The global importance and the international marketing strategies applied by emerging multinationals
-- INTERNATIONAL MARKETING --
Abstract: This paper focuses on the emerging multinationals that composed of two parts: The global importance, especially the importance of economic globalization to the development of emerging multinationals, and how emerging multinationals contribute to the development of global economics; the strategies applied by emerging multinationals, how they strengthen their positions and roles in the international market, how they build their own advantages and gain the maximum profits.
Key words: Global Importance; Emerging Multinationals; International Marketing Strategies.
I. The Importance of Globalization
Globalization is a new phenomenon after World War Ⅱ, of which the core is economic globalization. And at the same time, multinational enterprises from the emerging world are a relatively new phenomenon. Ten years ago, there were about 20 emerging multinationals on the Fortune Global 500 list, and three years ago, 70 were. According to UNCTAD, emerging multinationals takes up only 0.4% of world outward foreign direct investment in 1970,and then grew to 15.8% by 2008,among which China has seen the most dramatic and continuous growth. We can see the figures below. (Accenture,2008)
Economic globalization is today the product of world's economic and technological development, in some way, it adapts to the requirements for the further development of the productive forces, and rapidly promotes the development of national economy. But at the same time, the progress of the world economy also is a tremendous risk.
From a positive perspective of economic globalization for emerging multinationals:
First, it helps to rationally utilize and optimize the allocation of factors of domestic production. Second, it encourages the development of the international division of labor and enhances the international competitiveness. Third, it optimizes the economic structure to become much more reasonable and greatly improves productivity. Fourth, it promotes the development of a multipolar world of economy. In recent years, globalization makes it much easier to access to affordable finance, progressive liberalization of trade and investment rules, and advances in information and communications technology to give aspiring emerging multinationals more room to maneuver than ever before. In turn, emerging multinationals further promotes production and the internationalization of capital, also it promotes the deepening of the international division of labor and economic in the production, investment, trade, finance, technology development and other aspects of globalization, and promote the process of economic globalization and the world economy.
II. The International Strategies Applied by Emerging Multinationals
1. Emerging Multinationals
Definition:
An emerging- market multinational (EMM) is an enterprise based in an emerging market that has operations in at least one other country. Emerging markets include all “newly industrialized Asian economies” and “other emerging market and developing countries,” as classified by the international Monetary Fund.
Main features (Advantages):
• Emerging multinationals have a very good starting point in the national economy, which is rapidly developed. They grow and develop in the domestic market, from where its abundant natural resources and low cost of labor are from.
• From the organizational perspective, the difference in ownership determined the difference in the way of international expansion. In many emerging multinationals, their owners have the ability to learn things quickly and adapt to the new markets.
• Compared with developed countries, emerging market countries have more ability of low cost production, such like low cost of resource and labor. And recent years, there are more and more top talents are come from these emerging countries.
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