By Ravi Ramamurti; Jitendra V Singh
"Why have such a lot of organizations in rising economies internationalised particularly aggressively within the final decade? What aggressive benefits do those companies take pleasure in and what are the origins of these benefits? via what recommendations have they equipped their international presence? How is their internationalization affecting Western opponents? And, eventually, what does all this suggest for mainstream overseas company thought? In Emerging Read more...
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Sample text
For the Third World garment firms, the explanation surely did not lie in technology. Hong Kong firms used cutting and sewing equipment and techniques that were easily available to, say, an Indonesian entrepreneur who might take up the business. Rather, I argued in Third World Multinationals, direct investment was the vehicle through which location shifted because of the relationship that had been established between Hong Kong and other East Asian suppliers with their rich-country buyers. Once a supplier had built a track record for quality production and timely delivery, that supplier had an advantage over potential local competitors in, say, Indonesia or Mauritius.
Neither Lall nor I thought that TWMNCs in the 1970s were strong on the marketing side. If they still lack these skills, they may become temporary multinationals, with their innovations soon copied by others. Firms have developed other kinds of innovative consumer products for their home markets but which have also appealed to related ethnic Third World multinationals 31 groups abroad. Inca Kola, a Peruvian cola producer, was an illustration that I used. It had established bottling plants outside Peru, primarily serving Latin American Diaspora communities.
Boston Consulting Group. 2006. The New Global Challengers: How 100 Top Companies from Rapidly Developing Economies are Changing the World. Boston: Boston Consulting Group (May 2006). , L. Jeremy Clegg, Adam R. Cross, Xin Liu, Hinrich Voss, and Ping Zheng. 2007. The Determinants of Chinese Outward Foreign Investment. Journal of International Business Studies, Vol. 38, No. 4 (July): 499–518. BusinessWeek. 2006. Emerging Giants. July 31. Child, John and Suzana B. Rodrigues. 2005. The Internationalization of Chinese Firms: A Case for Theoretical Extension?
