The paper "Emerging Multinationals in Emerging Markets" is a great example of a Management Case Study. The increase of multinational corporations from emerging markets is one of the key developments in the world today. Over the past decade, the majority of multinational corporations have been majorly from the developed world – a trend that has changed over time as the market has experienced a shift with the introduction of multinational corporations from emerging markets. Inarguably, multinational corporations play a major role in shaping the global market. Before the emergence of this new crop of corporations from emerging markets, the global companies from developed countries had the autonomy in not only shaping the market but also in creating new opportunities, expansion of investments in developing markets, direct investment in these markets, and making major acquisitions.
In recent times, there has been a transformation in the context of the market with the rise of corporations from speedily developing countries and as such, this new crop of multinational corporations have become key players in the global arena (Wood and Demirbag, 2012). Using an example of a multinational corporation from an emerging market, it is possible to present an analysis of opportunities and threats that globalization creates for decision-makers and the main lessons international business managers can learn about the interaction between home and host country differences in achieving success. An MNC from an emerging market: CEMEX CEMEX is one of the major players in the global market.
This Mexican company is a multinational corporation that is placed seventh in the world among the largest manufacturers of cement and has operations in more than fifty countries. The company is known for its rapid growth and relentless acquisitions of global competitors in the industry.
All through the company’ s history, they have acquired other domestic companies in the Mexican market and rapidly advanced to the international scene. The company has continuously made efforts to expand in the world market by employing strategies such as mergers and acquisitions that are aimed at benefitting the company and increasing its operations globally. Such strategies have enabled the company to compete with chief global players in the industry competently and effectively.
Today, more than fifty-five percent of CEMEX’ s operations are outside the home country. The company has major operations in Central and South America, Egypt, and Asia. They have also recently acquired resources in the Czech Republic, a move that will work to improve the company’ s portfolio in Europe (Cemex. com. 2016). Analysis of Opportunities and Threats Created By Globalization Globalization and Emerging Market MNCs In analyzing the opportunities and threats that globalization creates for decision-makers, it is important to first understand the concept of globalization. Globalization is a process that is based on the incorporation and interaction among people, corporations, and authorities of various countries.
International trade and investment majorly motivate the process of globalization, which is supported by information technology. Globalization in this respect has major implications on major global factors, which include political systems, the environment, and economic development among other factors. The concept of globalization is not new since for the longest time people and businesses have always engaged in cross border ventures; buying and selling items in vast distance regions. For instance, during the middle ages, the silk trade resulted in the Silk Road traversing Central Asia and connected Asia to Europe.
Similarly, for ages, people and businesses have invested in ventures in other countries. However, technological developments and policies of recent times have stimulated an increase in international trade, investment, and migration to such a large degree that the world has become one global village in a new phase of economic development. With the rise of multinational corporations in emerging markets, globalization plays a major role in advancing the growth of such corporations. However, the process also presents various opportunities and threats for decision-makers in such corporations.
Multinational corporations such as CEMEX are faced with opportunities and threats that develop as a constituent of the globalization process.
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