

leaders. Figure # 2 depicts an example of MOU that may be utilized by any authorized state

agency wanting to create a VITAL project with an approved university. As shown, the MOU lays

out the responsibilities and rewards for participating universities and other details

surrounding the agreement. As the process continues, next question becomes - what procedure

guide the actual approval and scope of research of a VITAL project?

Guidelines for Qualifying and Selecting Participating Private Enterprises (PE) to be the

Focus of VITAL Research Projects

Figure # 3 lists the requirements that private companies (known as ‘clients”) must meet in

order to be considered for a VITAL project. As shown, four requirements are to be met in this

regard, including – 1) the client’s current readiness to export, 2) the client’s length of time in

business, 3) the level of the client’s current sales, and 4) the number of current employees

working for the client. These requirements are meant to ensure that all participating clients

have the necessary background and track record to more fully realize the trade potential that

student researchers will be recommending. Clearly, additional requirements can be added to

this list as required by participants.

Once these requirements are established an “application” and “scope of work” document is then

submitted by the public institutions of higher education representative (typically a university

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business professor). Figures # 4 and # 5 represent examples of a VITAL “application” and

“scope of work” documents utilized by the Virginia Economic Development Partnership (VEDP)

and participating Virginia universities to arrive at an approved VITAL “client.” Figure # 4

focuses on general information on potential VITAL clients, and asks for such companies current

involvement with international trade. As shown, the Vital Scope of Research Form (Figure # 5),

focuses on identifying the participating university, primary contact there-in, participating

students and professors, the project’s expected completion date and again, participating

company information. It also calls for the identification of research tools (databases) and

research methods (secondary and primary) to be incorporated into the project. Finally,

signatures of participating authorities (from the university, private company and state agency)

are secured.

Following a companies’ approval as a VITAL “client,” that actual global market research is

undertaken, again typically guided by a professor overseeing a team of graduate business

students. A key consideration at this stage of the process is - what initial guidelines should be

provided to ensure the research undertaken is properly focused and results in useable insights

and recommendations?

Initial Guidelines for Researching Promising Global Market for a VITAL Approval

“Client.”

Figure # 6 depicts a general set of initial instructions provide to the student research team

responsible for finding promising international markets for an approved client. Such

instructions aid each student research team in fully understanding their client’s focus and

competitiveness and why their assigned client might be successful in specific world markets.

Each team must fully grasp their client’s value proposition, their strength and weaknesses and

the global business environment that potentially bodes well (or presents challenges) for their

client in the global business arena.

Once a student team’s understanding of a “client’s focus and competitiveness” is grasped, the

next step in the process becomes – how does the research team arrive at the most promising

international markets and its related recommendations for moving forward? The answer starts

with the use of world-class data-bases.

Data-Bases for VITAL Research – Where is the information?

Figure #7 shows some of the world-class data-bases available at Virginia Commonwealth

University (VCU) utilized by student researchers focusing on global markets of promise for an

approved VITAL client. These data-bases are becoming more common at research focused

universities and can often be shared with partnership universities around the world. A wealth

of information is contained in these sources of information, and any international business

student should not consider him or herself fully educated without being exposed to them and

having an opportunities to use them in a “real world” application such as a VITAL project.

Information contained in such data-bases, including an international market’s history,

economic and political conditions, in-depth country reports, specific industry analysis,

competitor analysis and statistical links and other indicators of global business potential, to

name but a few is invaluable to VITAL type-research being undertaken for by the student team.

The insights coming from these and other data-bases directly effects the ultimate final report -

written and presented - to the client.

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Wood, V. R. (2021). Linking Public Institutions of Higher Education (Business Schools), State Trade Agencies and Private Enterprise: A Model and

Method for Scaling Global Trade. Archives of Business Research, 9(8). 263-274.

URL: http://dx.doi.org/10.14738/abr.98.10785

Once the full scope and breadth of a VITAL study has been concluded the next important issue

in this process is - what might the report to any given client and the conclusions of such a report

look like? Figures # 8 and # 9 are provided as a general global trade report template and visual

depiction of final recommendations of international markets of promise. The figures are offered

as examples for any student research teams focusing on any client seeking insights into

international markets of promise.

GLOBAL TRADE REPORT TEMPLATE

Figure #8 depicts a typical table of contents that a given VITAL report might look like. While

variance on this content structure will be used, depending on the research objectives and client

of focus, the final report of all past VITAL studies overseen by the author has more or less

followed this structure. Advice given to participating student team, based on this structure

include – a) the “executive summary” must be compelling and thus enhance the client’s desire

to read the full report, b) the “introduction” must show the full scope and purpose on the

research with which the student team has been charged, c) the” company overview” must

convey that the team full understands the clients reason for being, its value proposition and

why the client is particularly suited for international success, d) the “SWOT analysis” (strengths,

weaknesses, opportunities and threats) builds on the company overview and details the full

array of positive and negative realities facing the client as it contemplates international market

expansion, e) the methodologies for “determining and ranking promising international

markets” and for “determining and ranking promising strategic alliances” detail the models,

processes, methods and dimensions used by the team to arrive at both the recommended

international markets and the recommend international partners that represent the ultimate

core value of the research undertaken, f) the “analysis results” represents the research

recommendations and contains a compelling synopsis of why these recommendations will

result in international business success for the client, g) “international marketing plan going

forward” presents the clients with next-step options in its global business journey (here the

controllable variable – produce, place, price and promotion options are details for each

recommended international market), h) the “final recommendations and future research”

sections of the team report presents a focused overview of the research and recommendations

as a whole and suggests addition areas where further information of value might be needed,

and finally i) a full set of “appendices” (tables, graphs, etc.) derived from the team research and

all “references” used in the research are provided.

Figure 9 depicts perhaps the most compelling figure (located in the report appendices) that

should be prominently displayed and elaborated upon in the competed research and final

presentation. It represents a parsimonious visualization of how the most promising

international market compare to each other, and which of these markets are the top contenders

for further consideration and possible entry by the client. This figure is based on complex set

of variables (e.g., market potential, political considerations, legal dimensions, economic,

infrastructure actualities, cultural considerations, etc.), measures of those valuable and

modeling considerations that together allow the research team to arrive at each international

markets relative standing on “country attractiveness” and “competitive strengths” dimensions.

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CONCLUSION – SCALING THE VITAL MODEL WITH INTERNATIONAL PARTNERS

The Vibrant International Trade Alliance Model (VITAL) represents a proven means by which

international trade can be scaled up through the partnering of institutions of higher education

(particularly business schools within those institutions), state trade agencies and private

enterprise. As elaborated in this paper, if properly developed and fully supported by all

involved, VITAL can result in “win-win” scenarios for each of the key stakeholders (higher

education and participating students, states in general and private enterprise). This paper has

attempted to more fully detail the necessary consideration and steps involved in the creation

of successful VITAL partnership than previously discussed in the literature.

The next step in the evolution of this model is the formation of Global Vibrant International

Trade Alliances (G-VITALs), involving the partnering of public institutions of higher education,

government sponsored trade agencies and private enterprise in and between representatives

around the world (e.g., the U.S., Latin America, Africa, Asia, Europe, etc.). By leveraging a

broader array of such potential partners into an even great network of relevant, collaborating

alliances the scale and benefits of global trade can only be further realized.

References

Friedman, Thomas L. (1999). The Lexis and the Olive Tree. Farrar, Straus and Girous, New York, New York.

Friedman, T. L. (2005). The world is flat: A brief history of the twenty-first century. New York: Farrar, Straus and

Giroux.

https://augustafreepress.com/governor-mcauliffe-announces-creation-of-virginia-international-trade-alliance/

https://business.vcu.edu/centers-institutes-and-labs/center-for-international-business-advancement/

https://medicalnewstoday.com

International Monetary Fund (2019), World Economic Outlook (April),

https://www.imf.org/en/Publications/WEO/Issues/2019/10/01/world-economic-outlook-october-2019

Moen, O. and P. Servais. (2002). “Born Global or Gradual Global? Examining the Export Behavior of Small and

Medium –Sized Enterprises,” Journal of International Marketing, 10 (3), 49-72.

National Geographic December 2019 – “Effects of Economic Globalization,

https://www.nationalgeographic.org/article/effects-economic-globalization/9th-grade/

Prahalad, C.K. (2004) The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits (Upper

Saddle River, NJ: Wharton School Publishing).

Soergel, Andrew (2020), “Pandemic Raise Worries Over Global Trade’s Future,” U.S. News and World Report,

(April 10), https://www.usnews.com/news/best-countries/articles/2020-04-10/coronavirus-outbreak-throws- future-of-global-trade-into-question.

The Economist (April 24, 2010), "The guru of the bottom of the pyramid",

https://www.economist.com/business/2010/04/22/the-guru-of-the-bottom-of-the-pyramid.

Whipple, Judith M. and Robert Frankel (2001), “Strategic Alliance Success Factors.” Journal of Supply Chain

Management,” 36, (3), (Summer), 21- 28.

Wood, Van R. (2018), “Under-Served, Under-Nourished and Under- Employed: Understanding and Improving the

Lives of the World’s Poorer Three Billion People,” Journal of Economics and Public Finance, Vol. 4 No. 4. 340-351.

Wood, Van R., Whitney Harrison and Jesse Myrich (2017), “Attractiveness of Global Markets: A Case Study on

How Businesses’ Analyze and Select International Markets as Export Targets,” Globalization at a Crossroads, R.

Ajami and J. Goddard, 4th ed., (Routtledge) - Fall 2017.

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Wood, V. R. (2021). Linking Public Institutions of Higher Education (Business Schools), State Trade Agencies and Private Enterprise: A Model and

Method for Scaling Global Trade. Archives of Business Research, 9(8). 263-274.

URL: http://dx.doi.org/10.14738/abr.98.10785

Wood, Van R. and Tom Gillpatrick (2015), “U.S. University Partnerships with Big Emerging Markets: Creating

Student Opportunities and Future Global Business Managers in the Era of Globalization,” The Journal of Human

Resource and Human Learning, vol. 11, no 1 (June 2015), 35 – 42.

Wood, Van R., Frank Franzak and Dennis A. Pitta (2019), “ Fostering Global Entrepreneurship and Business

Development in Latin America Using Government, Public Universities and Private SME Partnerships: The

Vibrant International Trade Alliance (VITAL) Model,” Journal of Economics and Public Finance, vol. 5, no. 4., 473

– 489.

FIGURE # 1: A CONCEPTUAL MODEL OF VITALS (VIBRANT INTERNATIONAL TRADE

ALLIANCES)

bringing together - 1) expertise from government agencies charged with enhancing

international trade and investment (GAITI), 2) public institutions of higher education (PIHE)

charged with educating the next generation of globally competitive business leaders and 3)

private enterprise (PE) seeking real growth in the globalized business environment.

FIGURE # 2: MEMORANDUM OF UNDERSTANDING

This memorandum of understanding is made as of July 1, 20xx by and between UNIVERSITY

ABC, hereinafter referred to as “ABC”, and the STATE ECONOMIC DEVELOPMENT AUTHORITY,

hereinafter referred to as “SEDA”. WHEREAS, SEDA and University ABC desire to increase

international trade, which will lead to increased job creation and economic diversification in

the state, and educate the next generation of competent global trade managers-NOW,

THEREFORE, SEDA and University ABC agree as follows:

1. University ABC will identify and recruit companies to participate in the VITAL program.

Target companies will be those that have international business as a key corporate

strategy and can be prepared for future international sales.

2. To be accepted into the VITAL program, a company must complete a VITAL Application

and the VITAL Application must be approved by SEDA.

3. University ABC will provide companies with customized business plans and market

research to improve their international trade readiness and/or performance.

4. University ABC will submit a scope of work to SEDA for approval of each company

project.

5. University ABC will receive a stipend of $XYZ from SEDA for each of the companies that

participate in the VITAL program.

6. This Memorandum of Understanding can only be amended or modified by a writing

signed by both parties hereto.

7. This Memorandum of Understanding is effective through June 30, 20??.

WITNESS the following signatures and seals, all duly authorized, effective as of the date

first above written:

UNIVERSITY ABC By: __________________________ Name/Title: ________________________

STATE ECONOMIC DEVELOPMENT AUTHORITY By:______________

Name/Title: ____________

FIGURE # 3 - VITAL PROJECTS REQUIREMENTS OF PRIVATE COMPANIES

Four requirements are to be met by any private company under consideration as a VITAL

“client.”

1. The “client” must be already exporting, or expressed interest in selling their products or

services to international customers,

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2. The “client” must have been in business for 18 months or longer (registered with state

or local gov’t and have established websites),

3. The “client” must have annual sales of $50,000 (U.S.) or more, and

4. The “client” must have five or more direct, full-time employees (or contract employees).

FIGURE # 4 - VITAL APPLICATION FORM

Company Information

Company Name

Address 1 City, State, Zip

Code

Address 2 Website URL

Number of employees NAICS Code(s)

Number of employees in

Virginia

What % of sales are

international?

Phone Number

Has your company done market research to determine if its products/services

are exportable?

Yes No

Do your products/services require export licensing? Unknown Yes No

Please briefly describe your

company's products and/or

services.

Please list the countries in

which your company currently

has/is pursuing international

sales. Put N/A if none.

Primary Point of Contact

Name Title

Email Phone

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Wood, V. R. (2021). Linking Public Institutions of Higher Education (Business Schools), State Trade Agencies and Private Enterprise: A Model and

Method for Scaling Global Trade. Archives of Business Research, 9(8). 263-274.

URL: http://dx.doi.org/10.14738/abr.98.10785

Submitted By

Name/Date Title/Signature

FIGURE # 5 - VITAL SCOPE OF RESEARCH FORM

University Information

Virginia University

Primary Contact at University Title

Email Phone Number

Team Members (Students, professors,

etc.)

Expected Completion Date

Company Information

Primary Contact at Company Title

Email Phone Number

Company Overview

Company background and

description of product or service

that is the focus of this research.

Figure # 5 - Vital Scope of Research Form (Continued)

Sources

Identify resources to be used to

conduct the research (e.g.

databases, interviews, etc.).

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Approved and accepted by: Approved and accepted by: Approved and

accepted by:

Name Name Name

Date Date Date

On behalf of: On behalf of: On behalf of:

(University) (Company) (VITAL)

FIGURE # 6 - INITIAL STUDENT GUIDELINES FOR VITAL RESEARCH PROJECT

Each student research team should fully answer the following questions before undertaking in- depth research for a “client.”

1. What is the “value proposition” of each of these companies (what needs are they

focusing upon, and/or what problems do their product(s) and/or service(s) address)?

And how might this value proposition be viewed in international markets?

2. What are the competitive strengths and weaknesses, opportunities and threats of each

of these companies (what company attributes and environmental realities that bode

well and poorly for these companies in the international market arena?)

3. Why do you, as a team, believe the time is ripe for these companies to consider entering

the international business arena (what global or regional trends bode well for the

potential success of these companies?)?

FIGURE # 7 – GLOBAL MARKET RESEARCH DATA BASES

A major key to fully educating future global business managers is a full emersion of world class

data-bases including the following:

Research Countries

• globalEDGE

A great place to "research nearly any international business question." From the International

Business Center at Michigan State University (IBC), it covers history, economy and political

conditions and more for over 200 countries.

• Business Source Complete

Search with the name of your country to find articles and country reports.

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Wood, V. R. (2021). Linking Public Institutions of Higher Education (Business Schools), State Trade Agencies and Private Enterprise: A Model and

Method for Scaling Global Trade. Archives of Business Research, 9(8). 263-274.

URL: http://dx.doi.org/10.14738/abr.98.10785

• EIU Country Reports

The EIU Country Reports examine and explain the important political and economic trends in a

country. Each of our Country Reports contain in-depth and ongoing analysis and forecasts of

political, policy and economic conditions in a country.

Research Global Markets

• Passport GMID

Provides statistics and analysis across industries, countries and consumers.

• BCC Research

Global market research reports focusing on science and technology sectors including

biotechnology, engineering, manufacturing, pharmaceuticals, safety and security, information

technology and food and beverage.

FIGURE # 7 – GLOBAL MARKET RESEARCH DATA BASES (CONTINUED)

Research Companies and Industries

• Uniworld Online

Information for multinational companies with headquarters in over 200 countries and 20,000

industries.

• IBISWorld

Reports for over 7000 U.S. industries. Also includes China and global industry reports.

• more...

Research Trade Statistics and Data

• International Trade Administration

Resources to help U.S. businesses compete in the global marketplace. Look under Data &

Analysis for the statistics link.

• World Bank - Data

Search or browse World Bank data including trade and economic indicators.

FIGURE # 8 - FINAL VITAL REPORTS: PRESENTATION AND RECOMMENDATIONS

After a full semester of student team research, a final presentation with recommendations is

made to the client with state agency representations present. Slide # 8 depicts what a typical

Report might contain.

VITAL Client Company International Expansion Final Report

Report Contents

Executive Summary

Introduction

Company Overview

SWOT Analysis

Methodology for Determining and Ranking Promising International Markets

Methodology for Determining and Ranking Promising Strategic Alliances (International Allies)

In Promising International Markets

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Analysis Results – Global Markets of Promise, Strategic Alliance Selection and Formation,

International Marketing Plan Going Forward

Final Recommendations and Future Research

Appendices

References

Figure # 9 International Markets of Promise – A Graphic Depiction