Emerging Multinational Companies

Critical Analysis on Emerging Multinationals

Introduction

Purpose of my research

I have carried out a critical study on the role of multinational companies, their strategies and impacts on globalization. I collaborated all the study material I came across to provide a better understanding of how multinational companies contribute to economies and to place light on the global competitiveness. I have provided an up to date reality check on how and why these companies allocate specific ativities and operations and I have emphsised on the actual behavior of multinationals.

This paper has been devoted to the analysis and critical discussion of multinational companies that are originating from emerging economies and how they leverage distinctive competitive advantages and widen up distinctive internationalization paths.

What are multinational companies

Multinational companies are those businesses that operate in more than one country. It refers to a corporation that has its assets and facilities in one country or more, other than its home country. For the co-ordination of global management these companies have its head quarters and offices in other countries. Most of the multinational companies are large multinationals that have huge budgets that exceed those of business in many developing countries. The world is advancing and so is the business environment.

Discussion and Analysis

Multinational companies in developed economies

Developed economy is an economy that is more industrialized with advanced technological infrastructure relative to other economies. High GDP, high per capita income are main characteristics of developed economy. Countries like United States, United Kingdom, Germany and Japan comes under the banner of countries with developed structured economies. Here I will execute my study that I made on Australia. Australia is a developed economy then the question arises in my mind, how might multinational companies benefit an economy that is already economically developed? after going through several data material i came to know that even in developed economies there are certain cities where there is still a lack of development. mutinational companies target these lackings and works towards the market gap with pottential strategies.

multinational companies originating from developed countries are known as mature MNE'sand these MNE's operates in most major markets and regions, research, and strong global brands with extensive overseas production.

Advantages and short falls of strategies adapted by western multinational companies

Potential benefits and strategic opportunities.

There us greater opportunity for selling goods in other countries. Opening up new markets, which may not have reached saturation as the domestic market may done, gives the chance of higher sales, economies of scale and improved profitability.

Increased competition gives firms the incentives to become more internationally competitive. Hiding behind trade barriers breeds inefficiency and this will no longer be possible.

Pan-European or pan-global marketing strategies can be used to create a global brand identity. This saves on the costs of different markets and different products.

There is a wider choice of locations, the opportunity to set up operations in other countries and become a multinational. These locations offer, usually, lower costs and direct access to local markets. Working within each country should lead to better market ...