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Multinational Companies from Emerging EconomiesConclusions — The Way Ahead

Multinational Companies from Emerging Economies: Conclusions — The Way Ahead [This study has provided a broad overview of a phenomenon that — while certainly not new in absolute terms—has grown in importance and accelerated over the past few years. The long-term trend is for such dynamics to accelerate further: McKinsey’s research, for instance, suggests that up to US$250 billion of Gulf investment will be directed to Asia in 2006–11 (Barton and de Boer 2006). An analysis of available data, in addition to pointing to the limitations that are intrinsic to all FDI figures and are even more serious in the case of Southern home investors, has highlighted that some emerging economies have become relevant players in the global economy — and even more so in selected regional and national contexts — and that some EMNCs may by now claim the status of real “global players.” The motivations for the corporate decision to internationalize via overseas investment are largely similar to those of OECD-based MNCs — to seek market access, resources, and capabilities — and justify the gamble of operating in foreign territories rather than exporting from the home country. Nonetheless, the international business environment has changed — product cycles are shorter, time-to-market imperatives faster, regionalism and economic liberalization processes more widespread, and network alliances of increasing importance — and firms are pushed to internationalize via direct investment much earlier in their lifecycle.] http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png

Multinational Companies from Emerging EconomiesConclusions — The Way Ahead

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Publisher
Palgrave Macmillan UK
Copyright
© Palgrave Macmillan, a division of Macmillan Publishers Limited 2007
ISBN
978-0-230-57794-7
Pages
148 –152
DOI
10.1057/9780230206335_10
Publisher site
See Chapter on Publisher Site

Abstract

[This study has provided a broad overview of a phenomenon that — while certainly not new in absolute terms—has grown in importance and accelerated over the past few years. The long-term trend is for such dynamics to accelerate further: McKinsey’s research, for instance, suggests that up to US$250 billion of Gulf investment will be directed to Asia in 2006–11 (Barton and de Boer 2006). An analysis of available data, in addition to pointing to the limitations that are intrinsic to all FDI figures and are even more serious in the case of Southern home investors, has highlighted that some emerging economies have become relevant players in the global economy — and even more so in selected regional and national contexts — and that some EMNCs may by now claim the status of real “global players.” The motivations for the corporate decision to internationalize via overseas investment are largely similar to those of OECD-based MNCs — to seek market access, resources, and capabilities — and justify the gamble of operating in foreign territories rather than exporting from the home country. Nonetheless, the international business environment has changed — product cycles are shorter, time-to-market imperatives faster, regionalism and economic liberalization processes more widespread, and network alliances of increasing importance — and firms are pushed to internationalize via direct investment much earlier in their lifecycle.]

Published: Oct 6, 2015

Keywords: Home Country; International Business; Entry Mode; Multinational Company; Corporate Decision

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