Modeling global market entry decision by fuzzy logic with an application to country risk assessment

This research introduces a fuzzy logic framework to support global market entry decision. We present a fuzzy evaluation method to handle recursive problematical issues arising from the imprecision conveyed by natural language, such as inaccurate measures, ambiguous facts, subjective analyses, and imperfect decision rules that characterize the market-entry decision-making process. The components of the method are described and are applied specifically to assess the level of country risk, a principal category of market evaluation. A case situation is developed to illustrate how the method analyzes and integrates political and social risks, foreign exchange rate, and trade balance.