Book contents
- Frontmatter
- Contents
- List of figures
- List of tables
- Preface
- 1 The new multinationals
- 2 Traditional and new multinationals
- 3 Diversification and vertical integration in traditional industries
- 4 Market access and technology in durable consumer goods
- 5 Serving global customers in producer goods
- 6 Learning by doing in infrastructure and financial services
- 7 Competing in hard and soft services
- 8 The new multinational as a type of firm
- References
- Index
1 - The new multinationals
Published online by Cambridge University Press: 05 June 2012
- Frontmatter
- Contents
- List of figures
- List of tables
- Preface
- 1 The new multinationals
- 2 Traditional and new multinationals
- 3 Diversification and vertical integration in traditional industries
- 4 Market access and technology in durable consumer goods
- 5 Serving global customers in producer goods
- 6 Learning by doing in infrastructure and financial services
- 7 Competing in hard and soft services
- 8 The new multinational as a type of firm
- References
- Index
Summary
The new multinationals have some distinct advantages in their sprint to the fore of global business. They are often family-owned or family-controlled (even when they are public companies), which helps them to make decisions quickly. They often enjoy cheap finance from state banks. But they also face particular problems, because they are trying to break into a world economy in which globalization is already well advanced.
The Economist (January 10, 2008)Emerging-market multinationals might be relative newcomers to globalization, but they are quickly making up for lost time.
Mark Foster (Accenture 2008: 6)The global competitive landscape is becoming increasingly populated by multinational enterprises (MNEs) originating from countries that are not among the most advanced in the world in terms of technology or brand reputation. These “new” multinationals come from:
(1) upper-middle-income economies such as Spain, Ireland, Portugal, South Korea, or Taiwan;
(2) emerging economies like Brazil, Chile, Mexico, China, India, or Turkey;
(3) developing countries such as Egypt, Indonesia, or Thailand; or
(4) oil-rich countries like the United Arab Emirates, Nigeria, Russia, or Venezuela.
The new multinationals operate internationally using multiple modes ranging from alliances and joint ventures to wholly owned subsidiaries. Some of them are small and product focused, while others are large and even diversified across many industries. The literature has referred to them in a variety of ways, including “third-world multinationals” (Wells 1983), “latecomer firms” (Mathews 2002), “unconventional multinationals” (Li 2003), “challengers” (BCG 2009), or “emerging multinationals” (Accenture 2008; The Economist 2008; Goldstein 2007; Ramamurti and Singh 2009).
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- Information
- The New MultinationalsSpanish Firms in a Global Context, pp. 1 - 26Publisher: Cambridge University PressPrint publication year: 2010