The rise and growing role of multinational enterprises from the Asia Essay

The rise and growing role of multinational enterprises from the Asia Pacific in the global economy - Essay Example has been a new industrialisation market and has emerged during the years and has ranked third and is expected to produce a large number of multinationals. The emerging multinationals no longer are interested in being perceived as Korean, Chinese, Japanese or Mexican companies because they tend o be global in each and every respect. They aspire to act global, operate globally, think globally, grow globally and also manage globally. Most of the emerging multinationals are owned by shareholders globally such as about 52% of Samsung is owned by international shareholders, 71% of CEMEX, 57% of Hon Hai and nearly 545 of Infosys and 50% for the multinationals as a group (Agtmael, 2007, p.26). This paper takes into consideration three emerging countries which include Japan, China and Korea. Japan The MNCs in China, Japan and Korea utilises its resources irrespective of its location against it competitors and for its customers. It is not only moving the production facilities to benefit but al so breaking down the internal barriers, in order to benefit from the economies of scope. Japanese consumer electronics companies like Sony and Panasonic announced that in order to grow globally, cultural diversity is a must in the top management. Sony was the first MNC in Japan to appoint a non Japanese director and aims to provide the top job to the managers (Horn & Faulkner, 2010, p. 162). The Japanese firms benefited from the home market as they were protected from the home market as they expanded internationally. The Japanese firms followed organic growth in the process of internationalisation as compared to other emerging multinationals which has adopted different option from strategic alliance to exporting. The Japanese companies had a strategy which was very much different from that... The rise and growing role of multinational enterprises from the Asia Pacific in the global economy The business world is changing and it is witnessing the beginning of the end of the old economic order which for over the years have dominated the economy such as US, UK and Japan. The most important change is the rise of the emerging market multinationals whereas the influence and share of multinationals from the developed countries is on the verge of declining trend. The growth in FDI is due to many various factors and one of the portions of money comes from the developed countries but the emerging countries such as Brazil, Russia, India and China have also increased a huge number of FDIs (Capgemini, n.d, p.3). According to a research conducted by PricewaterhouseCoopers, companies which are based on South are considered to put an impact on the global economy in the post recession. Firms from China, Korea India accounts for nearly half of the emerging and new multinationals among which China has produced the most number of new companies (PwC, 2010, p. 3). The following graph shows the emerging multinationals in the global economy. The company chosen for discussion is Toyota. The case deals with the globalization strategies of the Japan based Toyota Motors Corporation also known as Toyota which is one of the leading automobile companies globally. This case aims to examine the evolution from being Japan’s number one automobile maker to one of the topmost competitor in the global automobile market by 2003.