Nobody downloaded yet

Reasons for the Growth of MNEs from Emerging Economies from a Theoretical Perspective - Essay Example

Comments (1) Cite this document
Summary
The researcher of this descriptive essay mostly focuses on the discussion of the topic of Growth of MNEs from emerging economies and analyzing a theoretical perspective of the issue. The author begins with description of the topic and makes an interesting conclusion in the end of the paper…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.7% of users find it useful
Reasons for the Growth of MNEs from Emerging Economies from a Theoretical Perspective
Read TextPreview

Extract of sample "Reasons for the Growth of MNEs from Emerging Economies from a Theoretical Perspective"

Download file to see previous pages The author of the essay "Growth of MNEs from emerging economies from a theoretical perspective" explains, MNEs are Multinational Enterprises which operate in many nations as part of their internationalizations strategy. Barlett, Ghoshal and Beamish (2008) provide a similar definition to MNEs, by stating MNEs are “organizations that have substantial direct investment in foreign countries and actively manage those operations and regard those operations as integral parts of the company both strategically and organizationally.” However, the same type of organization are also referred by other term as well like international firms, multinational companies, transnational or 'global', to supranational, etc in common day usage, in business circles and in various articles and books. This being the case, the term MNEs are used in particular contexts. That is, as pointed out earlier, the organizations that operate in many countries are not simply a MNC or MNE in just the legal sense. Instead, they are “an aggregate group or network of corporate and non-corporate entities, established under the domestic laws of different nations and thereby endowed with different nationalities”. In that context, the term enterprise or MNE appears to be the most suited for covering all the many and varied forms of corporate and operational interrelationships. (Zurawicki 1979). Thus, due to their extensive operations, they are being influenced by various factors from their origination to every day functioning. This is particularly visible when the MNEs are divided into MNEs from developed countries and MNEs from emerging or developing countries or economies. That is, it is a well known fact that economic advantages, military strength, technological capabilities, even geographical strength and other aspects differentiate and categorize countries of the world as developed, developing and poor countries. This categorization is also visible among the business circles, with the organizations categorized into MNEs from Developed countries (DMNEs for short) and MNEs from Emerging countries (EMNEs for short). According to Rugman (2009), “currently the world's 500 largest MNEs dominate world trade and investment, and in terms of FDI the world's largest firms account for 90 percent of the world total.”. As these MNEs operate in many countries by having subsidiaries, joint ventures, etc., they are making positive impacts all over the world. That is, many MNEs from emerging and least developed countries are also working as part of this large MNE system. “It is through the activities of this set of very large MNEs that less developed countries are being integrated into the world's economic system.” (Rugman 2009). But, at the same time, when the positions of these DMNEs and EMNEs are compared, it appears that EMNEs are positioned well below DMNEs. That is, although EMNEs from many countries including China, India, Brazil, etc, etc. have increased in numbers in the recent decades due to various accentuating factors, they constitute only minority among the largest firms of the world. “Although their numbers have increased, developing-country firms account for only between 5 and 8.4% of the largest public firms. Moreover, they tend to be present at the lower end of the ranking” (Cuervo-Cazurra and Genc 2008). Even then EMNEs are coming up with optimal strategies to strongly compete with the DMNEs, and in many cases are even overtaking the DMNEs. This paper focusing of these EMNEs will first discuss how certain historic, geographic, cultural and institutional factors acted and are still acting as the disadvantages for the EMNEs, and then will discuss how notwithstanding these disadvantages, the EMNEs are able to compete with established DMNEs through effective strategies. One of the main disadvantages which have been faced by ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Reasons for the Growth of MNEs from Emerging Economies from a Essay”, n.d.)
Retrieved from https://studentshare.org/business/1398421-reasons-for-the-growth-of-mnes-from-emerging-economies-from-a-theoretical-perspective
(Reasons for the Growth of MNEs from Emerging Economies from a Essay)
https://studentshare.org/business/1398421-reasons-for-the-growth-of-mnes-from-emerging-economies-from-a-theoretical-perspective.
“Reasons for the Growth of MNEs from Emerging Economies from a Essay”, n.d. https://studentshare.org/business/1398421-reasons-for-the-growth-of-mnes-from-emerging-economies-from-a-theoretical-perspective.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
ve
vellaferry added comment 8 months ago
Student rated this paper as
This essay was always my weak point. I could never complete it well. Still, after I found this particular paper, I understood how it should be done. So, I performed my research afterward and completed the essay in several hours, instead of days as it was previously.

CHECK THESE SAMPLES OF Reasons for the Growth of MNEs from Emerging Economies from a Theoretical Perspective

Emerging Economies (RUSSIA)

...for extended economic growth. Moreover, many studies have revealed that the presence of natural resources may happen to be unfavorable for the company’s development. This is due to the reason that the accompanied positive and negative effects of additional wealth can be assessed as unfavorable for the development of the country. This seems to be unreal but in fact, it may happen due to Dutch disease effect. Dutch disease is negative effect on the economy due to anything, such as discovery of gas reserves, which increases the foreign currency inflow sharply, which in turn leads to appreciation in currency value. This inflow of foreign currency also makes the other products less...
19 Pages(4750 words)Research Paper

Emerging Markets Economies

...?LESSONS FROM EMERGING MARKET ECONOMIES Emerging markets are defined as economies whose trade or business activities are experiencing rapid expansion and growth. Rousseau and Sylla (2001) add that emerging markets are characterized by rapid growth of industries. To achieve and maintain rapid growth of trade and the economy, emerging markets must therefore consider to importance of financial systems are prerequisites for economic growth. This is because banking institutions, securities and sound regulation of the financial system by a national or central bank are economic requirements which catalyze trade and thus propel the rate of economic growth. This paper is based on the writings of Rousseau and Sylla on financial institutions... and...
6 Pages(1500 words)Essay

Theoretical Perspective Research Paper

...? Theoretical Perspective Virtual Project Management means managing the workforce from different parts of the world. The project manager utilizes the latest technologies to plan and develop the project through devices and techniques, which produce virtual images and help in data transfer. This methodology is helpful for those industries where it is difficult for managers to visit and detect the problem areas. Oil and gas industry is such a sector which required detecting oil spills and also exploring new oil and gas fields. The project managers in this sector needed to monitor his workforce and schedule tasks for them. Project managers usually use emails and video conferencing techniques for a two way...
4 Pages(1000 words)Research Paper

Theoretical Perspective

...?Theoretical Perspective Na chnology has the promise of introducing fundamental change the way humans live. The implications of na chnology useare multifaceted and profound, for which reason research on the practical applications of this technology should properly look to a number of theoretical frameworks through which the issues should be viewed. Disruptive Technology Every once in a while, technological developments have such an impact on peoples’ lifestyles that they redefine society and its culture. Nanotechnology appears to be one such technological development (Lok, 2010; Lucas, 2012). Disruptive technology is a term that was first used by Clayton M. Christensen, a...
3 Pages(750 words)Dissertation

Strategies emerging market MNEs employ

...is necessary especially in the expansion strategy. With the ability of the firm to initiate relevant strategies for expansion, it is not impossible to obtain a high market share in the long run. Thus, it is not impossible for emerging market MNEs to venture into the markets in developing and developed countries because they have strategic insights and at their best, they have combined strategic and organizational innovation prior to their goal for a wide level of expansion against those MNEs from developed economies. Default entry modes New MNEs are into alliances and acquisitions allowing them to acquire external growth, while the...
12 Pages(3000 words)Essay

Financial Liberalisation in Emerging Economies

...of integration of emerging economies although there are downsides to liberalisation as seen in high volatility of markets and competition to domestic businesses. International financial however has its advantages as it promotes an open economy, gross capital flows and implies a shift to a flexible exchange rate. Considering the factors that accompany financial liberalisation, the economic crises of the Asian economies could be discussed in perspective. The severe East Asian economic crisis in the late 1990s affected the domestic economy of several countries and led to banking failures and a fall in GDP. However by the late 1990s, the...
20 Pages(5000 words)Coursework

Doing business in emerging economies

...and not to others. This results in unprofitable state-owned businesses continuing to have access to funds while profitable privately owned businesses are cut off. So even though the economy is slowed down, the growth is shifted from the private to the state-owned enterprises. The control of the Chinese Government of non-food prices and their support and subsidization of state-owned enterprises creates another risk. Trade sanctions from International markets against commodities manufactured in China and exported. The reason is that China is classified as a non-market-economy due to the fact that it can sell its products below cost in other countries and therefore...
12 Pages(3000 words)Essay

The Globalisation of Logistics & Supply Chains Management

....265). For example, a MNE of a TRIAD country can choose to enter a BRIC country if such initiative would offer to it a significant advantage towards its competitors, such as lower costs, higher range of resources and so on. 4. Conclusion The criteria on which the entrance of TRIAD MNEs in BRIC countries would be decided can be many. The evaluation of BRIC countries’ potentials using relevant theoretical frameworks and models has led to the following assumption: BRIC countries have more perspective to achieve a long term growth. The reasons for this phenomenon are many, but could be summarized to the following, as also proved through the...
13 Pages(3250 words)Case Study

Theoretical perspective

... and the factors affecting the health of every member of the family. Cultural care values rely on the uniqueness of the kinship, religious beliefs, language, worldview, politics, economy and technology among other basic factors (Leininger & National League for Nursing, 2001). The theoretical perspective investigates the effects of such factors thereby developing a holistic diagnosis to every individual in the family unit. Such is an exhaustive criteria often not achieved in other theoretical perspectives. Reference Leininger, M. M., & National League for Nursing. (2001). Culture care diversity and universality: A theory of nursing. Boston: Jones and Bartlett Publishers.... Theoretical perspective Introduction...
1 Pages(250 words)Assignment

Sustainability In Emerging Economies

...Sustainability in Emerging Economies Sustainability in Emerging Economies Sustainability is the measures and policies initiated by firms and countries to manage the resources in such a way that will not hamper future generations’ ability to derive the same resources. It is a concept that has been adopted by the emerging economies (BRICS). Businesses in the emerging economies have taken advantage of the cost savings and market opportunities that green technologies present. Emerging economies is a term used to describe developing nations (not developed and are not third world). These countries experience rapid economic growth, and they exhibit an increasing level of integration into global markets. Most have reduced poverty levels... a...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Reasons for the Growth of MNEs from Emerging Economies from a Theoretical Perspective for FREE!

Contact Us