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How can we account for the rise and growing role of multinational enterprises from the Asia Pacific in the global economy Specify your reasons using corporate cases of multinationals from different industries and different countries of origin - Essay Example

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Globalisation is the process that has led to a total reorganisation of international trade as well as integration of financial markets. Firms can now trade in any country of their choice as long as they…
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How can we account for the rise and growing role of multinational enterprises from the Asia Pacific in the global economy Specify your reasons using corporate cases of multinationals from different industries and different countries of origin
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"How can we account for the rise and growing role of multinational enterprises from the Asia Pacific in the global economy Specify your reasons using corporate cases of multinationals from different industries and different countries of origin"

Download file to see previous pages The question in the minds of many analysts is how these firms have managed to dominate the world market for long. Statistics show an increase in the number of multinational firms in the international market from developing countries, evident through an increase in FDI from developing nations as illustrated in the graph.
From the graph, by the year 2006, developing nations accounted for 14% of the total world’s FDI. Countries like China and Japan depend on exports as the major source of income to boost the country’s GDP. The rise of the multinationals from Asia has attracted world attention to the policies and practices leading to the rise of the firms.
The multinational firms enjoy firm specific advantages and country specific advantages that enable them to operate in the international market efficiently. The technological advancement in the country will determine the products to be produced, but the cutting edge is the cost of technology in different countries, so that the two countries are able to produce using the same technology but at different costs (Dolfsma, Duysters & Costa 2009). The firm with lower cost gets an advantage over the competitors. Korea is one Asian country that has benefited from the country advantage in the production of electronics. Proper utilization of available technology in production of electronics in Korea has seen the rise of multinational producers such as sumsung (Kim 2006). Sumsung originates from South Korea, but currently has branches in more than 60 countries.
The change in production cycle has aided the process of international trade with production process separated into various distinct stages. Each stage of production is undertaken at different locations where costs are lowest. The division of production process coupled with good transport system is behind the success of multinationals. The lean production system allows the ...Download file to see next pagesRead More
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Nice paper! Used it to finish an assignment for a management course. It was easy as ABC, for the first time in my life.
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