Drivers of the international expansion of emerging-market multinationals
| Author | Boscor, D. - Bratucu, G. - Baltescu, C. |
| Position | Dept. of Marketing, Tourism and International Relations, Transilvania University of Brasov |
| Pages | 9-14 |
Bulletin of the Transilvania University of Braşov • Vol. 6 (55) •No. 1 - 2013
Series V: Economic Sciences
DRIVERS OF
THE INTERNATIONAL EXPANSION OF
EMERGING-MARKET MULTINATIONALS
D. BOCOR
1 G. BRTUCU1 C. BLTESCU1
Abstract: The purpose of the present paper is to a nalyze the drivers of the
internatio nal expansion of emerging market multinationals a nd the stra tegies
applied by these companies in other emerging a nd developed markets.
The pa per applies a conceptua l appr oach combined with ana lyses of
statistics and secondar y materia l and presents the company and the countr y
specific advantages. The proposals for the Romania n companies and
institutions ar e based on the comparison between the drivers of expansion in
the BRIC countries.
Key words: emerging-market multinationals, str ategy, expansion.
1 Dept. of Marketing, Tourism and International Relations, Transilvania University of Braşov.
1. Introduction
Emerging-market multinationals are
expanding all over the world and are
increasingly competing with major global
firms for businesses and customers. In the
Fortune Global 500 list of the world’s
biggest companies, in 2012, 73 companies
were Chinese, 8 companies were Indian, 7
companies Russian and 8 companies were
from Brazil. The advances in information
technology, the policies of governments
and the cheap capital have driven these
companies to gain access to new markets
through acquisitions and joint ventures.
Other reasons for the international
expansion were the access gained to raw
materials and the reduction in the
dependence on the domestic market.
Substantial R&D investments and
innovations in BRIC countries and other
emerging markets have determined a
rebalance of global power.
Global giants can be found in the BRIC
countries but also in smaller countries as
Turkey and Egypt. Emerging-market
multinationals have developed new
technologies and new brands and are
participating in the consolidation of global
industries such as: car-making, chemicals
and telecommunications.
The advantages of emerging-market
multinationals compared to western
multinationals are: they can better manage
a broad range of risks, because of the
experience gained in the challenging home
environments, they can easily adapt
products to local markets and they can use
diaspora populations for global expansion.
In order to be competitive with Western
multinationals and multinationals from
other emerging markets, these companies
must have a continuous access to natural
resources, human resources and capital.
Regarding the ownership forms, most of
the Chinese multinationals are owned by
the state, but there are also many private or
family owned companies. The
conglomerate structure can be found in
To continue reading
Request your trial