The Impact of Emerging Multinationals in the Global Spectrum
Abstract
The word change is a vast understatement in describing what is to occur in the world in
the 21st century. The current statistics, based on purchasing power parity, place the U.S.
as having the world’s largest economy. This makes the common man, looking through
an Anglocentric perspective, quite content. But a recent projection in the Financial
Times states that by the Year 2020, China is to be ranked #1 as the world’s largest
economy, followed by the US, then India, and then Japan. These predictions jolt
America’s comfortable position as number one and show that a new focus needs to be
created. Specifically it is important for researchers in America to understand what
multinational companies in developing countries are doing differently and how this is
impacting their expansion and progress.
My research is on multinational corporations in the developing world. Going global is a
decision that may be based on pressures to maximize shareholder wealth, market share,
or gain financial flexibility within the company. Using information on the characteristics
of multinationals of developing nations, including differences in their economic, legal
and governmental policies, and corporate cultural ideals, I’ve learnt what impacts their
abilities and progress. To list a few other differences in infrastructure of developing
multinationals, the corporate philanthropy, market strategy, financial undertaking, and
role of acquisitions play a key role in shaping their identities. This will prove the
possibilities and potential India and other emerging developing countries have by
expanding their multinational presence. It is important to see both sides of the spectrum,
the glamorized examples of the affluent developed countries’ multinational position as
well as the lesser known developing countries’ multinationals.
By learning about India’s Tata Group, specifically Tata Motors, and how it’s taking the
lead in domestic and foreign markets, there is proof of the importance and power of
emerging multinationals. If continued attention is not placed on these countries, America
may be left behind as the developing underdogs make leaps and bounds toward
capturing strength and lasting market power.
Citation
Srinivasan, Divya (2009). The Impact of Emerging Multinationals in the Global Spectrum. Available electronically from https : / /hdl .handle .net /1969 .1 /86491.