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Expanding an MNC: Management - Research Paper Example

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Expanding an MNC Author Institution Abstract The paper describes the evaluation of three emergent economies that a multinational company based in United States is willing to exploit. The company operates in different countries around the globe and is considering expanding its operations in one of the emergent economies…
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Expanding an MNC: Management Research Paper
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"Expanding an MNC: Management"

Download file to see previous pages Based on these factors, the paper recommends Brazil as the favorable market the company should consider while expanding its operations. Expanding an MNC The MNC is based in United States, operating in the information and communications technologies sector. The company has stores in different states around the world. The major products of the company include computers, phones, hardware, application software, media devices, storage devices, speakers and printers. The major services of the company include providing product manuals, complete product information and technical assistance. The company is considering expanding its international operations. The company is evaluating three emergent countries; Brazil, Russia and China. Brazil Brazil has the fifth biggest population in the globe and enormous reserves of natural capital. Since 2004, the Brazilian economy has experienced steady growth. Majority of Brazilians are party partisans, and the politics reflects the state’s diverse social economic backgrounds. Associations are usually complex between the legislature and the executive and between state and federal governments. Therefore, there are difficulties in passing vital reforms for providing enabling business environment. Brazil judiciary is incompetent and subject to economic and political influence (Central Intelligence Agency, 2012). Although there has been some progress, starting a new business in Brazil is bureaucratic, costly and time consuming. The technological environment in Brazil has recorded a slight improvement emanating from the efforts by businesses and governments of promoting the ICT sector. Regulatory environment is hampering further progress. Brazilians highly respect customs and support work ethics, where long-term rewards are anticipated consequently of today’s labor. The society is characterized by risk adverse and resistance to change. The social responsibility indicators include the creation of employment and environmental responsibility (Business Development Bank of Canada, 2012). According to Hofstede (2012), the society has higher uncertainty avoidance and individualism. The society is characterized by low degree of acceptance for uncertainty. Russia Russia has undergone considerable changes since the fall of the Soviet Union. This has enabled the economy to move from a centrally planned economy to a marketed oriented economy. The 1990s economic reforms privatized most industries except defense and energy related sectors. Russia is an emergent economy having vast natural resources and the world’s largest producer of natural gas. Russian politics are characterized by political parties. The politics have been volatile since 1990s, thus leading to unfavorable environment. However, the political environment is stabilizing. There are weak property rights protection laws and the government highly interferes with private sector operations (Central Intelligence Agency, 2012). Starting a business in Russia is time consuming and costly due to numerous regulations and bureaucracies. There has been a progress in the ICT sector in Russia resulting from government and private sector initiatives in enhancing ICT sector as a key to economic growth. There are legal and clan models of business ethics governing businesses in Russia. Legal model implies that the entrepreneur must obey the law. Clan model implies tha ...Download file to see next pagesRead More
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