Cross-border expansion strategy of U.S. real estate development firms : entry and operation models in Brazil

摘要

Over the past several decades, technological advances, the spread of free-market ideology and the shifting of the economic center of the world have resulted in an incredible transformation of the world into a globalized, interdependent place. The term "globalization" has become an essential keyword associated with business in the modern world, creating great opportunities for U.S. firms to seek future growth potential in the global arena, especially in emerging markets that are undergoing rapid economic development. Although the real estate industry has achieved some level of globalization in general, the development sector is one area of a broad real estate industry that has yet to show significant strides in global expansion activities. The purpose of this study is to examine the current business landscape of U.S. real estate developers' globalization efforts and to create a qualitative analysis of why globalization works / does not work for real estate developers based in the U.S. The ultimate question the study asks and answers is what are the key strategies that U.S.-based real estate developers should use to develop real estate property in emerging markets (Brazil, in particular)? Brazil was extensively investigated as the topic of this research. The research discovered some development risks in Brazil associated with the high levels of bureaucracy, tenants' perception of the product and lack of market intermediaries. A number of American real estate development firms have successfully overcome these hurdles by forming strategic alliances with local partners and adequately responding to cultural and administrative distances between Brazil and the U.S.