The Impact of Emerging Multinationals in the Global Spectrum
MetadataShow full item record
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.
Srinivasan, Divya (2009). The Impact of Emerging Multinationals in the Global Spectrum. Available electronically from