The paper 'Does the Internationalization Process of Emerging Market Multinationals Differ from Multinational' is a wonderful example of a Macro and Microeconomics Case Study. Recent differences in emerging markets compared to businesses in developed economies have increased attention at the moment in the world economy (Hillestad, 2011). According to (Jones, 2012: 142), the global economic power currently is vested in multinational enterprises operating under universal set standards. The research by Accenture (2007) shows that, of the one hundred largest economies in the world, 59 are currently entrusted in global corporations while the remaining 41 are countries.
This is a process that has taken the course since the second industrial revolution particularly of the 19th century. Other economic analysts assume that internationalization is driven by developed (west and United States) and later imposed by the rest (Belanger et al 2013). Apparently, there is a radical change particularly as the emerging market champions like Mexico Cement Production and India Steel Corporation compete with enterprises in the developed economies (Western countries and the United States). The very interesting part of the interplay between emerging markets and markets in developed countries is, is there any difference?
And if they do exist, what are the implications? Who are emerging markets multinationals? These are enterprises that are based on global new markets and operate in more than one nation (Hillestad, 2011: 80). They have unique growth defined by the intensity in scale and speed in market penetration compared to enterprises in developed countries. Growth in emerging markets is driven by new markets, innovations, foundations of input as well as efficiencies. At times, the less impact from national prestige and state policies accelerates their growth. It is not only about the growth that contrasts the two.
However, timing is also an interesting element to focus on when studying the differences between globalization of emerging markets and enterprises in the developed countries. According to (Elg, 2012), the emergence of new-market multination is currently taking effect at the period of cheap labor, liberalization of the domestic policies as well as advanced information technology. Before the second industrial revolution, local firms had limitations particularly during expansion beyond national borders. This is because reaching outside consumers was difficult and expensive.
But what is the platform at the moment? Local enterprises can reach clients in more than one country with less marginal cost. There are dramatic expansion and economic power of the emerging markets (Accenture, 2007). Key elements in multi-polar global markets; Capital The structure of investment for the emerging markets is less the same as those enterprises in developed countries. For example, Natura in Brazil prospered due to direct investment in new markets both in the developed and developing economies. The standing ties between Natura and markets in western economies have created not only the opportunities in the market but also the effective flow of information on the products.
This implies that the capital structure of the emerging markets depends on the performance of enterprises in the global arena as well as the management on the local grounds. Resources An increase in completion particularly on energy and raw materials reveals how the power of emerging markets has impacted the global economy. Enterprises in the developed countries normally describe their growth in terms of the market share they own in the global economy.
However, emerging firms in the globalized arena describe the growth in terms of market value. Apple manufacturers in the United States filed a lawsuit against Samsung manufacturers in August 2012 the reason being some of the Samsung products had violated Apple Patents. This simply implies the rivalry between the two companies in the global economy. The revenue of Apple manufactures had reduced dramatically since the entrance of Samsung to United States markets. Here there is the interplay between market share and value. Consumers of smartphones realize the value of Samsung products thus shifting their interest.
Apple on the other side drops market share due to content value created by Samsung products.
Accenture, (2007) ‘The Rise of the Emerging-Market Multinational. High performance.
Belanger, J., Levesque, C., Jalette, P., & Murray, G. (2013) ‘Discretion in employment relations policy among foreign-controlled multinationals in Canada.’ Human Relations, 66(3), 307-332.
Brazil: Portugal Telecom forms alliances and considers new acquisitions.. (2001, March 20). South American Business Information , p. 32.
Chapter 14. (n.d.) ‘International Entrepreneurship in an Emerging Economy.’ Retrieved April 4, 2014, from http://www.intechopen.com/books/entrepreneurship-gender-geographies-and-social-context/international-entrepreneurship-in-an-emerging-economy
Company Overview of China National Offshore Oil Corporation. (n.d.).Businessweek.com. Retrieved April 4, 2014, from http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=7828203
Elg, U. (2012) ‘Business, society and politics multinationals in emerging markets.’ Bingley, U.K.: Emerald.
Emerging Markets and the Economics of Internationalization. (n.d.). - Technorati IT. Retrieved April 4, 2014, from http://technorati.com/technology/it/article/emerging-markets-and-the-economics-of/
Goldstein, A., & Pusterla, F. (2010) ‘Emerging economies' multinationals: General features and specificities of the Brazilian and Chinese cases.’ .International Journal of Emerging Markets, 5(3/4), 289-306.
Gorodnichenko, Y, Svejnar, J., & Terrell, K. D. (2008) ‘Globalization and innovation in emerging markets.’ Cambridge, Mass.: National Bureau of Economic Research.
Hillestad, H., C. (2011) ‘How does Multinationals Enterprises from developed markets succeed in emerging markets. Copenhagen Business School, p. 80-87.
Investments by Multinational Corporations Both into and out of the United States Boost Job Growth and Randd. (2013, September 18). States News Service, p. 66.
Jones, G. (2012) ‘The Growth Opportunity That Lies Next Door’ Harvard Business Review, 90, nos. 7-8: 141–145
Multinationals and foreign investment in economic development; proceedings.(Brief Article)(Book Review). (2005, November 1). Reference & Research Book News , p. 55.
Stucchi, T. (2013) ‘The internationalization of the emerging market firms: Context-Specific Study. Copenhagen Business School.